Rahmat Poudineh

Head of Electricity Research

Rahmat joined the institute in November 2014 to design and setup the electricity research programme. He is Senior Research Fellow and, since 2019, Director of Research. Rahmat is an economist and engineer by training, with several years of experience in the economics and regulation of the electricity sector. He has published numerous peer-reviewed academic articles on a number of key issues relating to the energy  sector, including: network regulation, electricity market design, power system flexibility, renewable support schemes, gas and power interdependence,  power sector reform in developing countries, and the implications of the energy transition for oil companies. He has also co-authored a book on ‘The Economics of Offshore Wind Power: Challenges and Policy Considerations’. Rahmat’s main research interest lies in the design of markets and regulation for future decarbonised energy systems.

Rahmat has been involved in a number of policy oriented projects, including a European Commission funded project on developing a regulatory framework to ensure the security of the European power grid against natural, accidental and malicious damage. He also led a project on sustainable electricity pricing for Tanzania funded by International Growth Centre (IGC).

Rahmat holds a BSc in aerospace engineering from Amirkabir University of Technology (Tehran Polytechnic), a graduate diploma in economics from Queen Mary University of London, MSc in energy economics and policy from University of Surrey, and PhD in energy economics from Durham University, where he received the best thesis prize for his doctoral dissertation on economic regulation of electricity distribution networks.

Areas of Expertise
Energy sector reform and market liberalisation, Regulatory economics, Theoretical and applied microeconomics, Electricity market design, Electricity networks regulation, Renewable policy, Energy technology and Innovation

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                    [post_content] => As the world races to decarbonize its energy systems, the choice between transmitting green energy as electrons through high-voltage direct current (HVDC) lines or as molecules via hydrogen pipelines emerges as a critical decision. This paper considers this pivotal choice and compares the techno-economic characteristics of these two transmission technologies.

Hydrogen pipelines offer the advantage of transporting larger energy volumes, but existing projects are dwarfed by the vast networks of HVDC transmission lines. Advocates for hydrogen pipelines see potential in expanding these networks, capitalizing on hydrogen’s physical similarities to natural gas and the potential for cost savings. However, hydrogen’s unique characteristics, such as its small molecular size and compression requirements, present construction challenges. On the other hand, HVDC lines, while less voluminous, excel in efficiently transmitting green electrons over long distances. They already form an extensive global network, and their efficiency makes them suitable for various applications. Yet, intermittent renewable energy sources pose challenges for both hydrogen and electricity systems, necessitating solutions like storage and blending.

Considering these technologies as standalone competitors belies their complementary nature. In the emerging energy landscape, they will be integral components of a complex system. Decisions on which technology to prioritize depend on factors such as existing infrastructure, adaptability, risk assessment, and social acceptance. Furthermore, while both HVDC lines and hydrogen pipelines are expected to proliferate, other factors such as market maturity of the relevant energy vector, government policies, and regulatory frameworks around grid development and utilization are also expected to play a crucial role. Energy transition is a multifaceted challenge, and accommodating both green molecules and electrons in our energy infrastructure may be the key to a sustainable future. This paper’s insights underline the importance of adopting a holistic perspective and recognising the unique strengths of each technology in shaping a resilient and sustainable energy ecosystem.
                    [post_title] => Hydrogen pipelines vs. HVDC lines: Should we transfer green molecules or electrons?
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The role of distributed energy resources (DERs) in future power systems is becoming increasingly important due to the ongoing transformation of the electricity sector towards carbon neutrality and higher decentralization. As changes in the demand side continue, such as the adoption of electric vehicles (EVs) and heat pumps, and the connection of DERs to the grid by prosumers and aggregators, coordination between supply- and demand-side resources becomes more critical.

Both developed and developing countries have a strong incentive to deploy DERs. In developed countries, there is a growing demand for cleaner and more sustainable energy sources, as well as a desire to reduce dependence on centralized power grids. As renewable energy sources like solar and wind power continue to gain a larger share of the energy supply, there is a growing need for an optimized and flexible power system that can effectively manage the variability of these sources.

In developing countries, the deployment of DERs has the potential not only to reduce greenhouse gas emissions but also to improve energy access, promote energy security, and mitigate the risks associated with importing fossil fuels. This is why these economies have started to deploy growing DER volumes, particularly distributed solar, battery energy storage, and EV charging load.

Central to this paper is our exploration into the dynamics, opportunities, and challenges of implementing DERs in various energy contexts, particularly underscoring the disparities and commonalities between developed and developing regions. The principal research objective is to unearth the strategic, regulatory, and technological underpinnings that have facilitated the proliferation of DERs in pioneering regions such as Australia, the UK, Germany, and California, and subsequently, to extract actionable insights and tailored recommendations for accelerating the integration of DERs in developing countries. By analyzing the distinct pathways, policy landscapes, and outcomes realized by these frontrunner regions, we aim to distill lessons and strategies that can pragmatically be adapted and applied to the nuanced energy ecosystems prevalent in developing countries. These recommendations cover a range of areas, including end-user tariffs, network access pricing, addressing fixed system costs in the presence of decentralized resources, DER aggregation, enabling DER participation in multiple markets to maximize revenue, reforming electricity distribution utilities, and establishing coordination mechanisms between transmission and distribution system operators (DSOs). The lessons learned can inform developing countries’ efforts to integrate DERs and transition to a more sustainable energy future.

[post_title] => Harnessing the Power of Distributed Energy Resources in Developing Countries: What Can Be Learned from the Experiences of Global Leaders? [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => harnessing-the-power-of-distributed-energy-resources-in-developing-countries-what-can-be-learned-from-the-experiences-of-global-leaders [to_ping] => [pinged] => [post_modified] => 2023-10-26 11:05:28 [post_modified_gmt] => 2023-10-26 10:05:28 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=46670 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [2] => WP_Post Object ( [ID] => 46606 [post_author] => 974 [post_date] => 2023-10-06 10:59:24 [post_date_gmt] => 2023-10-06 09:59:24 [post_content] =>

The future of the European hydrogen supply industry lies at the heart of the European Union’s energy policy, demanding the reconciliation of conflicting interests in liberalization, sustainability, and security of supply. This paper analyses the unique challenges faced by the emerging hydrogen economy, including the lack of an established market, transportation and storage infrastructure, uncertainty about demand and supply, and the manufactured nature of hydrogen production. The main question addressed is how the EU can create a regulatory framework that enables the expansion of the hydrogen economy within the time frame required to meet the net-zero target, while ensuring a well-functioning integrated market.

The paper argues that directly copying the liberalization model used in the gas and electricity sectors may not be suitable for hydrogen, and could lead to delays and uncertainties. Instead, it suggests combining existing provisions from natural gas and electricity regulations with novel elements tailored to the hydrogen supply industry. The first set of recommendations involves leveraging existing regulations to ensure non-discriminatory access to future hydrogen networks, fostering competition, and enhancing system resilience. Additionally, established instruments and institutions for European coordination should be extended to include hydrogen, promoting cross-border cooperation and integration between hydrogen and electricity. The paper also recommends new regulatory guidelines to address the unique characteristics of the hydrogen industry. It suggests aligning unbundling rules for hydrogen transport infrastructure with sustainability and security objectives, and exploring synergies with existing natural gas infrastructure while ensuring transparency and fair competition. Given the limited cost recovery potential of the nascent hydrogen market infrastructure, policymakers may need to depart temporarily from strictly cost-reflective tariff models, exploring alternative methods such as merged tariffs across different energy carriers, and public interventions such as grants, subsidies, or guarantees, to ensure sufficient infrastructure investments.

Overall, the proposed approach aims to create a robust regulatory framework that facilitates the creation of the European hydrogen market while addressing the diverse goals of the EU’s energy policy.

[post_title] => Regulating the future European hydrogen supply industry: A balancing act between liberalization, sustainability, and security of supply? [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => regulating-the-future-european-hydrogen-supply-industry-a-balancing-act-between-liberalization-sustainability-and-security-of-supply [to_ping] => [pinged] => [post_modified] => 2023-10-06 11:11:14 [post_modified_gmt] => 2023-10-06 10:11:14 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=46606 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [3] => WP_Post Object ( [ID] => 46155 [post_author] => 974 [post_date] => 2023-05-11 08:34:25 [post_date_gmt] => 2023-05-11 07:34:25 [post_content] => Electricity market design has become a highly debated issue in recent times, especially in Europe, where the surge in wholesale electricity spot prices can be attributed to the excessively high costs of natural gas. Many people believe that the root cause lies in the market design's emphasis on determining a single market clearing price based on the most expensive resource needed to meet demand, often natural gas. In addition to the immediate energy crisis and short-term challenges, analysts are increasingly worried that the current market design, if continued, would drive down wholesale electricity prices to such low levels that new investments would become unprofitable, mainly due to the widespread adoption of zero-marginal-cost renewable electricity. The long-term consequences of this situation have now become a vital part of ongoing discussions in various regions, including the United Kingdom where the government has introduced the Review of Electricity Market Arrangements (REMA). The articles presented in this issue of the Oxford Energy Forum delve into a debate surrounding the topic of electricity market design. Recognizing the pressing need to confront the dual challenges of the short-term energy crisis and the long-term imperative of decarbonization, the contributors engage in discussions to explore the various ways in which the electricity market can be reformed. [post_title] => Electricity market design during the Energy Transition and the Energy Crisis - Issue 136 [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => electricity-market-design-during-the-energy-transitions-and-the-energy-crisis-issue-136 [to_ping] => [pinged] => [post_modified] => 2023-05-16 05:15:00 [post_modified_gmt] => 2023-05-16 04:15:00 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=46155 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [4] => WP_Post Object ( [ID] => 46030 [post_author] => 974 [post_date] => 2023-04-04 11:00:26 [post_date_gmt] => 2023-04-04 10:00:26 [post_content] => If a hydrogen economy is to become a reality, along with efficient and decarbonized production and adequate transportation infrastructure, deployment of suitable hydrogen storage facilities will be crucial. This is because, due to various technical and economic reasons, there is a serious possibility of an imbalance between hydrogen supply and demand. Hydrogen storage could also be pivotal in promoting renewable energy sources and facilitating the decarbonization process by providing long duration storage options, which other forms of energy storage, such as batteries with capacity limitations or pumped hydro with geographical limitations, cannot meet. However, hydrogen is not the easiest substance to store and handle. Under ambient conditions, the extremely low volumetric energy density of hydrogen does not allow for its efficient and economic storage, which means it needs to be compressed, liquefied, or converted into other substances that are easier to handle and store. Currently, there are different hydrogen storage solutions at varying levels of technology, market, and commercial readiness, with different applications depending on the circumstances. This paper evaluates the relative merits and techno-economic features of major types of hydrogen storage options: (i) pure hydrogen storage, (ii) synthetic hydrocarbons, (iii) chemical hydrides, (iv) liquid organic hydrogen carriers, (v) metal hydrides, and (vi) porous materials. The paper also discusses the main barriers to investment in hydrogen storage and highlights key features of a viable business model, in particular the policy and regulatory framework needed to address the primary risks to which potential hydrogen storage investors are exposed. [post_title] => Hydrogen storage for a net-zero carbon future [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => hydrogen-storage-for-a-net-zero-carbon-future [to_ping] => [pinged] => [post_modified] => 2023-04-04 11:49:32 [post_modified_gmt] => 2023-04-04 10:49:32 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=46030 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [5] => WP_Post Object ( [ID] => 45424 [post_author] => 111 [post_date] => 2022-11-03 12:19:53 [post_date_gmt] => 2022-11-03 12:19:53 [post_content] => This issue of the Oxford Energy Forum (OEF) is dedicated to the future of energy networks in a decarbonised world. The net-zero carbon target will result in a significant change in energy systems with important implications for existing energy networks. Electricity networks are going to bear the brunt of energy sector transformation because of their role in the decarbonization of the transport, building and industrial sectors. The increased variability of supply and demand along with penetration of distributed energy resources can create new constraints in electricity networks and thus necessitate more efficient utilization of existing grid assets, new grid investments, and in some cases even new overall grid and electricity market designs. The future of natural gas networks, however, is highly uncertain especially at the low-pressure distribution level. An idea is to repurpose existing gas infrastructures to transport hydrogen but that is not straightforward. There are other energy networks such as district heating and cooling which although currently they have a little energy demand market share globally, their share is expected to increase because of their advantage over individual heating/cooling systems in high-density built environments. These all mean that it is necessary to understand how best to design, regulate, integrate and operate existing and emerging energy networks in order to lower the costs and challenges of achieving decarbonisation targets. 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Development of a hydrogen economy will depend on adequate transportation infrastructure. Most discussion of hydrogen transportation to date has focused on adapting natural gas networks, but the issue is more complex. Hydrogen can also be transported by dedicated new pipelines as well as other transportation networks (e.g., truck, rail, and marine transport) and even produced on-site by transferring electrical energy instead of hydrogen. In future, end users’ ability to switch from one form of delivery to another will result in new linkages between these diverse infrastructures in the sense that energy flows of different sectors will become more interdependent, and the widespread use of hydrogen is likely to strengthen this. This raises the fundamental question of how to prevent inefficiency (such as unnecessarily high hydrogen infrastructure costs or suboptimal utilization of gas and power networks) and redundancy in the future hydrogen transport infrastructure. This task is made more challenging by technological uncertainty, the unpredictability of future supply and demand for hydrogen, network externality effects, and investment irreversibility of grid-based infrastructures. Meeting these challenges entails coordinating investments in hydrogen transportation infrastructures across all modes in order to establish a cross-sectoral hydrogen polygrid. This paper analyses the strengths and shortcomings of three possible approaches—centrally coordinated, market-based, and regulatory—to this task. Finally, the paper offers policy recommendations on establishing a coherent institutional framework governing investment in the future hydrogen polygrid.

[post_title] => PolyGrid 2050: Integrating hydrogen into the European energy transfer infrastructure landscape [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => polygrid-2050-integrating-hydrogen-into-the-european-energy-transfer-infrastructure-landscape [to_ping] => [pinged] => [post_modified] => 2022-10-26 13:25:06 [post_modified_gmt] => 2022-10-26 12:25:06 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=45383 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [7] => WP_Post Object ( [ID] => 45206 [post_author] => 111 [post_date] => 2022-08-30 11:18:20 [post_date_gmt] => 2022-08-30 10:18:20 [post_content] =>

As a manufactured fuel, hydrogen can be produced in a decentralized way in most countries around the world. This means, even in a net zero economy, the global trade of hydrogen could look quite different to the current international trade in fossil fuels, including natural gas. With further declines in the costs of renewable electricity and electrolyzers, regions which have lower cost renewable electricity may develop an economic advantage in the production of low-cost hydrogen, but for hydrogen to become a globally traded commodity, the cost of imports needs to be lower than the cost of domestic production. Unlike oil or natural gas, transporting hydrogen over long distances is not an easy task. Hydrogen liquefaction is an extremely energy-intensive process, while maintaining the low temperature required for long-distance transportation and storage purposes results in additional energy losses and accompanying costs. The upside is that hydrogen can be converted into multiple carriers that have a higher energy density and higher transport capacity and can potentially be cheaper to transport over long distances. Among the substances currently identified as potential hydrogen carriers suitable for marine shipping, liquid ammonia, the so-called ‘liquid organic hydrogen carriers’ in general (toluene-methylcyclohexane (MCH) in particular), and methanol have received the most attention in recent years. This paper compares the key techno-economic characteristics of these potential carriers with that of liquified hydrogen in order to develop a better understanding of the ways in which hydrogen could be transported overseas in an efficient manner. The paper also discusses other factors, beyond techno-economic features, that may affect the choice of optimum hydrogen carrier for long distance transport, as well as the global trade, of hydrogen.

[post_title] => Global trade of hydrogen: what is the best way to transfer hydrogen over long distances? [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => global-trade-of-hydrogen-what-is-the-best-way-to-transfer-hydrogen-over-long-distances [to_ping] => [pinged] => [post_modified] => 2022-08-31 05:33:44 [post_modified_gmt] => 2022-08-31 04:33:44 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=45206 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [8] => WP_Post Object ( [ID] => 44853 [post_author] => 111 [post_date] => 2022-05-04 13:18:05 [post_date_gmt] => 2022-05-04 12:18:05 [post_content] =>

As infrastructures that connect the energy source with the energy use, energy networks constitute a crucial element of national and global energy systems. They also play a key role in helping with balancing supply and demand, thus ensuring that energy is not only available in the right places but also at the right time. Energy transition will have significant impacts, though not necessarily in the same way, on existing energy networks, for example, electricity and natural gas grids, and might lead to the growth of new energy carrier systems, such as district heating and cooling and the deployment of new infrastructures to support the use of hydrogen. Understanding the implications of energy transition for energy networks, and the ways in which these infrastructures should adapt to the challenges of decarbonization, is important to achieve net-zero carbon objectives. This paper explores some of the key issues faced by electricity transmission and distribution networks; natural gas networks; and future hydrogen, heating, and cooling networks in the transition of energy systems. Also, as future decarbonized energy systems are likely to exhibit significantly more interaction between different parts of the system, this paper explores possible approaches to utilizing the synergies between energy networks and benefiting from their integrated operation to lower the costs and challenges of decarbonization.

[post_title] => Energy Networks in the Energy Transition Era [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => energy-networks-in-the-energy-transition-era [to_ping] => [pinged] => [post_modified] => 2022-05-04 13:21:07 [post_modified_gmt] => 2022-05-04 12:21:07 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=44853 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [9] => WP_Post Object ( [ID] => 44580 [post_author] => 111 [post_date] => 2022-02-17 10:58:54 [post_date_gmt] => 2022-02-17 10:58:54 [post_content] => This paper proposes a distributed framework for vehicle grid integration taking into account the communication and physical networks. To this end, we model the electric vehicle behavior that includes times of departure and arrival, state of charge, required energy, and its objectives, e.g., avoid battery degradation and willingness to pay. Next, we formulate the centralised day ahead distribution market which explicitly represents the physical system, supports unbalanced three phase networks with delta and wye connections, and incorporates the charging needs of electric vehicles under a uni- and a bi-directional charging scheme. The solution of the centralised market requires knowledge of electric vehicle information in terms of desired energy, departure and arrival times that electric vehicle owners are reluctant in providing. Moreover, the computational effort required to solve the day ahead distribution market in cases of numerous electric vehicles is very intensive. As such, we propose a distributed solution of the day ahead distribution market clearing mechanism over a time-varying communication network where no private information is exchanged. We also incorporate uncertainty of electric vehicle charging needs and provide guarantees on the probability of constraint satisfaction. We illustrate the proposed vehicle grid integration framework through the 13-bus, 33-bus, and 141-bus distribution feeders. Apostolopoulou, D., Poudineh, R. and Sen, A., 2022. Distributed Vehicle to Grid Integration Over Communication and Physical Networks With Uncertainty Effects. IEEE Transactions on Smart Grid, 13(1), pp.626-640. [post_title] => Distributed Vehicle to Grid Integration Over Communication and Physical Networks With Uncertainty Effects [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => distributed-vehicle-to-grid-integration-over-communication-and-physical-networks-with-uncertainty-effects [to_ping] => [pinged] => [post_modified] => 2022-02-17 10:58:54 [post_modified_gmt] => 2022-02-17 10:58:54 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=44580 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [10] => WP_Post Object ( [ID] => 44506 [post_author] => 111 [post_date] => 2022-01-24 11:56:13 [post_date_gmt] => 2022-01-24 11:56:13 [post_content] =>

The higher cost of green hydrogen in comparison to its competitors is the most important barrier to its increased use. Although the cost of renewable electricity is considered to be the key obstacle, challenges associated with electrolysers are another major issue that have important implications for the cost reduction of green hydrogen. This paper analyses the electrolysis process from technological, economic, and policy perspectives. It first provides a comparative analysis of the main existing electrolyser technologies and identifies key trade-offs in terms of cost, scarcity of materials used, technology readiness, and the ability to operate in a flexible mode (which enables them to be coupled with variable renewables generation). The paper then identifies the main cost drivers for each of the most promising technologies and analyses the opportunities for cost reduction. It also draws upon the experience of solar and wind power generation technologies with respect to gradual cost reduction and evaluates development paths that each of the main electrolyser technology types could take in the future. Finally, the paper elaborates on the policy mechanisms that could additionally foster cost reduction and the overall business development of electrolyser technologies.

[post_title] => Cost-competitive green hydrogen: how to lower the cost of electrolysers? [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => cost-competitive-green-hydrogen-how-to-lower-the-cost-of-electrolysers [to_ping] => [pinged] => [post_modified] => 2022-01-24 11:56:13 [post_modified_gmt] => 2022-01-24 11:56:13 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=44506 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [11] => WP_Post Object ( [ID] => 44329 [post_author] => 111 [post_date] => 2021-11-18 13:01:09 [post_date_gmt] => 2021-11-18 13:01:09 [post_content] =>

As the world’s third-biggest emitter of greenhouse gases, India has pledged to achieve net-zero carbon emissions by 2070. The electricity sector is at the forefront of decarbonisation initiatives and distributed energy resources (DERs) are expected to play a key role in enabling the country to eventually transition away from fossil fuel power generation (especially coal). DERs are physical or virtual assets that are located close to demand across the distribution grid, and can provide value to the power system, individual customers, or both. As the share of traditional flexible fossil fuel generation declines in the power mix, distributed generation, energy storage, and demand response will become important sources of system flexibility. Specifically, the rise of EVs (electric vehicles) and of electricity demand for cooling services provide significant opportunities for decentralized flexibility. However, the Indian power sector requires a range of reforms to bring it into line with the rise of the decentralization paradigm. These include in the areas of market architecture, coordination between transmission and distribution network operators, reforming the distribution sector and rationalisation of retail tariffs.

In terms of market architecture, the country needs to move towards a two-sided market in which both supply-side and demand-side resources can participate. This requires removing barriers to the entry of aggregators, investment in ICT infrastructure and distribution grid modernization, and the establishment of liquid short-term electricity markets, local flexibility markets, and ancillary service markets. Also, a more effective coordination mechanism between transmission and distribution network operators is needed to improve visibility and control over DERs and enable a better utilization of these resources for both local grid congestion management as well as national grid balancing. The more complex issues, however, lie in the distribution sector. The current scope of distribution licensees’ operation includes both network and retailing, which means that the state distribution companies (Discoms) will not benefit from customer-owned DERs; they thus have an incentive to resist their uptake. The State Discoms are also in poor financial health due to a range of factors such as poor management, non-cost reflective retail tariffs, and a high level of AT&C (aggregated technical and commercial) energy losses. This prevents them from investing in grid modernization and digitalization. Finally, retail tariffs in India are lower than the actual costs of supply for residential consumers; this makes investment in DERs uneconomic for this class of customers, whereas a higher rate incentivizes grid defection among C&I (commercial and industrial) customers, with consequences for the revenues of distribution utilities.

[post_title] => The Rise of Distributed Energy Resources: A Case Study of India’s Power Market [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => the-rise-of-distributed-energy-resources-a-case-study-of-indias-power-market [to_ping] => [pinged] => [post_modified] => 2021-11-18 13:01:09 [post_modified_gmt] => 2021-11-18 13:01:09 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=44329 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [12] => WP_Post Object ( [ID] => 43922 [post_author] => 111 [post_date] => 2021-08-03 16:47:15 [post_date_gmt] => 2021-08-03 15:47:15 [post_content] => Brazil’s current electricity market design heavily relies on auctions, long-term contracts, and central coordination mechanisms. Combining these instruments has proved to be effective in ensuring resource adequacy, a key policy objective. However, the implications of the dominance of the centrally coordinated auctions for long-term contracts are worth examining. This paper argues that the current market architecture may not represent the optimum long-term solution for a sustainable market as it ignores consumer preferences to drive investment decisions, transfers risks to consumers, has made the short-term market less relevant, and suffers from regulatory and design complexities. Michael Hochberg, Rahmatallah Poudineh, The Brazilian electricity market architecture: An analysis of instruments and misalignments, Utilites Policy  72 (2021)  [post_title] => The Brazilian electricity market architecture: An analysis of instruments and misalignments [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => the-brazilian-electricity-market-architecture-an-analysis-of-instruments-and-misalignments [to_ping] => [pinged] => [post_modified] => 2021-08-03 16:47:15 [post_modified_gmt] => 2021-08-03 15:47:15 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=43922 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [13] => WP_Post Object ( [ID] => 43886 [post_author] => 111 [post_date] => 2021-07-19 11:06:55 [post_date_gmt] => 2021-07-19 10:06:55 [post_content] => Traditionally, distribution networks were dimensioned to handle demand peaks which were driven by demand for heating in the winter and cooling in the summer. However, with the current decarbonisation strategy based on electrification, the distribution network infrastructure will have to evolve with increasing electricity demand from other sectors and with stronger emphasis on volatility and flexibility in both generation and demand. The ‘fit and forget approach’ to network access is unlikely to be suitable during the energy transition era. In this regard, a key challenge facing electricity distribution grids is how to efficiently integrate new and flexible grid users. In this paper we analyse the concepts of universal versus restricted network access as well as listed pricing versus market-based allocation of network access rights. Differentiating access can increase efficiency and under ideal circumstances, market-based allocations and listed prices can be equivalent. We discuss different dimensions of access and the design of products and market rules for market-based allocation of access to electricity distribution grids. Adequate design serves to balance the benefits of differentiation and market-based allocation with the related complexity, resulting transaction and the negative effects of market power. With restricted connection agreements on the rise and network operators buying back access as flexibility, the insights from this analysis accompany a current trend in electricity distribution grids and inform policy making and regulation. [post_title] => Market-based allocation and differentiation of access rights to network capacity in distribution grids [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => market-based-allocation-and-differentiation-of-access-rights-to-network-capacity-in-distribution-grids [to_ping] => [pinged] => [post_modified] => 2021-08-19 10:37:33 [post_modified_gmt] => 2021-08-19 09:37:33 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=43886 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [14] => WP_Post Object ( [ID] => 43446 [post_author] => 111 [post_date] => 2021-02-16 11:40:03 [post_date_gmt] => 2021-02-16 11:40:03 [post_content] => The learning curve concept, which relates historically observed reductions in the cost of a technology to the number of units produced or the capacity cumulatively installed, has been widely adopted to analyse the technological progress of renewable resources, such as solar PV and wind power, and to predict their future penetration. The observed relationship has often been used as an input to energy system models and a justification for public spending on R&D and enhancing the scale of the technology. Learning curves have a place in research, but in this paper we argue that analysts often apply the concept, or make related assumptions, uncritically in their analysis of the technology. We make three observations. First, cost reduction can be driven by factors not correlated with current output, implying other factors as drivers of long-term learning effects. Second, despite the empirical observations, the theoretical foundation for learning curves is insufficiently established. The concept relies on historical development of the technology, that is, the result will be accurate if the future holds a path-dependent trajectory, whereas in reality there is a possibility of future breakthroughs as well as technological stalemates. Third, an observable cost reduction of a component in a given generation technology does not necessarily correspond with the trend in the total cost of deploying that technology. For example, module costs currently constitute a much smaller share of the total cost of solar PV compared with a few years ago. If the module’s rate of cost decrease is applied to the total cost of solar PV, it is highly likely to result in an incorrect prediction of future diffusion. Learning curves were originally developed as an empirical tool to assess the effect of learning-by-doing in manufacturing, and the jump to analysis of country-level technological change in renewable energy is an extension that requires careful consideration. [post_title] => A critical assessment of learning curves for solar and wind power technologies [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => a-critical-assessment-of-learning-curves-for-solar-and-wind-power-technologies [to_ping] => [pinged] => [post_modified] => 2021-08-19 10:44:26 [post_modified_gmt] => 2021-08-19 09:44:26 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=43446 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [15] => WP_Post Object ( [ID] => 43353 [post_author] => 111 [post_date] => 2021-01-25 12:01:04 [post_date_gmt] => 2021-01-25 12:01:04 [post_content] => This paper examines electricity supply industry reform in Malaysia and analyses issues and options in relation to electricity market design, integrating distributed resources and incentivising large scale renewable energy deployment in this country. Since the 1990s, Malaysia has been in the process of restructuring its electricity sector with the aim of improving the efficiency, governance, and administration of the sector, maintaining/enhancing the security of electricity supply, and encouraging the growth of low-carbon technologies. The country has faced a number of challenges in all elements across the electricity supply chain and this led to the creation of the Malaysian Electricity Supply Industry (MESI 1.0) reform initiatives, aimed at awarding tenders to competitive independent power producers (IPPs), incentive-based regulation (IBR) with imbalance cost pass through (ICPT), accounting unbundling, and the gradual rationalization of gas subsidies. In the years following MESI 1.0 a range of new industry megatrends emerged– such as digitalization (smart energy network using digital technologies), decentralization (customer participation and integration of distributed resources), and electrification (increase in electricity demand due to electric vehicles and other appliances) –leading to further reform initiatives (MESI 2.0) to make the power sector more efficient, reliable, and sustainable. The paper addresses three main research questions:
  1. What is the most suitable reform model for the Malaysian electricity sector which will promote competition, security of supply, and sustainability while at the same time being compatible with the country’s own context and government objectives?
  2. How does decentralization (distributed generation, storage, demand response, and energy efficiency) affect the Malaysian electricity sector?
  3. How do renewable support schemes need to be designed and implemented in order to avoid or minimize distortion in the market?
The paper addresses each question in a separate chapter and makes detailed policy recommendations about electricity market design, integrating distributed resources and incentivising large scale renewable energy in Malaysia. [post_title] => Electricity supply industry reform and design of a competitive electricity market in Malaysia [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => electricity-supply-industry-reform-and-design-of-a-competitive-electricity-market-in-malaysia [to_ping] => [pinged] => [post_modified] => 2021-08-19 10:45:47 [post_modified_gmt] => 2021-08-19 09:45:47 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=43353 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [16] => WP_Post Object ( [ID] => 42358 [post_author] => 111 [post_date] => 2020-11-03 11:11:58 [post_date_gmt] => 2020-11-03 11:11:58 [post_content] =>

This paper analyses whether ammonia can be viewed as an economically efficient and technologically suitable solution that can address the challenge of large-scale, long-duration, transportable energy storage in the decarbonized energy systems of the future. It compares all types of currently available energy storage techniques and shows that ammonia and hydrogen are the two most promising solutions that, apart from serving the objective of long-term storage in a low-carbon economy, could also be generated through a carbon-free process. The paper argues that ammonia, as an energy vector of hydrogen, is preferable to pure hydrogen from economic, environmental, and technological perspectives. It then analyses the available ammonia generation techniques, identifying conditions under which zero-carbon ammonia makes sense economically, and briefly highlights policy prerequisites for such production to be attractive for investors. Given the current state of the industry, large-scale deployment of green ammonia is unlikely to happen without policy supports such as adequate carbon taxes and/or alternative incentives. In the absence of such policies, green ammonia is only likely to make small-scale advances in the energy system, in areas with extremely low-cost renewable energy production or a significant surplus of generated energy.

[post_title] => Ammonia as a storage solution for future decarbonized energy systems [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => ammonia-as-a-storage-solution-for-future-decarbonized-energy-systems [to_ping] => [pinged] => [post_modified] => 2021-08-23 14:30:35 [post_modified_gmt] => 2021-08-23 13:30:35 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=42358 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [17] => WP_Post Object ( [ID] => 42003 [post_author] => 111 [post_date] => 2020-10-21 11:04:01 [post_date_gmt] => 2020-10-21 10:04:01 [post_content] =>

Energy transition is driven by policies that require investment in long-term undertakings such as energy infrastructures and/or the pricing of environmental externalities such as carbon emissions. The efficiency of such policies, in terms of resource allocation, is usually evaluated through cost–benefit analysis (CBA). As benefits and costs extend over long time horizons, they are converted to present value using a measure of the social discount rate. The higher the value of the social discount rate, the greater the importance given to the present at the expense of the future. Furthermore, the discount rate plays a central role in establishing the speed at which energy transition policy should achieve its objectives. A key problem is that certain aspects of the individual’s economic behaviour – such as those concerning the long term as well as other intertemporal preferences – cannot be easily reflected in the cost–benefit approach and discounting mechanism. Moreover, the long-term financial implications of energy transition policy are not generationally neutral, and this is hardly ever taken into account when using a social discount rate in the evaluation of energy policies. The economic net present value – a mere aggregation of discounted benefits and costs – alongside the well-known limits of the theoretical framework, from which the discount rate stems, are unmanageable obstacles for the appraisal of the importance of wealth transfers that may occur among multiple generations during long-term initiatives such as energy transition. This all means that the criteria under which energy transition policies achieve efficiency need to better reflect the preferences of society, with respect to the compensation that is required to renounce immediate consumption for future benefit. Furthermore, the efficiency of transition policies is necessary but not sufficient, the distributional impact of these policies needs to be examined with the aim of minimizing intergenerational equity issues that may arise.

[post_title] => Social Discount Rate and the Energy Transition Policy [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => social-discount-rate-and-the-energy-transition-policy [to_ping] => [pinged] => [post_modified] => 2020-10-21 11:04:01 [post_modified_gmt] => 2020-10-21 10:04:01 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=42003 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [18] => WP_Post Object ( [ID] => 40896 [post_author] => 111 [post_date] => 2020-09-11 11:36:34 [post_date_gmt] => 2020-09-11 10:36:34 [post_content] => Kuwait has a high potential for utilizing meteorologically driven energy resources such as solar PV. However, understanding the extent to which the distinct climatic conditions in Kuwait, reflected in the ambient temperature and occurrence of sandstorms, affect the variability and uncertainty of solar PV output is crucial. This is because it allows power system planners to adopt appropriate measures to accommodate solar PV generation and thus minimize renewable energy curtailment and consequently opportunity costs. In this study, the performance of a 2000 MW solar PV plant operating under the weather conditions in Kuwait is simulated using a Monte Carlo approach. The results show, on average, the power generation is 13% lower in the summer compared with the spring when the temperature is milder and solar production peaks. However, the certainty of production is higher in the summer. Furthermore, the PV generation variability in the summer is of the same magnitude as the demand variability, whereas during winter months, it is approximately twice the demand variability on any given day of the year. Sandstorms with daily average PM10 concentration of less than 300 ppb lead to little to no reduction in daily total irradiation. However, day-long and severe sandstorms (PM10 2700 ppb or greater) reduce daily total irradiation by 57%. Generally, the largest reductions occur when high particulate matter concentrations coincide with peak hourly solar irradiance. Alshawaf, M., Poudineh, R. &  Alhajeri, N. S., 'Solar PV in Kuwait: The effect of ambient temperature and sandstorms on output variability and uncertainty', Renewable and Sustainable Energy Reviews, Volume 134, December 2020 [post_title] => Solar PV in Kuwait: The effect of ambient temperature and sandstorms on output variability and uncertainty [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => solar-pv-in-kuwait-the-effect-of-ambient-temperature-and-sandstorms-on-output-variability-and-uncertainty [to_ping] => [pinged] => [post_modified] => 2020-09-11 11:36:34 [post_modified_gmt] => 2020-09-11 10:36:34 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=40896 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [19] => WP_Post Object ( [ID] => 38973 [post_author] => 111 [post_date] => 2020-06-29 11:28:11 [post_date_gmt] => 2020-06-29 10:28:11 [post_content] => The Middle East and North Africa’s (MENA) resource-rich economies are pursuing two parallel strategies in their electricity sectors: (i) increasing and integrating renewables into their power generation mix to mitigate the impact of rising domestic oil and gas demand on their economies and boost hydrocarbon export capacities; and (ii) undertaking power sector reforms to attract investment in generation capacity and networks, remove subsidies, and improve operational efficiency. These goals imply that the design of reforms needs to be carried out with a view to a rising share of non-dispatchable resources. The lack of an integrated approach to simultaneously address these two strategies is likely to lead to several misalignments between renewables and various components of future electricity markets, as the share of intermittent resources increases in the generation mix. The key challenge is that the ‘ultimate model’ capable of reconciling these two goals is as yet unknown, and is still evolving, due to uncertainties around the development of technologies, institutions, and consumer preferences. Failure to find the right model is likely to frustrate reform efforts and governments may find themselves in need of making significant changes to the electricity market at later stages. For example, inadequate tariff structure design , following the removal of subsidies, could lead to difficulty in recovering the power systems’ fixed costs, and also to the regressive distribution of costs among ratepayers. Furthermore, introducing significant renewables without a proportionate increase in power system flexibility (both in generation and in the grid) typically leads to curtailment and/or lower system reliability. Moreover, integrating demand-side resources faces a significant hurdle when ownership and operation of the national electricity grid are not decoupled. The tension between liberalization and decarbonization in pioneering electricity markets, such as in the EU, has arisen partly because renewables were imposed upon a market designed for conventional fossil fuel electricity. Resource-rich MENA countries, by contrast, could design their electricity markets around the incorporation of renewables at the outset and tap into years of international experience gained through trial and error. Poudineh, R., A. Sen and B. Fattouh, ‘Electricity Markets in the Resource-Rich Countries of the MENA: Adapting for the Transition Era’, Economics of Energy & Environmental Policy. [post_title] => Electricity Markets in the Resource-Rich Countries of the MENA: Adapting for the Transition Era’ [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => electricity-markets-in-the-resource-rich-countries-of-the-mena-adapting-for-the-transition-era [to_ping] => [pinged] => [post_modified] => 2020-06-29 11:32:46 [post_modified_gmt] => 2020-06-29 10:32:46 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=38973 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [20] => WP_Post Object ( [ID] => 38652 [post_author] => 111 [post_date] => 2020-06-17 11:22:48 [post_date_gmt] => 2020-06-17 10:22:48 [post_content] => System security is a critical component of power system operation. The objective of operational security is to manage grid stability and to limit the interruption to customer service following a disturbance. The integration of inverter-based renewable generation technologies such as solar and wind in the generation mix has introduced new challenges for managing operational security. First, the intermittency inherent in renewable resources can impact on key power system parameters such as frequency and voltage. Second, renewables interface with the grid through power electronics rather than turbines, which means that the physical characteristics of turbine generation that have historically supported the stability of the grid are becoming scarce as the power system transitions away from fossil‑fuel based thermal generation. In this paper, using public good theory, we provide an economic characterisation of the system services necessary for power system security.  The analysis illustrates that, as opposed to a standard ‘public goods’ characterisation, system security products are better viewed as a basket of goods with differing economic characteristics that can also vary over space and time. The implications of these classifications for market design is analysed, including the inseparability of certain products, the binary or unit-commitment based nature of certain products, and the interactions between procurement mechanisms, network access rights and investment. Finally, we highlight five emerging models of market design for system security that reflect the nuances of economic characterization while respecting the physical characteristics of the grid. [post_title] => Market design for system security in low-carbon electricity grids: from the physics to the economics [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => market-design-for-system-security-in-low-carbon-electricity-grids-from-the-physics-to-the-economics [to_ping] => [pinged] => [post_modified] => 2020-06-17 11:22:48 [post_modified_gmt] => 2020-06-17 10:22:48 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=38652 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [21] => WP_Post Object ( [ID] => 37497 [post_author] => 111 [post_date] => 2020-05-05 11:08:48 [post_date_gmt] => 2020-05-05 10:08:48 [post_content] => MENA oil exporting countries have been hit by a double shock: Covid-19 and the oil price collapse. Their short-term strategy to offset the impact of these shocks will focus simultaneously on fiscal adjustment and coordinating on oil supply cuts with other producers to support oil prices and revenues. While the degree of fiscal adjustment is constrained by its social, political and macroeconomic implications, effective output cut faces several challenges including coordination among producers and the scale of the global oil demand shock. Achieving a meaningful and sustained price increase through collusive supply response is contingent about some key uncertain factors such as the extent of the supply reductions in response to lower oil prices and the extent and duration of global oil demand contractions and the speed and shape of global oil demand recovery. MENA oil exporting countries also face long-term challenges and Covid-19 shock gives new urgency to adjusting their long-term strategy to reduce risks and improve their resilience. These countries face two major long-term issues.  First, there is no single successful strategy to shield against the long-term risks of oil price crash. Diversification works only when it offers risk reduction by the pooling of uncorrelated income streams. If these countries diversify only into sectors where inputs rely on hydrocarbon infrastructures and where both tangible and intangible relationships exist across fossil and non-fossil fuel businesses, they may not achieve sufficient risk reduction. On the other hand, if they diversify into substantively different areas that have little in common with their current primary industry, which constitute the core of their comparative advantage, they run the risk of not being competitive. Second, irrespective of the strategy taken, in the face of disruptive forces, there is a fundamental trade-off between expected return and the variance of return, i.e. the cost of reducing the long-term risks and increasing resilience is to accept lower expected return on existing assets, for instance, by investing in measures that align their hydrocarbon sector with low carbon scenarios. This lowers the overall return but reduces the risk of disruption in the long run. [post_title] => Diversification Strategy Under Deep Uncertainty for MENA Oil Exporting Countries [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => diversification-strategy-under-deep-uncertainty-for-mena-oil-exporting-countries [to_ping] => [pinged] => [post_modified] => 2021-05-03 14:47:46 [post_modified_gmt] => 2021-05-03 13:47:46 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=37497 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [22] => WP_Post Object ( [ID] => 35937 [post_author] => 111 [post_date] => 2020-03-10 11:21:09 [post_date_gmt] => 2020-03-10 11:21:09 [post_content] => Traditional regulatory models of natural monopoly network utilities are designed to incentivise cost-efficiency, subject to the firm achieving a certain level of reliability. With the rise of decarbonisation as a key policy goal, facilitating innovation in electricity networks has become of vital importance. Innovation and cost-efficiency may overlap and exhibit the same risk profile. However, we show that when there is a difference in their risk profile, incentivising these two tasks using the same incentive scheme is ineffective. This means incentive regulations need to be enhanced with additional modules that take into account the level of risk to which companies are exposed to for their stage of innovation activity. We also demonstrate that the issue of risk can distort the outcome of a competitive scheme for allocating innovation funds when bidders are heterogeneous in their risk attitude and there is uncertainty about recovering initial investments needed to prepare the project proposal. Thus, competitive schemes need to be designed such that they factor in risk attitude heterogeneity among bidders. Poudineh, R., Peng, D. & Mirnezami, S. R., 4 March 2020, Innovation in regulated electricity networks: Incentivising tasks with highly uncertain outcomes, Competition and Regulation in Network Industries,  Volume: 21 issue: 2, page(s): 166-192. [post_title] => Innovation in regulated electricity networks: Incentivising tasks with highly uncertain outcomes [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => innovation-in-regulated-electricity-networks-incentivising-tasks-with-highly-uncertain-outcomes [to_ping] => [pinged] => [post_modified] => 2020-06-29 11:33:41 [post_modified_gmt] => 2020-06-29 10:33:41 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=35937 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [23] => WP_Post Object ( [ID] => 34354 [post_author] => 111 [post_date] => 2020-01-08 10:41:30 [post_date_gmt] => 2020-01-08 10:41:30 [post_content] => This paper argues that MENA resource-rich economies must go beyond simply replicating the “standard model” of electricity market liberalisation. They need to not only adapt the standard model to their unique contexts but also integrate it with other elements of their energy systems through harnessing complementarities between existing policies. The integrated model therefore includes additional modules: rationalising end user prices, improving energy efficiency, integrating renewables, and collapsing the “silos” between different energy vectors. The success of the extended reform model, however, is crucially contingent upon taking into account three particular factors in its implementation. First, reforming energy prices requires a better understanding of the underpinning logic of subsidies beyond popular justifications around the “social contract” or “political compact”. Second, energy efficiency is a challenging initiative in the MENA region, which the correction of price signals can only partially resolve, due to other factors that influence it, such as path dependency, market failures and consumer behaviour. And third, incentivising investments in renewable energy requires careful design of the balance of roles between the market and government, as renewable support schemes may lead to an increased role for centralised coordination, thereby contradicting the originally intended objectives of electricity market reform. Poudineh, R., Sen, A., Fattouh, B., (2020), 'An integrated approach to electricity sector reforms in the resource rich economies of the MENA', Energy Policy, 138 [post_title] => An integrated approach to electricity sector reforms in the resource rich economies of the MENA [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => 34354 [to_ping] => [pinged] => [post_modified] => 2020-01-08 10:42:02 [post_modified_gmt] => 2020-01-08 10:42:02 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=34354 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [24] => WP_Post Object ( [ID] => 33840 [post_author] => 111 [post_date] => 2019-12-18 10:26:36 [post_date_gmt] => 2019-12-18 10:26:36 [post_content] => The energy landscape is changing rapidly with far-reaching implications for the global energy industry and actors, including oil companies and oil-exporting countries. These rapid changes introduce multidimensional uncertainty, the most important of which is the speed of the transition. While the transformation of the energy system is rapid in certain regions of the world, such as Europe, the speed of the global energy transition remains highly uncertain. It is also difficult to define the end game (which technology will win and what the final energy mix will be), as the outcome of transition is likely to vary across regions. In this context, oil companies are facing a strategic dilemma: attempt the risky transition to low-carbon technologies by moving beyond their core business or just focus on maximising their return from their hydrocarbon assets. We argue that, due to the high uncertainty, oil companies need to develop strategies that are likely to be successful under a wide set of possible future market conditions. Furthermore, the designed strategies need to be flexible and evolve quickly in response to anticipated changes in the market. For oil-exporting countries, there is no trade-off involved in renewable deployment as such investments can liberate oil and gas for export markets, improving the economics of domestic renewables projects. In the long run, however, the main challenge for many oil countries is economic and income diversification as this represents the ultimate safeguard against the energy transition. Whether or not these countries succeed in their goal of achieving a diversified economy and revenue base has implications for investment in the oil sector and oil prices and consequently for the speed of the global energy transition. Authors: Fattouh, B., Poudineh, R. & West, R. The rise of renewables and energy transition: what adaptation strategy exists for oil companies and oil-exporting countries? Energy Transitions, December 2019, Volume 3, Issue 1–2, pp 45–58 [post_title] => The rise of renewables and energy transition: what adaptation strategy exists for oil companies and oil-exporting countries? [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => the-rise-of-renewables-and-energy-transition-what-adaptation-strategy-exists-for-oil-companies-and-oil-exporting-countries [to_ping] => [pinged] => [post_modified] => 2019-12-18 10:26:36 [post_modified_gmt] => 2019-12-18 10:26:36 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33840 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [25] => WP_Post Object ( [ID] => 33372 [post_author] => 111 [post_date] => 2019-12-02 11:44:06 [post_date_gmt] => 2019-12-02 11:44:06 [post_content] =>

The retail electricity market, as the key link between end users and the wider electricity system, play a significant role throughout the power sector. This paper argues that the reference design of the retail market in the post liberalization era has not only failed to achieve its original objectives but has also proved to be unfit to keep pace with technological change, consumer preference, and the energy transition. Measures to reduce barriers to entry for new suppliers have distorted competition, put consumers at risk through unsustainable retail business models, and led to an unfair distribution of system and public policy costs. Lack of consumer engagement has been one of the biggest weaknesses of retail electricity markets. The nature of issues that impede engagement – such as complexity of the market and electricity tariffs, transaction costs, perceived barriers, and behavioural biases – have made remedial proposals, based on individual switching, less effective for the most disengaged consumers. The growth of government wedge and policy costs has reduced the size of the competitive portion of the retail tariff. At the same time, the structure of end users’ tariffs bears little relationship to the actual cost structure of the electricity system. This lowers the ability of retailers to recover these costs from energy consumption in an equitable manner. The emergence of non-traditional business models, the rise of new players, and a change in the nature of end users’ interactions with the electricity system call into question the dominance of the vertical architecture of an electricity market in which retail suppliers act as the hub. This paper concludes that retail market design and regulations need to be rethought to enable innovation and deliver the decarbonised, resilient, and affordable electricity that all consumers need.

[post_title] => Liberalized retail electricity markets: What we have learned after two decades of experience? [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => liberalized-retail-electricity-markets-what-we-have-learned-after-two-decades-of-experience [to_ping] => [pinged] => [post_modified] => 2019-12-02 11:44:06 [post_modified_gmt] => 2019-12-02 11:44:06 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33372 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [26] => WP_Post Object ( [ID] => 33453 [post_author] => 111 [post_date] => 2019-10-01 14:36:36 [post_date_gmt] => 2019-10-01 13:36:36 [post_content] => Resource adequacy challenges in energy-only markets have often led to the adoption of centralized capacity mechanisms. However, centralized approaches are problematic due to misalignment of incentives in central agency decision-making, difficulty inferring consumer preferences for reliability, lack of economic protection for consumers against reliability outages, and the challenge of allocating reliability costs through volumetric tariffs. This paper proposes a new model, the insurer-of-last-resort that works as a risk overlay on existing energy-only design. It unbundles energy and reliability, incorporates insurance-based risk management concepts to align incentives for centralized decisions, and allows revealed consumer preferences to guide new capacity deployment. Billimoria, F. and Poudineh, R. (2019). ‘Market design for resource adequacy: an insurance overlay on energy-only electricity markets’, Utilities Policy, 59, 100935. [post_title] => Market design for resource adequacy: an insurance overlay on energy-only electricity markets [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => market-design-for-resource-adequacy-an-insurance-overlay-on-energy-only-electricity-markets [to_ping] => [pinged] => [post_modified] => 2019-12-05 14:38:52 [post_modified_gmt] => 2019-12-05 14:38:52 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33453 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [27] => WP_Post Object ( [ID] => 33482 [post_author] => 111 [post_date] => 2019-08-06 11:43:38 [post_date_gmt] => 2019-08-06 10:43:38 [post_content] => Investment in renewable energy sources is a no-regret strategy for hydrocarbon-exporting economies of the Middle East and North Africa. It is also in line with some of the pre-renewable energy-sector reforms in the region. Indeed, much of the ongoing energy-sector reforms—such as the removal of fossil fuel subsidies—complement the move to a strong renewables policy. But the region’s electricity markets, which are currently skewed in favour of hydrocarbons, will need to be carefully designed to support renewables. A holistic approach to energy policy—including establishing stable regulatory frameworks, robust independent institutions, and effective risk mitigation measures—will be critical to advancing renewables in the region. Poudineh, R., Sen, A., and Fattouh, B. (2019). ‘Creating an enabling environment for renewable energy in resource-rich MENA countries’, The World Financial Review. [post_title] => Creating an enabling environment for renewable energy in resource-rich MENA countries [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => creating-an-enabling-environment-for-renewable-energy-in-resource-rich-mena-countries [to_ping] => [pinged] => [post_modified] => 2019-12-18 10:12:07 [post_modified_gmt] => 2019-12-18 10:12:07 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33482 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [28] => WP_Post Object ( [ID] => 31401 [post_author] => 111 [post_date] => 2019-02-11 10:14:48 [post_date_gmt] => 2019-02-11 10:14:48 [post_content] => The contract for difference (CfD) auctions are the cornerstone of the UK electricity sector’s decarbonization policy and were introduced as part of the Electricity Market Reform in 2013. The CfD auctions appear to have been successful in achieving low bids for low-carbon technologies, especially offshore wind power. However, the design of the auction increases the probability of speculative bidding, while the one-shot nature of the auction prevents bidders from learning and from utilizing information efficiently. We show that implementing a stringent non-delivery penalty to induce truth telling can improve deployment rate without increasing support costs. Moreover, by holding regularly scheduled (annual, for example) auctions, information on technology cost decreases can be better incorporated into the bids, lowering investor uncertainty and thus having a positive effect on support costs. [post_title] => Auctions for allocation of offshore wind contracts for difference in the UK [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => auctions-allocation-offshore-wind-contracts-difference-uk [to_ping] => [pinged] => [post_modified] => 2019-02-11 10:14:48 [post_modified_gmt] => 2019-02-11 10:14:48 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=31401 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [29] => WP_Post Object ( [ID] => 31363 [post_author] => 111 [post_date] => 2019-01-24 12:26:30 [post_date_gmt] => 2019-01-24 12:26:30 [post_content] => Energy transition risk is often viewed as a long-term risk, the impacts of which will not be felt for decades to come. However, this view is an imprecise presentation of reality. This is because although completion of transition might take decades, the increased uncertainty around the transition impacts the energy markets on a much shorter time scale than the transition itself. This article presents the results of a survey of institutional investors on hurdle rates for new energy projects and compares it with information available in the public domain about discount rates on completed projects.  The survey shows that uncertainties associated with energy transition have already started to alter the risk preferences of investors in fossil fuel projects. Investors are demanding a much higher hurdle rate in order to invest in long cycle oil and coal projects. We contend that such changes in risk preferences will have several key implications for fossil fuel markets. First, the payback period of discounted investment costs is extended dis-incentivising long cycle projects, therefore concentrating upstream investment around short-term projects with shorter payback periods. Second, it impacts asset valuation of fossil fuel companies with consequences for firms' cash flows and asset payoffs. Third, it encourages the oil and gas companies to adopt a low risk operation model, focus on the harvesting phase of their oil assets, and move away from exploration, appraisal and development. Fourth, it could affect the volume of available supplies if there is not enough investment into the sector with potential consequences on prices depending on demand projections. Fifth, it could affect the long-term price of oil when energy markets start to price in transition related risks. Sixth, the energy transition process could be accelerated as higher long-term oil prices improve the economics of alternative resources. [post_title] => Energy Transition, Uncertainty, and the Implications of Change in the Risk Preferences of Fossil Fuels Investors [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => energy-transition-uncertainty-implications-change-risk-preferences-fossil-fuels-investors [to_ping] => [pinged] => [post_modified] => 2019-01-24 12:26:30 [post_modified_gmt] => 2019-01-24 12:26:30 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=31363 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [30] => WP_Post Object ( [ID] => 33487 [post_author] => 111 [post_date] => 2019-01-06 12:02:27 [post_date_gmt] => 2019-01-06 12:02:27 [post_content] => Although renewables in the resource-rich countries of the Middle East and North Africa are inconsequential contributors to regional total primary energy supply, recent project developments and overt support from a range of influential regional actors suggest a general trend towards a more environmentally sustainable electricity supply. This trend is driven as much by economics as by other factors, as rapidly falling renewable energy capital costs are complementing favourable policy environments, technical suitability, and concerns around the impacts of anthropogenic climate change and local pollution. Finance is an especially important consideration in this transition, yet it receives insufficient coverage. This article seeks to remedy this deficiency of academic inquiry by highlighting the case of the Gulf Cooperation Council to draw out broader implications for the region. It outlines the factors that affect the financeability of projects, reviews the latest developments in renewable energy finance in the region, and presents policy recommendations. Krupa, J., Poudineh, R., and Harvey, D. (2018). ‘Renewable electricity finance in the resource-rich countries of the Middle East and North Africa: a case study on the Gulf Cooperation Council’, Energy, 1, 1047–1062. [post_title] => Renewable electricity finance in the resource-rich countries of the Middle East and North Africa: a case study on the Gulf Cooperation Council [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => renewable-electricity-finance-in-the-resource-rich-countries-of-the-middle-east-and-north-africa-a-case-study-on-the-gulf-cooperation-council [to_ping] => [pinged] => [post_modified] => 2019-12-18 10:12:37 [post_modified_gmt] => 2019-12-18 10:12:37 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33487 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [31] => WP_Post Object ( [ID] => 33486 [post_author] => 111 [post_date] => 2019-01-06 12:01:39 [post_date_gmt] => 2019-01-06 12:01:39 [post_content] => Gifted with vast reserves of oil and natural gas, Nigeria is a country with a low level of electrification but a rapidly rising demand. This invites the question of whether domestic natural gas can be leveraged to facilitate full electrification in Nigeria. The authors contend that, while in principle natural gas is a solution to the problem of electrification, in practice there are constraints, in the gas industry specifically and in the general power sector, to the use of gas for electrification in Nigeria. The gas-industry-specific constraints are the lack of an independent downstream regulatory regime and poor geographical coverage of transportation pipelines. Even when such constraints are resolved, and gas is readily available for use in power generation, electrification is inhibited by the failure of power sector reform to encourage the participation of private capital in financing new generation capacity, an unstable transmission network, and a liquidity crisis in the power sector due to high energy loss, exacerbated by non-cost-reflective tariffs and irregular bill collection. Peng, D. and Poudineh, R. (2018). ‘Is natural gas a viable option to promote electrification in Nigeria?’ Economics of Energy & Environmental Policy, 8(1), 1–18. [post_title] => Is natural gas a viable option to promote electrification in Nigeria? [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => is-natural-gas-a-viable-option-to-promote-electrification-in-nigeria [to_ping] => [pinged] => [post_modified] => 2019-12-06 12:01:51 [post_modified_gmt] => 2019-12-06 12:01:51 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33486 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [32] => WP_Post Object ( [ID] => 31255 [post_author] => 111 [post_date] => 2018-11-01 11:17:57 [post_date_gmt] => 2018-11-01 11:17:57 [post_content] =>

Australia’s National Electricity Market is an important global test case of the impacts of electricity sector transition in a large-scale liberalized energy-only market. The integration of variable and distributed energy resources has provided opportunities for clean, low-cost generation, but has also challenged existing market frameworks and resulted in a debate about the necessity for new designs. The market’s delayed and insufficient response to disorderly retirement and the need for certain system services have resulted in government and system operator intervention to bridge the gap. There are difficulties in securing timely new investment under policy uncertainty and integrated capital models. Furthermore, contributions to system services that were previously provided as a consequence of energy provision are not inherently provided by many new-generation technologies. A range of solutions have been proposed to address these challenges, although none to date have harnessed the potential of comprehensive alignment between operational requirements and economic signals. For example, the government’s flagship National Energy Guarantee, while providing a new framework for emissions intensity and reliability, did not address the ‘missing markets’ in energy security. Measures such as forward markets may provide hedging options, but are limited to energy. Centralized commitment could provide operating robustness, but might not be able to provide sufficient transparency of the various electricity value streams, as the experience of international markets shows. Furthermore, while reliability has taken centre stage in the policy discourse, system security is as important in managing a large-scale complex grid with a significant share of asynchronous generation. We argue that an efficient and transparent real-time energy market must reflect the comprehensive operational requirements of electricity dispatch. This necessitates an extension of energy-only design to an ‘energy+services’ model in which efficient price signals are provided for the ‘missing products’ necessary for operational security. Clear service specifications provide transparent signals that enable clear price discovery and facilitate competition from new providers and technologies.

[post_title] => Electricity Sector Transition in the National Electricity Market of Australia: Managing Reliability and Security in an Energy-Only Market [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => electricity-sector-transition-national-electricity-market-australia-managing-reliability-security-energy-market [to_ping] => [pinged] => [post_modified] => 2018-11-05 11:32:34 [post_modified_gmt] => 2018-11-05 11:32:34 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=31255 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [33] => WP_Post Object ( [ID] => 31235 [post_author] => 111 [post_date] => 2018-10-16 10:38:30 [post_date_gmt] => 2018-10-16 09:38:30 [post_content] => In the face of challenges to energy-only market design under the electricity sector transition, an option considered by many jurisdictions is to incorporate some form of centralized capacity mechanism to respond to shortfalls in the market provision. For example, the UK government has already introduced a formal capacity market. In Germany and Belgium, strategic reserve mechanisms have already been approved and will be introduced shortly. Other markets, such as the National Electricity Market of Australia, are also considering enhancing their existing strategic reserve mechanisms, which would see more standardized and continual procurement of capacity by a noncommercial central agency. Under a market transition where generation is increasingly stochastic and decentralized, two key issues emerge with the above approaches. First, centralized mechanisms put increased focus on the efficiency of central authority decision making and the alignment between performance outcomes for reliability and agency incentives. Second, existing capacity mechanisms require the central agency to infer consumer preferences for reliability, something that is very challenging in practice. This is especially relevant in markets where the value of lost load is increasingly differentiated among different consumers. In this paper, we propose a new model for electricity market design—the insurer-of-last-resort model—that works as a risk overlay on an existing energy-only market. This model unbundles energy and reliability and incorporates insurance-based risk management concepts with the aims of (1) aligning incentives for centralized decision making and (2) allowing revealed consumer preferences to guide new capacity deployment. [post_title] => Decarbonized Market Design: An Insurance Overlay on Energy-Only Electricity Markets [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => decarbonized-market-design-insurance-overlay-energy-electricity-markets [to_ping] => [pinged] => [post_modified] => 2018-10-16 10:38:30 [post_modified_gmt] => 2018-10-16 09:38:30 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=31235 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [34] => WP_Post Object ( [ID] => 33488 [post_author] => 111 [post_date] => 2018-08-06 12:08:38 [post_date_gmt] => 2018-08-06 11:08:38 [post_content] => As much of the world pushes ahead with the deployment of renewable energy, resource-rich economies of the Middle East and North Africa are lagging behind. This article contends that while the main obstacles to deployment of renewables are grid infrastructure inadequacy, insufficient institutional capacity, and risks and uncertainties, the investment incentives lie on a policy instrument spectrum with two polar solutions: (1) the incentive is provided entirely through the market (removing all forms of fossil fuel subsidies and internalizing the cost of externalities), or (2) the incentive is provided through a full government subsidy programme (in addition to the existing fossil fuel subsidies). However, there is a trade-off between the two dimensions of the fiscal burden and political acceptance across the policy instrument spectrum, which implies that the two polar solutions themselves are not easily and fully implementable in these countries. The authors propose a new, dynamic, combined approach (partial subsidy programme and partial fossil fuel price adjustment) that gradually moves towards market-based incentive provision over the medium to long term and eventually phases out energy subsidies. The approach balances fiscal sustainability with political stability, enabling the gradual scaling up and development of markets for renewables. Poudineh, R., Sen, A., and Fattouh, B. (2018). ‘Advancing renewable energy in resource rich economies of the MENA’, Renewable Energy, 123: 135–149. [post_title] => Advancing renewable energy in resource rich economies of the MENA [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => advancing-renewable-energy-in-resource-rich-economies-of-the-mena [to_ping] => [pinged] => [post_modified] => 2019-12-18 10:21:34 [post_modified_gmt] => 2019-12-18 10:21:34 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33488 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [35] => WP_Post Object ( [ID] => 31095 [post_author] => 111 [post_date] => 2018-06-25 10:45:16 [post_date_gmt] => 2018-06-25 09:45:16 [post_content] => Resource-rich economies in the Middle East and North Africa (MENA) are pursuing two parallel strategies with regard to their electricity sectors: (i) increasing the role of renewables and integrating them into their power generation mix to mitigate the impact of rising domestic oil and gas demand on their economies and to boost their hydrocarbon export capacities; and (ii) conducting power sector reforms to attract investment in generation capacity and networks, remove subsidies, and improve operational efficiency. These goals imply that the design of power sector reforms (including regulations governing wholesale and retail markets and networks) needs to be carried out with a view to the possibility of a rising share of non-dispatchable resources. The lack of an integrated approach to simultaneously address these two strategies is likely to lead to several misalignments between renewables and the various components of future electricity markets, when the share of intermittent resources increases in the generation mix. The key challenge is that the ‘ultimate model’ that will reconcile these two goals (liberalization and integrating renewables) is as yet unknown, and is still evolving due to uncertainties around the development of technologies, institutions, and consumer preferences. We argue in this paper that resource-rich MENA countries can, however, move towards adopting a transition model of electricity markets, the individual elements of which can eventually be adapted to suit either centralized or decentralized future electricity sector outcomes. We outline the key components of this model for the wholesale market, retail market, and network regulation, considering the objectives of governments and the specific contexts of the region.​   [post_title] => Electricity Markets in MENA: Adapting for the Transition Era [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => electricity-markets-mena-adapting-transition-era [to_ping] => [pinged] => [post_modified] => 2018-06-21 13:01:32 [post_modified_gmt] => 2018-06-21 12:01:32 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=31095 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [36] => WP_Post Object ( [ID] => 33494 [post_author] => 111 [post_date] => 2018-06-06 12:23:51 [post_date_gmt] => 2018-06-06 11:23:51 [post_content] => Caught between the need to free their economies from reliance on oil revenues alone and the obligation to comply with a now burdensome social contract, Gulf countries are considering how and when to implement a transition that may not be entirely painless. Fattouh, B., Poudineh, R., and West, R. (2018). ‘The unknowns of the transition’, World Energy. [post_title] => The unknowns of the transition [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => the-unknowns-of-the-transition [to_ping] => [pinged] => [post_modified] => 2019-12-06 12:25:49 [post_modified_gmt] => 2019-12-06 12:25:49 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33494 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [37] => WP_Post Object ( [ID] => 31065 [post_author] => 111 [post_date] => 2018-05-29 10:58:01 [post_date_gmt] => 2018-05-29 09:58:01 [post_content] => The energy landscape is changing rapidly with far-reaching implications for global energy industries and actors, including oil companies and oil-exporting countries. These rapid changes introduce uncertainty in multiple dimensions, the most important of which is the speed of transition.  While the transformation of energy systems is rapid in certain regions of the world, such as Europe, the speed of global energy transition remains uncertain. It is also difficult to define the end game (which technology will win and what the final energy mix will be), as the outcome of transition will vary across regions. A key issue facing oil companies and oil-exporting countries is how they should now position themselves and how best to be part of the renewables ‘revolution’. For oil companies, moving beyond their core business is risky, but a ‘wait-and-see' strategy could be costly, therefore oil companies need to gradually ‘extend’ their business model and rather than a complete shift from hydrocarbons to renewables, they should aim to build an integrated portfolio which includes both hydrocarbon and low-carbon assets. The strategies designed to make this happen need to be flexible and able to evolve quickly in response to anticipated changes in the market. For oil-exporting countries, with subsidized prices and rising domestic energy consumption, there is no conflict between investing in renewables and in hydrocarbons as these countries can liberate oil and gas for export markets, improving the economics of renewables projects. In the long run, however, the main challenge for many oil exporting countries is economic diversification as it is the ultimate safeguard against the energy transition. Whether or not these countries succeed in their goal of achieving a diversified economy has implications for global energy markets and the speed of global energy transformations. In other words, the global energy transition will not only shape political and economic outcomes in oil-exporting countries, but the transformations in these major oil-exporting countries will, in turn, shape the global energy transition - adding another layer of uncertainty to the already complex phenomenon of energy transition. [post_title] => The rise of renewables and energy transition: what adaptation strategy for oil companies and oil-exporting countries? [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => rise-renewables-energy-transition-adaptation-strategy-oil-companies-oil-exporting-countries [to_ping] => [pinged] => [post_modified] => 2018-06-05 14:00:22 [post_modified_gmt] => 2018-06-05 13:00:22 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=31065 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [38] => WP_Post Object ( [ID] => 33491 [post_author] => 111 [post_date] => 2018-05-06 12:17:22 [post_date_gmt] => 2018-05-06 11:17:22 [post_content] => Hydrocarbon-rich countries in the Middle East and North Africa have been slow to adopt and scale up renewables. In addition to significant disincentives posed by general barriers to renewables deployment, countries in this region also face factors specific to their economic and political-economy contexts. Renewables have been ‘locked out’ of many of the region’s resource-rich energy systems as a result of plentiful low-priced hydrocarbon fuels and the simultaneous presence of risk and uncertainties, weak institutions, and inadequate grid infrastructure. Given these distinctive characteristics, this chapter argues that the design of longer-term policies to promote renewables should carefully consider the balance of market and government roles in providing investment incentives for renewables, while simultaneously taking into account the barriers to renewables investment that are prevalent in these countries. Poudineh, R., Sen., A., and Fattouh, B. (2018). ‘Policies to promote renewables in the Middle East and North Africa’s resource-rich economies’, in Akhonbay, H. (ed.), The Economics of Renewable Energy in the Gulf, Routledge. [post_title] => Policies to promote renewables in the Middle East and North Africa’s resource-rich economies [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => policies-to-promote-renewables-in-the-middle-east-and-north-africas-resource-rich-economies [to_ping] => [pinged] => [post_modified] => 2019-12-06 12:19:39 [post_modified_gmt] => 2019-12-06 12:19:39 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33491 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [39] => WP_Post Object ( [ID] => 30959 [post_author] => 111 [post_date] => 2018-04-03 12:49:24 [post_date_gmt] => 2018-04-03 11:49:24 [post_content] => Competitive tendering has become one of the preferred methods of contracting renewable energy generation capacity internationally. As of early 2015, at least 60 countries had adopted renewable energy tenders, compared to just six countries in 2005. However, there are limited country-specific comparisons which research the subject considering the importance and prominence of the issue. The aim of this study is to fill this research gap by examining the Brazilian and Mexican experiences in developing renewables and how their tendering programmes interact with the market and institutional frameworks in which they exist. Fundamentally, our study seeks to shed light on two simple questions: what auction design issues may serve as barriers to renewable development, and how can auctions be improved further? We provide a historical assessment of renewable and generation capacity development policies in both Brazil and Mexico, review auction design and results in both countries, and offer recommendations for the future design and implementation of renewable energy policy tools, and auctions in particular. Executive Summary [post_title] => Renewable Auction Design in Theory and Practice: Lessons from the Experiences of Brazil and Mexico [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => renewable-auction-design-theory-practice-lessons-experiences-brazil-mexico [to_ping] => [pinged] => [post_modified] => 2018-04-03 12:51:22 [post_modified_gmt] => 2018-04-03 11:51:22 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=30959 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [40] => WP_Post Object ( [ID] => 33493 [post_author] => 111 [post_date] => 2018-02-06 12:21:44 [post_date_gmt] => 2018-02-06 12:21:44 [post_content] => This article looks at ways that the European Union’s electricity market could be redesigned for a decarbonized future. Peng, D. and Poudineh, R. (2018). ‘What is the right solution?’, Petroleum Review, 72(851), 28–29. [post_title] => What is the right solution? [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => what-is-the-right-solution [to_ping] => [pinged] => [post_modified] => 2019-12-06 12:23:44 [post_modified_gmt] => 2019-12-06 12:23:44 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33493 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [41] => WP_Post Object ( [ID] => 30783 [post_author] => 111 [post_date] => 2017-12-14 15:10:11 [post_date_gmt] => 2017-12-14 15:10:11 [post_content] => While the economics of low carbon generation technologies is fast improving due to a mix of policy and market driven incentives, innovation in electricity networks has been relatively sluggish. This slow adaptation of electricity networks is challenging as they are key to the energy transition. Further electrification of the economy requires significant investment and innovation in the grid segment of the electricity supply chain.  Traditional regulatory models of natural monopoly network utilities are designed to incentivise cost efficiency, with the assumption that network business is costly and the task of regulation is to encourage cost reduction subject to firm achieving a certain level of reliability. A feature of innovation activities is that they are riskier in comparison with the business-as-usual activities of network firms. This paper reviews the evolution of electricity grids from the technological and organisational perspectives and analyses the efficacy of existing incentive models in encouraging innovation.  We show that incentive mechanisms that do not take uncertainty into account in the outcome of innovation efforts divert the attention of network utilities from innovation to normal efficiency gains. We also demonstrate that the issue of risk can distort the outcome of a competitive scheme for innovation funds when bidders are heterogeneous in their risk tolerance. Finally, based on the results of our analysis about the role of risk in innovation activities and a review of innovation incentive mechanisms in the UK and Italy, we provide recommendations for addressing the problem of innovation under regulation. Executive Summary [post_title] => Electricity Networks: Technology, Future Role and Economic Incentives for Innovation [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => electricity-networks-technology-future-role-economic-incentives-innovation [to_ping] => [pinged] => [post_modified] => 2017-12-14 15:10:11 [post_modified_gmt] => 2017-12-14 15:10:11 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=30783 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [42] => WP_Post Object ( [ID] => 30695 [post_author] => 111 [post_date] => 2017-10-26 12:06:14 [post_date_gmt] => 2017-10-26 11:06:14 [post_content] => In recent years, the debate on electricity market design in the EU has focused on the fitness-for-purpose of the existing dominant design, the appropriateness of energy policy that underpins the existing market design, and on the process through which energy policy is coordinated with market design. In this paper, we contribute to this debate on all three levels. First, we propose a ‘module-and-level’-based framework to illustrate our diagnosis of coordination issues present in the EU’s power markets. We apply this framework to make a systematic identification of existing misalignments between the components of current market design and physical RES integration/financial RES support schemes. Secondly, we argue that the role of energy policy is not just in managing existing trade-offs between competitiveness, sustainability, and reliability, but also in encouraging innovations that increase the compatibility of energy policy objectives in the future. Finally, we propose a seven-step condition-dependent evolution of power market design, where the government/regulatory authority plays the role of meta-coordinator, matching the adaptation of market-based coordination modules with a hybrid future where distributed energy resources coexist with centralised generation, while decentralised market participants trade with each other and with incumbents. Executive Summary [post_title] => Electricity market design for a decarbonised future: An integrated approach [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => electricity-market-design-decarbonised-future-integrated-approach [to_ping] => [pinged] => [post_modified] => 2017-11-16 11:44:09 [post_modified_gmt] => 2017-11-16 11:44:09 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=30695 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [43] => WP_Post Object ( [ID] => 33510 [post_author] => 111 [post_date] => 2017-09-06 13:07:02 [post_date_gmt] => 2017-09-06 12:07:02 [post_content] => El plan original de la liberalización que consistía en una serie de mercados mayoristas diferenciados en el tiempo más el mercado al por menor, sufrió nuevos cambios debido a la intervención gubernamental directa. Poudineh, R. (2017, September). ‘The tension between liberalization and decarbonization in the electricity sector: lessons from the case of Britain’ [in Spanish], Proyecto Energético, 33(110), 12–15. [post_title] => The tension between liberalization and decarbonization in the electricity sector: lessons from the case of Britain [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => the-tension-between-liberalization-and-decarbonization-in-the-electricity-sector-lessons-from-the-case-of-britain [to_ping] => [pinged] => [post_modified] => 2019-12-06 13:08:55 [post_modified_gmt] => 2019-12-06 13:08:55 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33510 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [44] => WP_Post Object ( [ID] => 33496 [post_author] => 111 [post_date] => 2017-09-06 12:27:52 [post_date_gmt] => 2017-09-06 11:27:52 [post_content] => Investment in Tanzania’s electricity sector can be made through five different vehicles: the state-owned utility company TANESCO, independent power producers, emergency power producers, small power producers, and public–private partnerships. This article examines the role and performance of these vehicles, in light of the massive power infrastructure investment needs in Tanzania. It analyses the investment vehicles’ historical performance in attracting generation investment and their likely role in the coming years. It also discusses the implication of recent natural gas discoveries for investment in Tanzania’s power generation sector. Peng, D. and Poudineh, R. (2017). ‘An appraisal of investment vehicles in the Tanzania’s electricity sector’, Utilities Policy, 48, 51–68. [post_title] => An appraisal of investment vehicles in the Tanzania’s electricity sector [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => an-appraisal-of-investment-vehicles-in-the-tanzanias-electricity-sector [to_ping] => [pinged] => [post_modified] => 2019-12-18 10:15:01 [post_modified_gmt] => 2019-12-18 10:15:01 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33496 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [45] => WP_Post Object ( [ID] => 33499 [post_author] => 111 [post_date] => 2017-07-06 12:36:54 [post_date_gmt] => 2017-07-06 11:36:54 [post_content] => This book provides an overview of the policy frameworks that have been employed to support offshore wind power, and their efficacy in nurturing sustainable cost reductions across the industry. A growing number of countries are increasingly receptive to the prospect of implementing policies to support the deployment of large-scale renewable energy. The promise of carbon-free, utility-scale power generation from offshore wind farms has incentivized and nurtured offshore wind development. However, the high relative costs of deploying offshore wind compared to alternatives have a history of making it a politically divisive pursuit. At the same time, when many countries are just beginning to explore the possibility of developing an offshore wind industry, many other countries are experiencing what can be described as policy fatigue over supporting offshore wind. If cost reductions are not proven sustainable by the early 2020s, government support for offshore wind may start to erode and even completely evaporate in several key offshore wind markets, with global repercussions. This book offers a clear picture of the current status and future challenges of the offshore wind industry globally, incorporating both a technical analysis of the cost drivers and a detailed analysis of policy design and industrial economics. Poudineh, R., Brown, C., and Foley, B. (2017). Economics of Offshore Wind Power: Challenges and Policy Considerations, Palgrave Macmillan. [post_title] => Economics of Offshore Wind Power: Challenges and Policy Considerations [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => economics-of-offshore-wind-power-challenges-and-policy-considerations [to_ping] => [pinged] => [post_modified] => 2019-12-06 12:38:50 [post_modified_gmt] => 2019-12-06 12:38:50 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33499 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [46] => WP_Post Object ( [ID] => 33497 [post_author] => 111 [post_date] => 2017-04-06 12:29:57 [post_date_gmt] => 2017-04-06 11:29:57 [post_content] => Given the complementarity of electricity systems in the north and south Mediterranean basin, greater integration and trade can help achieve national and regional energy policy objectives of security of supply, cost optimization, and sustainability. However, issues such as different electricity market structures, regulatory and institutional diversity, and disparate levels of political stability make investment in interconnection between north and south a risky undertaking. Due to high perceived risk, delivery of interconnection projects through the European Union regulated model is less likely, or only possible at prohibitively high rates of return. The merchant transmission initiative, on the other hand, seen as an exception under European Union laws, can be approved only if the project meets a set of strict conditions. Here the authors show that a hybrid business model in which the main benefits of a merchant model are maintained within a regulated structure, which involves minimal regulatory changes to national electricity markets, offers an appropriate response to the existing investment challenges in the Euro-Mediterranean basin. The article highlights the main components of the proposed model and shows how it addresses the key features of a viable business model regarding investment incentives, risks, governance, and compatibility with the region’s energy scenario. Poudineh, R. and Rubino, A. (2017). ‘Business model for cross-border interconnections in the Mediterranean basin’, Energy Policy, 107, 96–108. [post_title] => Business model for cross-border interconnections in the Mediterranean basin [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => business-model-for-cross-border-interconnections-in-the-mediterranean-basin [to_ping] => [pinged] => [post_modified] => 2019-12-18 10:17:54 [post_modified_gmt] => 2019-12-18 10:17:54 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33497 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [47] => WP_Post Object ( [ID] => 30167 [post_author] => 111 [post_date] => 2017-03-06 10:56:05 [post_date_gmt] => 2017-03-06 10:56:05 [post_content] => In a recent paper we provide a comprehensive analysis of the gas to power supply chains in Nigeria and Bangladesh. This short article draws on the results of that study. In response to the dual challenge of decarbonisation and advancing energy access, some developing countries that are endowed with domestic natural gas resources have embarked on the path to develop a gas-to-power supply chain. Nigeria and Bangladesh, two of the most populous countries in the world, have adopted such a strategy. This paper uses a multi-step approach to evaluate the performance of the gas-to-power supply chains in these countries within political, regulatory, and commercial dimensions. The goal is to offer insights for other developing countries which are pursuing or considering the same strategy. By analysing the causal dynamics that are in place in Bangladesh and Nigeria, it suggests measures that may improve gas-to-power supply chain performance. Finally, it discusses the extent to which the causal dynamics observed can be generalised to other countries. Full paper. [post_title] => Gas-to-Power Supply Chains in Developing Countries: Comparative Case Studies of Nigeria and Bangladesh [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => gas-power-supply-chains-developing-countries-comparative-case-studies-nigeria-bangladesh [to_ping] => [pinged] => [post_modified] => 2017-11-16 14:22:12 [post_modified_gmt] => 2017-11-16 14:22:12 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=30167 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [48] => WP_Post Object ( [ID] => 30084 [post_author] => 111 [post_date] => 2017-02-13 11:52:40 [post_date_gmt] => 2017-02-13 11:52:40 [post_content] => Renewables in the resource-rich countries of the Middle East and North Africa (MENA) are inconsequential contributors to regional total primary energy supply, but recent project developments and overt support from a range of influential regional actors suggest a general trend towards a more environmentally sustainable electricity supply. This trend is driven just as much by economics as other factors, as rapidly falling renewable energy capital costs are complementing favourable policy environments, technical suitability, and concerns around the impacts of anthropogenic climate change. Finance is an especially important consideration in this transition, yet it receives insufficient coverage. This paper seeks to remedy this deficiency of academic inquiry. At the root of our inquiry lies a simple pair of questions: what makes a project financeable, and what can the resource-rich nations of the region do to create vibrant clean electricity financing markets for renewables? We outline the factors that affect the financeability of projects, review the latest developments in renewable energy finance in the region, and present policy recommendations going forward. Executive Summary [post_title] => Financing renewable electricity in the resource-rich countries of the Middle East and North Africa: A review [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => financing-renewable-electricity-middle-east-north-africa-review [to_ping] => [pinged] => [post_modified] => 2017-11-16 13:26:42 [post_modified_gmt] => 2017-11-16 13:26:42 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=30084 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [49] => WP_Post Object ( [ID] => 33500 [post_author] => 111 [post_date] => 2017-01-06 12:38:59 [post_date_gmt] => 2017-01-06 12:38:59 [post_content] => Modern economies and infrastructure sectors rely on secure electricity supplies. Due to sectoral interdependencies, major interruptions cause cascading effects in the economy. This article investigates the economic effects of major power supply disruptions, taking such interdependencies into account. The authors apply a dynamic inoperability input-output model to 101 sectors, including households, of the Scottish economy in 2009 to explore the direct, indirect, and induced effects of supply interruptions. They estimate the societal cost of energy not supplied (SCENS) due to an interruption. The results show that the most economically affected industries, following an outage, are different from the most inoperable ones. The results also indicate that SCENS varies with the duration of a power cut, ranging from 4,300/MWh for a one-minute outage to 8,100/MWh for a three-hour (and higher) interruption. These results can be used to design policies for contingencies and preventive investments in the power sector. Poudineh, R. and Jamasb, T. (2017). ‘Electricity supply interruptions: sectoral interdependencies and the cost of energy not served for the Scottish economy’, Energy Journal, 38(1): 51–76. [post_title] => Electricity supply interruptions: sectoral interdependencies and the cost of energy not served for the Scottish economy [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => electricity-supply-interruptions-sectoral-interdependencies-and-the-cost-of-energy-not-served-for-the-scottish-economy-2 [to_ping] => [pinged] => [post_modified] => 2019-12-18 10:18:54 [post_modified_gmt] => 2019-12-18 10:18:54 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33500 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [50] => WP_Post Object ( [ID] => 33595 [post_author] => 111 [post_date] => 2016-11-09 15:12:18 [post_date_gmt] => 2016-11-09 15:12:18 [post_content] => The increasing global use of natural gas for power generation has begun a period of interdependence between two important energy industries. Understanding of the extended gas-to-power supply chain is important for power and gas system operators, integrated utilities, regulators, and government bodies responsible for overall energy policy. This article seeks to align the study of the gas and power industries by providing a holistic framework for the thorough identification and discussion of power and gas sector structure, infrastructure, markets, and regulatory drivers. Additionally, it offers a simulation model as an example of applying the analytical framework to study gas and power interdependence in the United Kingdom. Peng, D. and Poudineh, R. (2016). ‘A holistic framework for the study of interdependence between electricity and gas sectors’, Energy Strategy Reviews, 13–14, 32–52. [post_title] => A holistic framework for the study of interdependence between electricity and gas sectors [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => a-holistic-framework-for-the-study-of-interdependence-between-electricity-and-gas-sectors-2 [to_ping] => [pinged] => [post_modified] => 2019-12-18 10:19:25 [post_modified_gmt] => 2019-12-18 10:19:25 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33595 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [51] => WP_Post Object ( [ID] => 29685 [post_author] => 111 [post_date] => 2016-10-03 13:24:47 [post_date_gmt] => 2016-10-03 12:24:47 [post_content] =>

As much of the world pushes ahead with the deployment of renewable energy, resource-rich MENA economies are lagging behind. For the region to catch up, new policies are required to remove barriers of entry to the industry and create investment incentives. This paper contends that while the main obstacles to deployment of renewables are grid infrastructure inadequacy, insufficient institutional capacity, and risks and uncertainties, the investment incentives lie on a policy instrument spectrum with two polar solutions: (i) the incentive is provided entirely through the market (removing all forms of fossil fuel subsidies and internalising the cost of externalities); or (ii) the incentive is provided through a full government subsidy programme (in addition to the existing fossil fuel subsidies). However, there is a trade-off between the two dimensions of the fiscal burden and political acceptance across the policy instrument spectrum, which implies that the two polar solutions themselves are not easily and fully implementable in these countries. Therefore, we propose a combinatorial approach in which the incentive for renewables deployment is provided through a partial renewable subsidy program and partial fossil fuel price reform in a way that balances the fiscal pressure on the government against political acceptability. Additionally, the paper argues that the fact resource-rich countries are behind advanced economies in electricity sector reform gives them a last-mover advantage in the sense that they can tap into years of international experience to avoid design mistakes and create a sustainable solution that is compatible with renewables deployment and their own context.

Executive Summary

[post_title] => Advancing Renewable Energy in Resource-Rich Economies of the MENA [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => advancing-renewable-energy-resource-rich-economies-mena [to_ping] => [pinged] => [post_modified] => 2017-11-16 13:39:10 [post_modified_gmt] => 2017-11-16 13:39:10 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=29685 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [52] => WP_Post Object ( [ID] => 29390 [post_author] => 111 [post_date] => 2016-07-18 10:45:03 [post_date_gmt] => 2016-07-18 09:45:03 [post_content] => In a recent paper we investigate the problem of incentivising flexibility in electricity markets. As the share of intermittent renewable energy increases in the generation mix, power systems are exposed to greater levels of uncertainty and risk, which requires planners, policy and business decision makers to incentivise flexibility, that is: their adaptability to unforeseen variations in generation and demand. The greater need for flexibility, along with the fact that its provision is costly, highlights the importance of efficient procurement. As a commodity, flexibility has multiple attributes such as capacity, ramp rate, duration and lead time among which there are complementarities. Additionally, along with traditional sources, which already enable flexibility, a number of business models, such as thermostat-based demand response, aggregators and small storage providers, are emerging in electricity markets and expected to constitute important sources of flexibility in future decentralised power systems. However, due to presence of high transaction costs, relative to the size of resource, the emerging small resources cannot directly participate in an organised electricity market and/or compete. Therefore we ask the fundamental question of how should the provision of flexibility, as a multi-dimensional commodity, be incentivised in this context? We model the procurement of flexibility services from emerging small resources through bilateral contracts in a multidimensional adverse selection setting. We take a normative perspective and show how efficient contracts for flexibility services can be designed given its peculiarity as an economic commodity. Through a simulation analysis we elucidate the applicability of the proposed model and demonstrate the way it can be utilised in, for example, a thermostat based demand response programme. [post_title] => Flexibility-Enabling Contracts in Electricity Markets [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => flexibility-enabling-contracts-electricity-markets [to_ping] => [pinged] => [post_modified] => 2016-07-18 10:45:03 [post_modified_gmt] => 2016-07-18 09:45:03 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=29390 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [53] => WP_Post Object ( [ID] => 33601 [post_author] => 111 [post_date] => 2016-07-09 15:33:30 [post_date_gmt] => 2016-07-09 14:33:30 [post_content] => As intermittent renewable resources gain more share in the generation mix, the need for power system flexibility increases more than ever. Parallel to this, technological change and the emergence of new players bringing about innovative solutions are boosting the development of flexibility-enabling business models, adding new activities to the existing supply chain. This chapter reviews the latest developments in these emerging models, ranging from technological to market-based innovation. The main conclusion is that when flexibility becomes scarce in the system, new players with their innovative business models will play an important role in ensuring sufficiency and efficiency of flexibility services. Boscán, L. and Poudineh, R. (2016). ‘Business models for power system flexibility: new actors, new roles, new rules’, in Sioshansi, F. (ed.), Future of Utilities: Utilities of the Future, Elsevier. [post_title] => Business models for power system flexibility: new actors, new roles, new rules [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => business-models-for-power-system-flexibility-new-actors-new-roles-new-rules [to_ping] => [pinged] => [post_modified] => 2019-12-18 10:20:05 [post_modified_gmt] => 2019-12-18 10:20:05 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33601 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [54] => WP_Post Object ( [ID] => 29354 [post_author] => 111 [post_date] => 2016-07-04 13:36:32 [post_date_gmt] => 2016-07-04 12:36:32 [post_content] => In order to fulfil its aspiration to become a middle-income country, Tanzania is working on improving infrastructure and service delivery in electricity provision, where $40 billion investment is needed in the sector to meet rising demand and widening electrification efforts from 2013 to 2035. This paper considers the institutional arrangements for investment in Tanzania’s power sector and surveys the track record (and possible bottlenecks) in funnelling investment to the sector, with special attention given to the gas sector, given the power sector’s planned reliance upon natural gas as a generation fuel. The paper finds that the financial health of TANESCO is central to all investment vehicles, since it is either directly responsible for investment, or indirectly, as the counter party to the variety of PPAs available with IPPs, EPPs, SPPs, or PPPs. During 2011–13, the financial position of TANESCO was negatively impacted by the increased of its electricity purchases, while the regulated tariff that it charges has not changed. The cost increase is partially attributable to non-favourable hydrology and partially attributable to the depreciation of Tanzanian shilling against the US dollar, in which PPAs are denominated. Detailed study of the tariff setting methodology in place in Tanzania, as evidenced through its latest tariff review, and evaluation of the ratemaking principles used in the tariff approved in 2013 reveals that the core tension within Tanzania’s tariff setting methodology is the trade-off between efficiency, sufficiency, and stability principles. The ex-ante assessment of TANESCO’s revenue requirement, a typical incentive-based price cap regulation, is theoretically efficient but not robust: TANESCO’s costs of service are subject to important external uncertainties like hydrology, currency depreciation, and global fuel prices. In order to take revenue sufficiency into account, the regulator needs to periodically adjust tariffs based on ex post fuel costs and inflation rates. This diminishes the regulator’s ability to maintain tariff stability, which might impact certain classes of customers more than others (lifeline rate customers and domestic industries). The experiences of other nations, namely Bangladesh and Côte d’Ivoire, reveal a potential challenge with regard to power and gas co-development: if non-cost reflective gas tariffs are applied as a regulatory decision, then high gas demand that results from that cannot be indefinitely sustained, since investment in gas supply will not follow suite. The case study of Côte d’Ivoire also reveals a less obvious opportunity: periods of low electricity demand can be leveraged positively through electricity exports, which can positively influence investor interest. Executive Summary [post_title] => Sustainable electricity pricing for Tanzania [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => susatainable-electricity-pricing-tanzania [to_ping] => [pinged] => [post_modified] => 2017-11-16 13:56:43 [post_modified_gmt] => 2017-11-16 13:56:43 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=29354 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [55] => WP_Post Object ( [ID] => 29338 [post_author] => 111 [post_date] => 2016-06-20 13:00:39 [post_date_gmt] => 2016-06-20 12:00:39 [post_content] => The complementarity between electricity systems of the north and south Mediterranean basin along with the need for diversification of energy resources and optimisation of energy systems are among the reasons for greater electricity trade and cross-border integration in the region. However, development of cross-border interconnection in the Mediterranean basin requires a business model which provides incentives for investment and efficient operation, manages risks and uncertainties and facilitates coordinated planning and governance. We contend that, due to high perceived risk of investment, delivery of interconnection projects through the EU regulated model is less likely, or only possible at prohibitively high rate of returns. The merchant transmission initiative (MTI), on the other hand, is seen as an exception under the EU laws and can be approved only if the project meets a set of strict conditions. We, therefore, advocate a hybrid business model in which the main benefits of a merchant model are maintained within a regulated structure. We highlight the main components of the proposed business model and show how it addresses the key features of a viable business model in relation to incentives, risks and governance. Our analysis demonstrates that the proposed Mediterranean business model for interconnection can better provide incentives for investment and is more compatible with the region’s energy scenario, governance structure and the risk attitude. Executive Summary [post_title] => Business model for cross-border interconnections in the Mediterranean basin [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => business-model-cross-border-interconnections-mediterranean-basin [to_ping] => [pinged] => [post_modified] => 2017-11-16 13:58:04 [post_modified_gmt] => 2017-11-16 13:58:04 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=29338 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [56] => WP_Post Object ( [ID] => 33597 [post_author] => 111 [post_date] => 2016-05-09 15:26:37 [post_date_gmt] => 2016-05-09 14:26:37 [post_content] => Ghana’s electricity generation capacity is currently insufficient to meet demand, making power outages and load shedding common. The resulting impact is potentially devastating for the country’s growth prospects. Traditionally, lack of an affordable and reliable fuel supply for power generation, coupled with ineffective institutions and an unfavourable investment climate, have resulted in Ghana’s electricity sector performing poorly. In light of the 2007 discovery of natural gas reserves in Ghanaian waters, this article examines whether domestic gas could advance the performance of the electricity sector, and if so, how. The results of this analysis show that utilization of gas reserves in Ghana’s gas-to-power market is an economically superior strategy compared to an export-oriented utilization scheme. The lack of an effective regulatory framework for investment, skill shortages, and an inefficient electricity pricing structure continue to be the main constraining factors. The analysis also considers possible approaches to modification of the electricity tariff in order to send the right signal to potential investors in generation capacity, without compromising the affordability of power supply. Fritsch, J. and Poudineh, R. (2016). ‘Gas-to-power market and investment incentive for enhancing generation capacity: an analysis of Ghana’s electricity sector’, Energy Policy, 92, 92–101. [post_title] => Gas-to-power market and investment incentive for enhancing generation capacity: an analysis of Ghana’s electricity sector [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => gas-to-power-market-and-investment-incentive-for-enhancing-generation-capacity-an-analysis-of-ghanas-electricity-sector-2 [to_ping] => [pinged] => [post_modified] => 2019-12-18 10:20:40 [post_modified_gmt] => 2019-12-18 10:20:40 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33597 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [57] => WP_Post Object ( [ID] => 33599 [post_author] => 111 [post_date] => 2016-04-09 15:29:10 [post_date_gmt] => 2016-04-09 14:29:10 [post_content] => Given its highly undiversified economic base, maximizing revenues will always rank highly in Saudi Arabia’s output decision. However, this objective needs to be balanced against another—maintaining its share in key markets and maximizing long-term revenue—given the massive size of Saudi Arabia’s reserves. The trade-off between these two objectives tends to change over time, depending on market conditions, the nature of the shock, and the behaviour of other producers; Saudi Arabia’s oil policy is hence not constant. The authors argue that the advent of US shale has made the calculus of the trade-off more uncertain, complicating Saudi Arabia’s output decision. Using a simple game, they show that, under uncertainty, it is always safer for the Kingdom to assume that the shale oil supply is highly elastic, and thus decide not to cut output. But as Saudi Arabia learns more about this new source of supply, its policy could adapt accordingly. The fact that Saudi Arabia’s oil policy could change as the trade-off between revenue maximization and market share evolves, and as new information to the market arrives, will keep the market second-guessing and will continue to shape market expectations and to influence market outcomes. Fattouh, B., Poudineh, R., and Sen, A. (2016). ‘The dynamics of the revenue maximization–market share trade-off: Saudi Arabia’s oil policy in the 2014–15 price fall’, Oxford Review of Economic Policy, 32(2), 223–240. [post_title] => The dynamics of the revenue maximization–market share trade-off: Saudi Arabia’s oil policy in the 2014–15 price fall [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => the-dynamics-of-the-revenue-maximization-market-share-trade-off-saudi-arabias-oil-policy-in-the-2014-15-price-fall [to_ping] => [pinged] => [post_modified] => 2019-12-18 10:21:09 [post_modified_gmt] => 2019-12-18 10:21:09 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33599 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [58] => WP_Post Object ( [ID] => 33596 [post_author] => 111 [post_date] => 2016-01-09 15:16:22 [post_date_gmt] => 2016-01-09 15:16:22 [post_content] => Investment in electricity networks, as regulated natural monopolies, is among the highest regulatory and energy policy priorities. Electricity sector regulators adopt different incentive mechanisms to ensure that the firms undertake sufficient investment to maintain and modernize the grid. Thus, an effective regulatory treatment of investment requires an understanding of the response of companies to the regulatory incentives. This article analyses the determinants of investment in electricity distribution networks using a panel dataset of 129 Norwegian companies observed from 2004 to 2010. A Bayesian model averaging approach is used to provide a robust statistical inference by taking into account the uncertainties around model selection and estimation. The results show that three factors drive nearly all network investments: investment rate in previous period, socioeconomic costs of energy not supplied, and useful life of assets. The results indicate that Norwegian companies have, to some degree, responded to the investment incentives provided by the regulatory framework. However, some of the incentives do not appear to be effective in driving investments. Poudineh, R. and Jamasb, T. (2016). ‘Determinants of investment under incentive regulation: the case of the Norwegian electricity distribution networks’, Energy Economics, 53, 193–202. [post_title] => Determinants of investment under incentive regulation: the case of the Norwegian electricity distribution networks [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => determinants-of-investment-under-incentive-regulation-the-case-of-the-norwegian-electricity-distribution-networks [to_ping] => [pinged] => [post_modified] => 2019-12-09 15:26:32 [post_modified_gmt] => 2019-12-09 15:26:32 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33596 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [59] => WP_Post Object ( [ID] => 33606 [post_author] => 111 [post_date] => 2015-11-09 15:45:39 [post_date_gmt] => 2015-11-09 15:45:39 [post_content] => This chapter reviews the main challenges facing electricity distribution network utilities along technological, economic, and social dimensions. It also discusses the implications of challenges ahead for network utilities and provides some insights into the likely features of their future business models. Poudineh, R., Tobiasson, W., and Jamasb, T. (2015). ‘Electricity distribution utilities and the future: more than wires’, in Finger, M. and Jaag, C. (eds.), The Routledge Companion to Network Industries. [post_title] => Electricity distribution utilities and the future: more than wires [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => electricity-distribution-utilities-and-the-future-more-than-wires [to_ping] => [pinged] => [post_modified] => 2019-12-18 10:22:10 [post_modified_gmt] => 2019-12-18 10:22:10 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33606 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [60] => WP_Post Object ( [ID] => 27314 [post_author] => 1 [post_date] => 2015-11-09 10:55:21 [post_date_gmt] => 2015-11-09 10:55:21 [post_content] => The increasing global use of natural gas for power generation has resulted in a period of interdependence between two important energy industries. Understanding of the extended gas-to-power supply chain is important for industry agents, power and gas system operators or integrated utilities, regulators, and government bodies responsible for overall energy policy. This paper seeks to align the study of gas and power industries by providing a holistic framework for the thorough identification and discussion of power and gas sector structure, infrastructure, market, and regulatory drivers. It acts as a lens through which the combined gas and power supply chains of any given country can be observed and understood. The gas-to-power supply chain of the United Kingdom is profiled to illustrate how the framework proposed can be applied to integrate the various dimensions of power and gas industries. Executive Summary [post_title] => A holistic framework for the study of interdependence between electricity and gas sectors [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => a-holistic-framework-for-the-study-of-interdependence-between-electricity-and-gas-sectors [to_ping] => [pinged] => [post_modified] => 2017-11-20 09:32:52 [post_modified_gmt] => 2017-11-20 09:32:52 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/wpcms/publications/a-holistic-framework-for-the-study-of-interdependence-between-electricity-and-gas-sectors/ [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [61] => WP_Post Object ( [ID] => 27320 [post_author] => 1 [post_date] => 2015-10-19 15:22:05 [post_date_gmt] => 2015-10-19 14:22:05 [post_content] => This paper follows on from ‘Saudi Arabia’s Oil Policy: More than Meets the Eye?’ published in June 2015, which raised a set of fundamental questions in relation to the sharp drop in the oil price between June 2014 and January 2015, and OPEC’s decision, spearheaded by Saudi Arabia, not to cut output in response. We develop a simple analytical framework, which formalizes Saudi Arabia’s decision-making process relative to the fundamental revenue maximization-market share trade-off in the 2014-15 oil price fall. Using a simple game, we show that under uncertainty, it is always better off for the Kingdom to assume shale oil supply is elastic and not to cut output. But we also argue that as Saudi Arabia learns more about this new source of supply, its policy will adapt accordingly. The fact Saudi Arabia’s oil policy could change as the trade-off between revenue maximization and market share evolves, and as new information is transmitted to the market, will keep the market second-guessing. It will continue to shape market expectations and influence market outcomes. Executive Summary [post_title] => The Dynamics of the Revenue Maximisation--Market Share Trade-off - Saudi Arabia's Oil Policy in the 2014--2015 Price Fall [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => the-dynamics-of-the-revenue-maximisation-market-share-trade-off-saudi-arabias-oil-policy-in-the-2014-2015-price-fall [to_ping] => [pinged] => [post_modified] => 2017-11-20 09:37:12 [post_modified_gmt] => 2017-11-20 09:37:12 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/wpcms/publications/the-dynamics-of-the-revenue-maximisation-market-share-trade-off-saudi-arabias-oil-policy-in-the-2014-2015-price-fall/ [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [62] => WP_Post Object ( [ID] => 33605 [post_author] => 111 [post_date] => 2015-10-09 15:42:59 [post_date_gmt] => 2015-10-09 14:42:59 [post_content] => Following the liberalization of the electricity industry since the early 1990s, many sector regulators have adopted incentive regulation aided by benchmarking and productivity analysis. This approach has often resulted in improved efficiency and quality of service. However, there remains a growing concern as to whether the utilities invest sufficiently and efficiently in maintaining and modernizing their networks. This article discusses the relationship between investments and cost efficiency in the context of incentive regulation with ex-post regulatory treatment of investments, using a panel dataset of 129 Norwegian distribution companies from 2004 to 2010. The authors introduce the concept of ‘no-impact efficiency’ as a revenue-neutral efficiency effect of investment under incentive regulation that makes a firm ‘investment efficient’ in cost benchmarking. They also estimate the observed efficiency effect of investments and compare these with the no-impact efficiency. Finally, they discuss the implications of cost benchmarking for the investment behaviour of network companies. Poudineh, R. and Jamasb, T. (2015). ‘A new perspective: investment and efficiency under incentive regulation’, Energy Journal, 36(4), 241–263. [post_title] => A new perspective: investment and efficiency under incentive regulation [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => a-new-perspective-investment-and-efficiency-under-incentive-regulation [to_ping] => [pinged] => [post_modified] => 2019-12-18 10:22:45 [post_modified_gmt] => 2019-12-18 10:22:45 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/?post_type=publications&p=33605 [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [63] => WP_Post Object ( [ID] => 27324 [post_author] => 1 [post_date] => 2015-09-01 12:47:04 [post_date_gmt] => 2015-09-01 11:47:04 [post_content] => The promise of carbon-free, utility-scale power generation from offshore wind farms is encouraging a number of governments to implement policy support frameworks and national targets for offshore wind power generation. However, the high capital requirements for the deployment of offshore wind have proven that it is an expensive approach to meeting national renewable energy and carbon reduction targets, relative to other power generation sources. The capital requirement for offshore wind farms will be pushed even higher as consented development zones move further from shore and into deeper waters. In this paper, we analyse the major capital cost drivers of offshore wind plants and the implications of various policy frameworks on overall cost reductions for the industry. According to the results of our analysis, this issue – whether the promotion of scalability, or of competition for subsidies, will be more effective in driving down industry-wide costs – is highly market specific. Competitive policies are likely to be most effective when the market size is sufficiently large, whereas enhancing scale is more effective in nascent markets. However, we caution that in either case, the public costs of policies directly supporting offshore wind must be reconciled with the cost of supporting other low-carbon and zero-carbon technologies that may be equally as effective in helping governments achieve renewable energy and carbon reduction targets. Executive Summary [post_title] => Achieving a cost-competitive offshore wind power industry - what is the most effective policy framework? [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => achieving-a-cost-competitive-offshore-wind-power-industry-what-is-the-most-effective-policy-framework [to_ping] => [pinged] => [post_modified] => 2017-11-20 09:38:27 [post_modified_gmt] => 2017-11-20 09:38:27 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/wpcms/publications/achieving-a-cost-competitive-offshore-wind-power-industry-what-is-the-most-effective-policy-framework/ [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [64] => WP_Post Object ( [ID] => 27327 [post_author] => 1 [post_date] => 2015-08-10 10:44:42 [post_date_gmt] => 2015-08-10 09:44:42 [post_content] => Ghana’s electricity generation capacity is currently insufficient to meet demand, making power outages and load shedding common. The resulting impact is potentially devastating for the country’s growth prospects. Traditionally, lack of an affordable and reliable fuel supply for power generation, coupled with ineffective institutions and an unfavourable investment climate, have resulted in Ghana’s electricity sector performing poorly. In light of the 2007 discovery of natural gas reserves in Ghanaian waters, this paper examines whether domestic gas could advance the performance of the electricity sector, and if so, how. The results of our analysis show that utilization of gas reserves in Ghana’s gas-to-power market is an economically superior strategy compared to an export-oriented utilization scheme. The lack of an effective regulatory framework for investment, skill shortages, and an inefficient electricity pricing structure continue to be the main constraining factors. Our analysis also considers possible approaches to modification of the electricity tariff in order to send the right signal to potential investors in generation capacity, without compromising the affordability of power supply. Executive Summary [post_title] => Gas-to-power market and investment incentive for enhancing generation capacity - an analysis of Ghana’s electricity sector [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => gas-to-power-market-and-investment-incentive-for-enhancing-generation-capacity-an-analysis-of-ghanas-electricity-sector [to_ping] => [pinged] => [post_modified] => 2017-11-20 09:40:31 [post_modified_gmt] => 2017-11-20 09:40:31 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/wpcms/publications/gas-to-power-market-and-investment-incentive-for-enhancing-generation-capacity-an-analysis-of-ghanas-electricity-sector/ [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [65] => WP_Post Object ( [ID] => 27361 [post_author] => 1 [post_date] => 2015-03-09 15:11:44 [post_date_gmt] => 2015-03-09 15:11:44 [post_content] => The distribution network is an important element of the power system that delivers electricity to the end-user. In the coming years a large amount of investment is envisioned in distribution system as these networks play a pivotal role in integration of renewable resources, demand side management and market competition, among other things. At the same time, network companies are regulated natural monopolies where their investment decisions are influenced by regulatory framework and intuitional constraints. There are various models of regulatory treatment of investment but the main objective of all is to ensure sufficiency and efficiency of investment. In this presentation with explore the relationship between investment and efficiency under incentive regulation with ex-post regulatory treatment of investment costs. [post_title] => Investment and efficiency in electricity networks [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => investment-and-efficiency-in-electricity-networks [to_ping] => [pinged] => [post_modified] => 2015-03-09 15:11:44 [post_modified_gmt] => 2015-03-09 15:11:44 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/wpcms/publications/investment-and-efficiency-in-electricity-networks/ [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) [66] => WP_Post Object ( [ID] => 27370 [post_author] => 1 [post_date] => 2015-02-09 13:58:58 [post_date_gmt] => 2015-02-09 13:58:58 [post_content] => The power sector has a central role in modern economies and other interdependent infrastructures rely heavily upon secure electricity supplies. Due to interdependencies, major electricity supply interruptions result in cascading effects in other sectors of the economy. This paper investigates the economic effects of large power supply disruptions taking such interdependencies into account. We apply a dynamic inoperability input–output model (DIIM) to 101 sectors (including households) of the Scottish economy in 2009 in order to explore direct, indirect, and induced effects of electricity supply interruptions. We then estimate the societal cost of energy not supplied (SCENS) due to interruption, in the presence of interdependency among the sectors. The results show that the most economically affected industries, following an outage, can be different from the most inoperable ones. The results also indicate that SCENS varies with duration of a power cut, ranging from around £4300/MWh for a one-minute outage to around £8100/MWh for a three hour (and higher) interruption. The economic impact of estimates can be used to design policies for contingencies such as roll-out priorities as well as preventive investments in the sector. Executive Summary [post_title] => Electricity Supply Interruptions - Sectoral Interdependencies and the Cost of Energy Not Served for the Scottish Economy [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => electricity-supply-interruptions-sectoral-interdependencies-and-the-cost-of-energy-not-served-for-the-scottish-economy [to_ping] => [pinged] => [post_modified] => 2017-11-20 10:45:03 [post_modified_gmt] => 2017-11-20 10:45:03 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.oxfordenergy.org/wpcms/publications/electricity-supply-interruptions-sectoral-interdependencies-and-the-cost-of-energy-not-served-for-the-scottish-economy/ [menu_order] => 0 [post_type] => publications [post_mime_type] => [comment_count] => 0 [filter] => raw ) ) [post_count] => 67 [current_post] => -1 [before_loop] => 1 [in_the_loop] => [post] => WP_Post Object ( [ID] => 46685 [post_author] => 974 [post_date] => 2023-11-02 11:01:24 [post_date_gmt] => 2023-11-02 11:01:24 [post_content] => As the world races to decarbonize its energy systems, the choice between transmitting green energy as electrons through high-voltage direct current (HVDC) lines or as molecules via hydrogen pipelines emerges as a critical decision. This paper considers this pivotal choice and compares the techno-economic characteristics of these two transmission technologies. Hydrogen pipelines offer the advantage of transporting larger energy volumes, but existing projects are dwarfed by the vast networks of HVDC transmission lines. Advocates for hydrogen pipelines see potential in expanding these networks, capitalizing on hydrogen’s physical similarities to natural gas and the potential for cost savings. However, hydrogen’s unique characteristics, such as its small molecular size and compression requirements, present construction challenges. On the other hand, HVDC lines, while less voluminous, excel in efficiently transmitting green electrons over long distances. They already form an extensive global network, and their efficiency makes them suitable for various applications. Yet, intermittent renewable energy sources pose challenges for both hydrogen and electricity systems, necessitating solutions like storage and blending. Considering these technologies as standalone competitors belies their complementary nature. In the emerging energy landscape, they will be integral components of a complex system. Decisions on which technology to prioritize depend on factors such as existing infrastructure, adaptability, risk assessment, and social acceptance. Furthermore, while both HVDC lines and hydrogen pipelines are expected to proliferate, other factors such as market maturity of the relevant energy vector, government policies, and regulatory frameworks around grid development and utilization are also expected to play a crucial role. Energy transition is a multifaceted challenge, and accommodating both green molecules and electrons in our energy infrastructure may be the key to a sustainable future. This paper’s insights underline the importance of adopting a holistic perspective and recognising the unique strengths of each technology in shaping a resilient and sustainable energy ecosystem. [post_title] => Hydrogen pipelines vs. HVDC lines: Should we transfer green molecules or electrons? 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Latest Publications by Rahmat Poudineh

Ongoing research by Rahmat Poudineh