The inevitability of capacity underinvestment in competitive electricity markets

Milstein, Irena; Tishler, Asher

doi:10.1016/j.eneco.2011.07.004

Cited by 47 publications

(18 citation statements)

References 24 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…3 Although the analysis becomes more complicated, it is straightforward to demonstrate the nature of the solution is unchanged by adding more generating technologies (Milstein and Tishler, 2009 Puller (2007) shows that the conduct of the firms in the restructured electricity market in California during April 1998 until late 2000 is consistent with a Cournot pricing game. Bushnell et al (2008) find that a Cournot-competition predicted equilibrium prices are good approximations for actual electricity prices during the summer of 1999 in three US markets.…”

Section: Modelmentioning

confidence: 97%

“…2, PV capacity is about 22% of total capacity when PV capacity cost is reduced by 80%. Milstein and Tishler (2009) show that the frequency of price spikes does not depend on the fixed cost of the base technology (PV in our model) when its capacity is always available (r ¼1). This result does not hold when ro1.…”

Section: Percent In 2009mentioning

confidence: 98%

“…Following Smeers (2005, 2007) and Milstein and Tishler (2009), the annual production cost of the i-th firm employing technology G (technology S) and a generator of…”

Section: Modelmentioning

confidence: 99%

“…(3) is given in Milstein and Tishler (2009) and the solution of Eq. (4) is given in Tishler et al (2008).…”

Section: Modelmentioning

confidence: 99%

See 3 more Smart Citations

Intermittently renewable energy, optimal capacity mix and prices in a deregulated electricity market

Milstein

Tishler

2011

Energy Policy

Self Cite

View full text Add to dashboard Cite

Section: Modelmentioning

confidence: 97%

Section: Percent In 2009mentioning

confidence: 98%

See 2 more Smart Citations

Intermittently renewable energy, optimal capacity mix and prices in a deregulated electricity market

Milstein

Tishler

2011

Energy Policy

Self Cite

View full text Add to dashboard Cite

“…Whether sufficient investment incentives are present in today's liberalized energy-only markets should is subject of another line of research (Sauma & Oren 2009;Milstein & Tishler 2012). Similarly, subjects such as security of supply and risk aversion of planners deserve attention (van der Weijde & Hobbs 2012) and should possibly be modeled with tools that include uncertainty in demand and renewable energy feed-in.…”

Section: Discussionmentioning

confidence: 99%

Integrated Electricity Generation Expansion and Transmission Capacity Planning: An Application to the Central European Region

Schröder

Bracke²

2012

SSRN Journal

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis article presents an integrated electricity dispatch and load flow model with endogenous electricity generation capacity expansion. The target is to quantify generation capacity requirements for 2030 and where within Central Europe it shall be ideally placed when taking into account the projected grid structure. We explicitly model the interdependence between grid operation and power plant placing as we investigate the contribution of centralized power plant placement on reducing the need for grid expansion. The application focuses on Germany and its neighbors and reference is made to recently published plans on grid expansion (TSO 2012). We adopt the perspective of a welfare maximizing system planner and thus determine capacity expansion levels as first-best benchmark. Results show that optimal capacity expansion levels are much lower than previous studies indicate (e.g. dena (2008); EC (2011); EWI et al. (2010);Maurer et al. (2012)). We also show that the need for grid expansion can be reduced by the appropriate placing of just a few Combined Cycle Gas Turbine (CCGT) power plants as well as the use of storage and Demand-Side-Management. The presence of intra-national HVDC lines as proposed in the Grid Development Plan of 2012 (TSO 2012) is found to significantly reduce overall congestion and the need for back-up power plants. However, the contribution of the proposed HVDC lines varies greatly from project to project, calling for a prioritization of plans.

show abstract

Residential winter kWh responsiveness under optional time-varying pricing in British Columbia

Woo

Shiu

et al. 2013

Applied Energy

View full text Add to dashboard Cite

The inevitability of capacity underinvestment in competitive electricity markets

Cited by 47 publications

References 24 publications

Intermittently renewable energy, optimal capacity mix and prices in a deregulated electricity market

Intermittently renewable energy, optimal capacity mix and prices in a deregulated electricity market

Integrated Electricity Generation Expansion and Transmission Capacity Planning: An Application to the Central European Region

Residential winter kWh responsiveness under optional time-varying pricing in British Columbia

Contact Info

Product

Resources

About