Evolution of Global Electricity Markets

Evolution of Global Electricity Markets

by
Released June 2013
Publisher(s): Academic Press
ISBN: 9780123979063

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Book description

Get the latest on rapidly evolving global electricity markets direct from the scholars and thought leaders who are shaping reform. In this volume, dozens of world-class experts from diverse regions provide a comprehensive assessment of the relevant issues in today’s electricity markets.

Amid a seething backdrop of rising energy prices, concerns about environmental degradation, and the introduction of distributed sources and smart grids, increasingly stringent demands are being placed on the electric power sector to provide a more reliable, efficient delivery infrastructure, and more rational, cost-reflective prices. This book maps out the electric industry’s new paradigms, challenges and approaches, providing invaluable global perspective on this host of new and pressing issues being investigated by research institutions worldwide. Companies engaged in the power sector’s extensive value chain including utilities, generation, transmission & distribution companies, retailers, suppliers, regulators, market designers, and the investment & financial rating community will benefit from gaining a more nuanced understanding of the impacts of key market design and restructuring choices. How can problems be avoided? Why do some restructured markets appear to function better than others? Which technological implementations represent the best investments? Which regulatory mechanisms will best support these new technologies? What lessons can be learned from experiences in Norway, Australia, Texas, or the U.K.? These questions and many more are undertaken by the brightest minds in the industry in this one comprehensive, cutting-edge resource.



  • Features a unique global perspective from more than 40 recognized experts and scholars around the world, offering opportunities to compare and contrast a wide range of market structures
  • Analyzes how the implementation of existing and developing market designs impacts real-world issues such as pricing and reliability
  • Explains the latest thinking on timely issues such as current market reform proposals, restructuring, liberalization, privatization, capacity and energy markets, distributed and renewable energy integration, competitive generation and retail markets, and disaggregated vs. vertically integrated systems

Table of contents

  1. Cover image
  2. Title page
  3. Table of Contents
  4. Dedication
  5. Copyright
  6. About the Authors
  7. Foreword
  8. Preface
  9. Introduction
    1. Background
    2. Objectives and Organization of the Book
  10. Part I: The Evolution of European Electricity Markets
    1. Chapter 1. Evolution of the British Electricity Market and the Role of Policy for the Low-Carbon Future
      1. 1 Introduction
      2. 2 The First Two Decades
      3. 3 The Climate Challenge
      4. 4 Reforming the Electricity Market
      5. 5 Criticisms of the EMR
      6. 6 Conclusions
      7. References
    2. Chapter 2. Electricity Market Reform in Britain: Central Planning Versus Free Markets
      1. 1 Introduction
      2. 2 The Challenge
      3. 3 Improved Markets
      4. 4 An Alternative Market-Based Approach: Tradable Carbon-Intensity Targets
      5. 5 A Central Buyer
      6. 6 Conclusions
      7. References
    3. Chapter 3. The French Paradox: Competition, Nuclear Rent, and Price Regulation
      1. 1 Introduction
      2. 2 Abbreviated History of French Electricity Sector
      3. 3 The Different Stages of the Liberalization of Electricity in Europe
      4. 4 Nuclear Differential Rent and Scarcity Rent Must Not Be Confused
      5. 5 Sharing the “Nuclear Scarcity Rent”: The ARENH Mechanism
      6. 6 ARENH and Current Cost of Nuclear Not to Be Confused
      7. 7 The French Nuclear Debate
      8. 8 Conclusions
      9. References
    4. Chapter 4. Turnaround in Rough Sea—Electricity Market in Germany
      1. 1 Introduction
      2. 2 The Electricity Market in Germany
      3. 3 The Energiewende 2011
      4. 4 Future Implications of the Turnaround
      5. 5 What Does the Turnaround Mean for the German Economy?
      6. 6 European Policy Targets
      7. 7 Conclusion
      8. References
    5. Chapter 5. The Growing Impact of Renewable Energy in European Electricity Markets
      1. 1 Introduction
      2. 2 Historical Trends and Future Prospects
      3. 3 The Changes After the Liberalization of the Electricity Markets
      4. 4 The Impact of Higher Shares of Renewables in Electricity Markets
      5. 5 New Market Structures
      6. 6 Conclusions
      7. References
    6. Chapter 6. Renewable Energy, Efficient Electricity Networks, and Sector-Specific Market Power Regulation
      1. 1 Introduction
      2. 2 Disaggregated Nodal Pricing
      3. 3 The Social Welfare Maximizing Benchmark Under Variable Investments
      4. 4 Disaggregated Nodal Pricing and Market Power Regulation
      5. 5 Conclusions
      6. References
    7. Chapter 7. From Niche to Mainstream: The Evolution of Renewable Energy in the German Electricity Market
      1. 1 Introduction
      2. 2 Market Integration of Renewable Electricity in Germany
      3. 3 The Evolution of Support Schemes for Renewables
      4. 4 The Evolution of Electricity Market Design
      5. 5 Conclusion
      6. References
    8. Chapter 8. The Challenges of Electricity Market Regulation in the European Union
      1. 1 Introduction
      2. 2 The Road to Integrated Markets in the European Union
      3. 3 A New Age of Regulatory Intervention
      4. 4 Conclusion
      5. References
  11. Part II: The Evolution of Electricity Markets in The Americas
    1. Chapter 9. The Evolution of the PJM Capacity Market: Does It Address the Revenue Sufficiency Problem?
      1. 1 Introduction
      2. 2 Market Essentials
      3. 3 Overview of PJM
      4. 4 History of Capacity Markets in PJM
      5. 5 Market Outcomes in PJM
      6. 6 Current Issues with Capacity Market Design
      7. 7 Conclusion
    2. Chapter 10. Texas Electricity Market: Getting Better
      1. 1 Introduction
      2. 2 Restructuring and Refinements
      3. 3 The Remaining Challenges
      4. 4 Conclusions
      5. References
    3. Chapter 11. From the Brink of Abyss to a Green, Clean, and Smart Future: The Evolution of California’s Electricity Market
      1. 1 Introduction
      2. 2 The Brink of Abyss
      3. 3 Market Redesign for Efficiency and Flexibility
      4. 4 Forces Shaping the Twenty-First Century Power System
      5. 5 How These Changes Affect the Electricity Markets
      6. 6 CAISO Initiatives and Innovations
      7. 7 Conclusion
    4. Chapter 12. Unfinished Business: The Evolution of US Competitive Retail Electricity Markets
      1. 1 Introduction
      2. 2 Market Size and Competitive Activity
      3. 3 Retail Choice Models
      4. 4 Conclusion
    5. Chapter 13. Fragmented Markets: Canadian Electricity Sectors’ Underperformance
      1. 1 Introduction
      2. 2 Electricity Markets in Canada
      3. 3 Electricity Market Integration Forces and Obstacles
      4. 4 Conclusion
      5. References
    6. Chapter 14. Latin America Energy Integration: An Outstanding Dilemma
      1. 1 Introduction
      2. 2 South America’s Energy Market
      3. 3 Experiences in Regional Energy Integration
      4. 4 Energy, Integration, and Geopolitics in Latin America
      5. 5 Conclusion
      6. 6 Annex
      7. References
  12. Part III: The Evolution of BRICs Electricity Markets
    1. Chapter 15. The Evolution of Brazilian Electricity Market
      1. 1 Introduction
      2. 2 The Brazilian Power System
      3. 3 The Evolution of Brazil’s Electric Power Sector
      4. 4 Future Trajectories
      5. 5 Conclusion
      6. References
    2. Chapter 16. The Russian Electricity Market Reform: Toward the Reregulation of the Liberalized Market?
      1. 1 Introduction
      2. 2 The Unified Power System of the Russian Federation
      3. 3 Restructuring of Russia’s Electricity Industry
      4. 4 The Privatization Process: Toward the Reconsolidation of State Ownership?
      5. 5 The Liberalization Reform: Toward the Reregulation of Liberalized Prices?
      6. 6 Transition Toward Low Carbon Electricity Production
      7. 7 Conclusion
      8. Acknowledgments
      9. References
    3. Chapter 17. Not Seeing the Wood for the Trees? Electricity Market Reform in India
      1. 1 Introduction
      2. 2 Background and Evolution of India’s Electricity Market
      3. 3 Laying the Foundations for a Competitive Market
      4. 4 Impact of Reforms and the Development of Electricity Markets in India
      5. 5 Opportunities for Markets in Renewable Energy—A New Beginning?
      6. 6 Conclusion
      7. References
    4. Chapter 18. Reform Postponed: The Evolution of China’s Electricity Markets
      1. 1 Introduction
      2. 2 Reforms Between 1997 and 2002
      3. 3 Further Reforms Between 2002 and 2005
      4. 4 Changing Priorities Between 2005 and 2012
      5. 5 Conclusions and Outlook
      6. References
  13. Part IV: The Evolution of Electricity Markets in Australasia
    1. Chapter 19. Evolution of Australia’s National Electricity Market
      1. 1 Introduction
      2. 2 The Australian Electricity Supply Industry
      3. 3 Structural, Institutional, and Regulatory Reforms
      4. 4 Design and Performance of the NEM
      5. 5 Unfinished and Unresolved Areas of Reform
      6. 6 Greenhouse Gas Mitigation Policies
      7. 7 Conclusion
      8. Acknowledgments
    2. Chapter 20. Is Electricity Industry Reform the Right Answer to the Wrong Question? Lessons from Australian Restructuring and Climate Policy
      1. 1 Introduction
      2. 2 Electricity Industry Objectives and Restructuring
      3. 3 The Australian Electricity Industry: Microeconomic Reform Versus Ecological Sustainable Development
      4. 4 The Australian NEM
      5. 5 Has Australian Electricity Industry Restructuring Directly Assisted Environmental Objectives?
      6. 6 Has the NEM Effectively Facilitated External Climate Policies?
      7. 7 Has Australian Electricity Restructuring Inherently Worked Against Improved Environmental Outcomes?
      8. 8 Possible Ways Forward for Australia
      9. 9 Conclusion
      10. References
    3. Chapter 21. Weak Regulation, Rising Margins, and Asset Revaluations: New Zealand’s Failing Experiment in Electricity Reform
      1. 1 Introduction
      2. 2 Background: System Description and History
      3. 3 Industry Restructuring Since 1986
      4. 4 Outcomes Over the Reform Period
      5. 5 Conclusion
      6. References
    4. Chapter 22. The Korean Electricity Market: Stuck in Transition
      1. 1 Introduction
      2. 2 Overview of Korea’s Electricity Industry
      3. 3 Restructuring of Korea’s Electricity Industry
      4. 4 Achievements and Issues
      5. 5 Conclusion
      6. References
    5. Chapter 23. After Fukushima: The Evolution of Japanese Electricity Market
      1. 1 Introduction
      2. 2 Historical Development of Japanese Electricity Sector
      3. 3 After Fukushima: Innovative Strategy for Energy and the Environment
      4. 4 Continued Reform of the Electric Power System
      5. 5 Conclusion
      6. References
    6. Chapter 24. The Singapore Electricity Market: From Partial to Full Competition
      1. 1 Introduction
      2. 2 The National Electricity Market of Singapore
      3. 3 The Pricing Structure Under Deregulation
      4. 4 Market Performance and the Way Forward
      5. 5 Conclusion
      6. References
    7. Chapter 25. Market Design for the Integration of Variable Generation
      1. 1 Introduction
      2. 2 The Importance of Fast Markets
      3. 3 The Importance of Large Markets
      4. 4 Accurate Price Signals
      5. 5 Efficient Ancillary Services Markets
      6. 6 Gross Pool Single Platform Markets
      7. 7 Conclusion
      8. References
  14. Epilogue
    1. Electricity Reforms 20 Years Later: The Five Big Unforeseen Developments
    2. First Big Unforeseen: Generation Mix
    3. Second Big Unforeseen: Network Neutrality
    4. Third Big Unforeseen: Market Design
    5. Fourth Big Unforeseen: Market Integrity
    6. Fifth Big Unforeseen: Dual Fuel Complementarity
    7. A Sixth in the Big 5?
    8. Acknowledgments
  15. Index

Product information

  • Title: Evolution of Global Electricity Markets
  • Author(s):
  • Release date: June 2013
  • Publisher(s): Academic Press
  • ISBN: 9780123979063