How much room for a competitive electricity generation market in Portugal?

Amorim, Filipa; Vasconcelos, Jorge; Abreu, Isabel; Silva, P.P.; Martins, Víctor Emanuel Pessoa

doi:10.1016/j.rser.2012.10.010

Cited by 31 publications

(21 citation statements)

References 9 publications

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“…Nonetheless, the development of RES is predominantly compelled by public renewable support schemes that are financed via the electricity market by increasing the final price paid by consumers. For instance, Amorim et al, [2], referring to the Portuguese electricity supply industry, provided evidence that the volume and the duration of the existing legacy contracts, including special incentives and guaranteed purchase prices granted to special regime (SR) generators -i.e. generators based on RES, waste and combined heat and power or cogeneration (CHP) prevents the development of a competitive wholesale market at least until the mid 2020s and, thus, price guarantees represent costs to be paid by electricity consumers during the next decades.…”

Section: The Evolution Of the Eu Electricity Marketmentioning

confidence: 99%

Assessing the determinants of household electricity prices in the EU: a system-GMM panel data approach

Silva

Cerqueira

2017

Renewable and Sustainable Energy Reviews

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A meaningful portion of the consumer basket of European households and companies is embodied by electricity as well as gas or refined petroleum products. As energy products are essential inputs of nearly all final goods and services, whichever change of energy prices has a direct impact of the general price level. In this context, the main purpose of this study is to assess the main drivers of household electricity prices in the European Union (EU), throughout a period of deep sector transformation. Relying on Eurostat data, not only we analyze the long-term progress of household electricity prices across the EU, but also we provide empirical evidence on their determinants while confronting the results with the EU energy policy path. For this purpose a firsthand approach is herein developed based on a dynamic model with panel data through GMM proposal method by Blundell and Bond (1998) [4] with the Windermeijer (2005) [41] correction. The data analysis provides grounds for a relation between the variable of household electricity prices with variables related to sector liberalization, renewable energy sources which support the EU policy to boost liberalization. This study offers evidence that the sector liberalization is accompanied by a decreasing trend in prices, which is consistent with the European Commission's objectives to liberalize.

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Section: The Evolution Of the Eu Electricity Marketmentioning

confidence: 99%

Assessing the determinants of household electricity prices in the EU: a system-GMM panel data approach

Silva

Cerqueira

2017

Renewable and Sustainable Energy Reviews

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“…Although we cannot yet establish a post-juncture path dependent period of significant duration, we consider the period of a potential critical juncture to begin with Portugal's financial crisis in 2010, and end with the exit of the Troika in 2014. In 2007, the purchase obligation for energy under the special regime (renewables and cogeneration) was extended to the last-resort supplier, leaving RES generators effectively outside the wholesale market (Amorim et al 2013). Between 2006 and 2008, Portugal ran a three phase multi-criteria auction for a total of 1.8 GW, where lowest possible development costs only weighted 20% to the final tender decision, while 45% of the bid decision was made to ensure high direct and indirect investment volumes, as well as a high job creation and gross added value around the development of renewables (Del Río et al 2016).…”

Section: Portugal's Renewable Energy Transition and The Financial Crisismentioning

confidence: 99%

Portugal under austerity: from financial to renewable crisis?

Andreas

Burns

Touza

2019

Environ. Res. Commun.

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Portugal was hit hard by the global financial crisis, with concomitant effects upon the development of its renewable energy sector. The imposition of austerity has had negative impacts upon the further development of the Portuguese renewables sector, prompting the question of whether we have seen a critical juncture that will lead to a new policy trajectory. Historical institutionalist analysis demonstrates a range of unintended consequences arising from the pursuit of austerity in Portugal, yet no true critical juncture to the country's commitment to renewable electricity. The path dependent structure of the Portuguese electricity market and the export bottleneck between the Iberian Peninsula and Central Europe are identified as critical variables explaining the sub-optimal policy trajectory. We conclude that resolving this bottleneck will be critical for Portugal to reduce current financial and electricity price pressures, and continue its renewable energy transition.

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“…The aim was to reduce dependency on imported fossil fuels and to allow a reduction in Green House Gas (GHG) emissions. The large deployment of RES-E generation in Europe was achieved through a programme of strong financial support mechanisms (Amorim et al, 2013;Jager et al, 2011;Meyer, 2003), like feed-in tariffs, feed-in premia, fiscal incentives, tax exemptions and others. The RES electricity (RES-E) generation in Europe was 467,7 TWh in 2013 consisting of 42.4% hydroelectric, 27.4% wind, 10.4% solar, 9,9% biomass and 10% of other renewable technologies (Eurostat, 2015).…”

Section: A Brief Overview Of the Eu Legislative Frameworkmentioning

confidence: 99%

“…The large deployment of RES-E generation and namely of wind power in Europe was achieved by strong financial support mechanisms, including feed-in tariffs, fiscal incentives and tax exemptions (Amorim et al, 2013;Jager et al, 2011;Meyer, 2003). This poses new challenges, both in the technical sense and in the market design.…”

Section: Renewables Deployment In Iberiamentioning

confidence: 99%

Evaluating the market splitting determinants: evidence from the Iberian spot electricity prices

2015

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Assess determinants on market splitting behaviour of Iberian electricity markets. Logit and non-parametric models to express market splitting probability response. Explanatory variables: wind, hydro, thermal and nuclear power; ATC and demand. Results: increase of market splitting probability with higher availability of low marginal cost electricity. Coordination policies governing both interconnections and renewables deployment. a b s t r a c tThis paper aims to assess the main determinants on the market splitting behaviour of the Iberian electricity spot markets. Iberia stands as an ideal case-study, where the high level deployment of wind power is observed, together with the implementation of the market splitting arrangement between the Portuguese and the Spanish spot electricity markets.Logit and non-parametric models are used to express the probability response for market splitting of day-ahead spot electricity prices as a function of the explanatory variables representing the main technologies in the generation mix: wind, hydro, thermal and nuclear power, together with the available transfer capacity and electricity demand. Logit models give preliminary indications about market splitting behaviour, and then, notwithstanding the demanding computational challenge, a non-parametric model is applied in order to overcome the limitations of the former models.Results show an increase of market splitting probability with higher wind power generation or, more generally, with higher availability of low marginal cost electricity such as nuclear power generation.The European interconnection capacity target of 10% of the peak demand of the smallest interconnected market might be insufficient to maintain electricity market integration. Therefore, pro-active coordination policies, governing both interconnections and renewables deployment, should be further developed.

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How much room for a competitive electricity generation market in Portugal?

Cited by 31 publications

References 9 publications

Assessing the determinants of household electricity prices in the EU: a system-GMM panel data approach

Assessing the determinants of household electricity prices in the EU: a system-GMM panel data approach

Portugal under austerity: from financial to renewable crisis?

Evaluating the market splitting determinants: evidence from the Iberian spot electricity prices

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