ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of...
DESCRIPTION
TRANSCRIPT
![Page 1: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/1.jpg)
Energy Economics
![Page 2: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/2.jpg)
• Presentations
![Page 3: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/3.jpg)
• Literature
– Taylor, G., Tanton, T. 2012. The hidden cost of wind electricity. American tradition institute. http://www.atinstitute.org/wp-content/uploads/2012/12/Hidden-Cost.pdf
– Hirth, L. 2013. The optimal share of variable renewables. How the variabiity of wind and solar power affects their welfare-optimizing deployment. FEEM Working Paper 90.2013. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2351754
– Kirchen. Chapter 1
![Page 4: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/4.jpg)
• How expensive are renewables after all?
![Page 5: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/5.jpg)
The technology behind crystalline silicon solar cells has profited from extensive developments in the multi-billion-dollar microelectronics industry.
About 20 years ago, a kilowatt of solar energy cost about 50 euro cents ($0.69) to produce, today in Germany it's about 10 euro cents - while in sunny regions it's between 5 and 8 euro cents.
So worldwide, we're totally competitive with, and often even cheaper than, fossil fuels.
http://www.dw.de/at-the-floodgates-of-a-solar-energy-boom/a-17259267
Professor Eicke R. Weber is the Director of the Fraunhofer Institute for Solar Energy Systems ISE and professor of physics/solar energy at the Department of Mathematics and Physics and the Department of Engineering respectively at the University of Freiburg, Germany.
http://www.ise.fraunhofer.de/en/about-us/director-and-division-directors/prof.-eicke-weber
Can this be true?
Why give subsidies still?
![Page 6: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/6.jpg)
• http://www.cityam.com/article/1392944530/how-free-markets-are-making-solar-energy-feasible-without-subsidies
![Page 7: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/7.jpg)
http://cleantechnica.com/2013/12/16/solar-gird-parity-infographic-important-addendum/
![Page 8: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/8.jpg)
http://solarcellcentral.com/cost_page.html
![Page 9: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/9.jpg)
2013
€1-2/W
Capital costs of PV have fallen with 85%-90% since 1998
(from $12 -> $1-2 per Wpc)
![Page 10: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/10.jpg)
![Page 11: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/11.jpg)
http://www.ise.fraunhofer.de/en/publications/veroeffentlichungen-pdf-dateien-en/studien-und-konzeptpapiere/study-levelized-cost-of-electricity-renewable-energies.pdf/view
![Page 12: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/12.jpg)
• Refinements:1. Explicitly model intermittent (solar+wind) +
backup
2. Model the value of electricity produced by intermittent generation
![Page 13: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/13.jpg)
1. Explicitly model intermittent (solar+wind) + backup
![Page 14: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/14.jpg)
• Wind and solar should better be seen as:– Wind and solar + gas backup (round 90%)– Wind and solar + coal backup (round 90%)
![Page 15: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/15.jpg)
• Taylor, G., Tanton, T. 2012. The hidden cost of wind electricity. American tradition institute. http://www.atinstitute.org/wp-content/uploads/2012/12/Hidden-Cost.pdf
![Page 16: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/16.jpg)
Source: Energy Information Administration 2012 Annual Energy Outlook
![Page 17: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/17.jpg)
![Page 18: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/18.jpg)
![Page 19: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/19.jpg)
![Page 20: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/20.jpg)
Source: Energy Information Administration 2012 Annual Energy Outlook
![Page 21: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/21.jpg)
• This report has shown that the cost wind electricity is not approaching parity with conventional sources, and is unlikely to reach parity – unless the price of natural gas, the price of
coal and the capital cost of nuclear facilities were all to increase dramatically.
![Page 22: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/22.jpg)
• Study applies to US– 3% of energy generated by wind
• Germany– Has higher wind penetration– 7~8% of energy generated by wind
• What is the effect of an increase in wind penetration on costs?
![Page 23: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/23.jpg)
2. Model the value of electricity produced by intermittent generation
![Page 24: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/24.jpg)
• Hirth, L. 2013. The optimal share of variable renewables. How the variabiity of wind and solar power affects their welfare-optimizing deployment. FEEM Working Paper 90.2013.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2351754
![Page 25: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/25.jpg)
![Page 26: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/26.jpg)
Levelized costs:
Levelized value:
Where (exact):
Over lead times Over timesOver places
Approximation
![Page 27: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/27.jpg)
![Page 28: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/28.jpg)
• We define profile costs as the price spread between the load-weighted and wind-weighted day-ahead electricity price for all hours during one year. Profile costs arise because of two reasons. On the one hand, demand and VRE generation are often (positively or negatively) correlated. A positive correlation, for example the seasonal correlation of winds with demand in Western Europe, increases the value of wind power, leading to negative profile costs.
• On the other hand, at significant installed capacity, wind “cannibalizes” itself because the extra electricity supply depresses the market price whenever wind is blowing. In other words, the price for electricity is low during windy hours when most wind power is generated. Fundamentally, profile costs exist because electricity storage is costly, recall physical constraint i). A discussion of profile costs and quantitative estimates are provided by Lamont (2008), Borenstein (2008), Joskow (2011), Mills & Wiser (2012), Nicolosi (2012), Hirth (2013), and Schmalensee (2013).
![Page 29: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/29.jpg)
• wind “cannibalizes” itself because the extra electricity supply depresses the market price whenever wind is blowing
![Page 30: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/30.jpg)
Remember how wind was cannabalized in the model of lecture W07.2F
![Page 31: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/31.jpg)
• Profile cost: wind produces most when the price is low
![Page 32: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/32.jpg)
![Page 33: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/33.jpg)
![Page 34: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/34.jpg)
• Profile cost: wind produces most when the price is low• Balancing cost: forecasting errors
– wind produces is “out-of-balance”, produces more or less than promised
– Cycling costs of plants
![Page 35: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/35.jpg)
• Profile cost: wind produces most when the price is low• Balancing cost: forecasting errors
– wind produces is “out-of-balance”, produces more or less than promised
– Cycling costs of plants
![Page 36: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/36.jpg)
European ClimateFoundation 2050:
• Increase from 34 GW to 127 GW
• 400% increase
The future of the EU transmission network
Authors wont model the losses due to location (grid costs) were not modeled
![Page 37: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/37.jpg)
• Profile cost: wind produces most when the price is low• Balancing cost: forecasting errors
– wind produces is “out-of-balance”, produces more or less than promised
– Cycling costs of plants
• Grid costs: wind produces far away from demand– Cost of additional transmission
![Page 38: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/38.jpg)
• Cost change with penetration (cannabilization effect)
![Page 39: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/39.jpg)
![Page 40: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/40.jpg)
![Page 41: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/41.jpg)
• So far are theoretical models, what do the numbers tell us?– Use of a dispatch model, feeding realistic data– Northwestern Europe: Germany, Belgium,
Poland, The Netherlands, and France
![Page 42: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/42.jpg)
3% 20%
Wind
![Page 43: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/43.jpg)
Wind
![Page 44: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/44.jpg)
If wind blew constantly
If wind was variable but perfectly predictable
True situation
Note that losses due to location (grid costs) were not modeled
LCoE use the simplification that wind blows constantly.
This simplification seems to explains the wide gap in the debate on the usefulness of wind.
![Page 45: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/45.jpg)
Assuming 30% fall in wind cost wrt today
![Page 46: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/46.jpg)
• What is remarkable about this curve?• Optimal wind share with doubling of:
– Coal price -> increases
– Gas price -> decreases
![Page 47: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/47.jpg)
• Doubling coal prices -> optimal wind up by 5% points
• Halving gas prices (“shale gas”) -> optimal wind down
• Doubling gas prices -> optimal wind down.
![Page 48: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/48.jpg)
• Doubling coal prices -> optimal wind up by 5% pointsfive percentage points (Figure 17).
• Lowering gas prices by half (“shale gas”) has a similarly expected effect,dramatically lowering optimal wind deployment.
• Surprisingly however, doubling gas prices reduces the optimal wind share.– As in the case of CO2 pricing, the reason for this
seemingly counterintuitive result can be found in the capital stock response to the price shock. Higher gas prices induce investments in hard coal, which has lower variable costs, reducing the value of wind power and its optimal deployment.
![Page 49: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/49.jpg)
Solar
• Even at 60% cost reduction, the optimal solar share is below 4% in all but very few cases.
• Reason: the marginal value of solar power drops steeply with penetration,
– Even more so than wind. Why?
– Because solar radiation is concentrated in few hours
• In line with earlier studies (Nicolosi 2012, Mills & Wiser 2012, Hirth 2013).
Now: €1-2/W
Hirth + 60% cost reduction:€0.6/WHirth uses€1.6/W
![Page 50: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/50.jpg)
2013
€1-2/W
![Page 51: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/51.jpg)
http://www.bp.com/en/global/corporate/about-bp/energy-economics/statistical-review-of-world-energy-2013.html
![Page 52: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/52.jpg)
![Page 53: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/53.jpg)
![Page 54: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/54.jpg)
• Energy revolutions
![Page 55: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/55.jpg)
http://vaclavsmil.com/wp-content/uploads/scientificamerican0114-52.pdf
![Page 56: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/56.jpg)
• Coal supplies more than 5 percent of energy– 1840
• fossil fuels (coal) surpasses use of biomass (wood and charcoal)– 1885 USA– 1875 France– 1901 Japan – 1930 U.S.S.R– 1965 China – 1970 India
![Page 57: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/57.jpg)
• Oil supplies more than 5 percent of energy– 1915
• Oil surpasses use coal– 1964
![Page 58: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/58.jpg)
Organization of electricity markets
![Page 59: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/59.jpg)
• Organization of electricity markets1. Liberalization
2. Transmission pricing (Nodal versus Zonal)
![Page 60: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/60.jpg)
• Organization of electricity markets1. Liberalization
Kirchen. Chapter 1
![Page 61: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/61.jpg)
![Page 62: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/62.jpg)
Allow Independent Power Producers (IPP)(US: PURPA law 1978)
![Page 63: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/63.jpg)
![Page 64: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/64.jpg)
Add wholesale competition
![Page 65: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/65.jpg)
Add retail competition
Close to the present model in EU
(but wholesale market and transmission system are separate)
![Page 66: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/66.jpg)
Unbundling was a process over several years
S. van Koten, A. Ortmann / Energy Economics 30 (2008) 3128–3140
![Page 67: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/67.jpg)
![Page 68: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/68.jpg)
![Page 69: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/69.jpg)
Unbundling was a process over several years
S. van Koten, A. Ortmann / Energy Economics 30 (2008) 3128–3140
![Page 70: Ee w09.1 m_ ee_ 4. renewables and the electricity industry (climate change) & organization of electricity markets_ liberalisation, competition](https://reader038.vdocuments.us/reader038/viewer/2022110303/54c7fac84a79594f2e8b461f/html5/thumbnails/70.jpg)
Unbundling was a process over several years
S. van Koten, A. Ortmann / Energy Economics 30 (2008) 3128–3140http://www.cerge-ei.cz/pdf/pb/PB13.pdf