When indicators fail electricity policies: Pitfalls of the EU's retail energy market Barrier Index

Almeida, Lucila de; Esposito, Fabrizio; Zeben, Josephine van

doi:10.1016/j.enpol.2022.112892

Cited by 11 publications

(4 citation statements)

References 15 publications

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“…This concept is vital to the success of reducing oil dependency, controlling fossil fuel emissions and mitigating environmental damage-in order to achieve a reliable global energy system for the European Union. It is worth paying attention to the research of L. de Almeida, F. Esposito and J. van Zeben [7], who prove that an important goal of the EU energy policy is to ensure energy justice and openness of retail energy markets of the member states to new participants. M. Simionescu [8], the author of this case, suggested specific policies for each country group regarding energy usage per capita.…”

Section: Methodsmentioning

confidence: 99%

Changes in the energy supply strategy of the EU countries amid the full-scale Russian invasion

Kravchenko

Ilyash

Smoliar

et al. 2023

IOP Conf. Ser.: Earth Environ. Sci.

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Russia’s full-scale invasion of Ukraine could have a profound impact on short-term solutions to the energy crisis (due to the loss of long-term contracts for additional volumes of Russian gas). It could block a unified agenda because of diverging interests of European countries, reduce European negotiating power, and therefore, weaken Europe’s resistance to Russian energy coercion in the long term. The article confirms the hypothesis that the European energy crisis leads to a slowdown in production and is caused primarily by smaller gas reserves, higher prices and tighter global supplies. Based on the study of a specially developed index and the results of assessing the state of energy independence of the European Union since the beginning of the 21st century made it possible to carry out the task of researching changes in the energy supply system of the EU countries against a background of the Russian war. The demonstration of a map of the most relevant ways of importing pipelines to the EU indicates the need to change the directions of diversification of the energy imports structure. The goal-setting of the directions of implementing the «Fit For 55» programme regarding the reduction of gas consumption by 2030 was studied and the strategy of reducing the dependence of the European Union on Russian gas was analysed.

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Section: Methodsmentioning

confidence: 99%

Changes in the energy supply strategy of the EU countries amid the full-scale Russian invasion

Kravchenko

Ilyash

Smoliar

et al. 2023

IOP Conf. Ser.: Earth Environ. Sci.

View full text Add to dashboard Cite

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“…The Herfindahl-Hirschman Index (HH I) is formulated according to Equation (3). This index is expressed as the sums of the squares of market shares of n power electric power companies [15] where CR i stands for a market share of the i-th electric power company, and n means the number of companies. This measure of market concentration may range from 0 to 10,000, where higher values mean greater market concentration [10].…”

Section: Methodsmentioning

confidence: 99%

“…The comparison of this approach with basic power market indices (such as concentrations and share, Residual Supplier Index, and Entropy coefficient) confirms their reliability and effectiveness. In contrast, Almeida et al [15] compared the classic market power indices (such as the Herfindahl-Hirschman Index) to the Barrier Index recently developed to identify the barriers to entry into European energy markets. The results show that the Barrier Index diverges from previous indices, has failures in methodology, and may lead to inappropriate decisions made by policymakers.…”

Section: Literature Reviewmentioning

confidence: 99%

Revisiting Market Power in the Polish Power System

2023

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The consequences of the liberalisation of electricity markets have been widely discussed in the literature emphasising the successes or failures of privatisation and deregulation. While most developed power systems have undergone a form of economic transformation, they still require to be monitored and analysed to assess market power. The Polish power system is an example wherein the potential of market power examined fifteen years ago was summarised as significant. Since then, the transformation process and changes in the ownership structure have taken place. This study focuses on the assessment of the potential of market power in the Polish electricity market. For this purpose, statistics on power companies were collected and processed. Then, structural and behavioural measures were applied, including concentration ratios, the entropy coefficient, the Gini coefficient, the Herfindahl–Hirschman Index (HHI), the Residual Supply Index (RSI), and the Lerner Index. The results reveal that, despite a dynamic increase in renewable capacity, market concentration has increased in recent years, achieving an HHI of 2020.9 in 2021. An increase in the Lerner Index of lignite and hard coal-fired units is also observed, indicating high mark-ups by the key market players. Based on quantitative analysis, policy recommendations are outlined to reduce the negative impact of market power on consumers.

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“…It is challenging to draw in customers when they have little knowledge or engagement. [24]. It is possible that people will not pick renewable energy since they are worried about the high purchase prices associated with it because it demands an initial investment.…”

Section: Introductionmentioning

confidence: 99%

Optimizing Power Exchange Cost Considering Behavioral Intervention in Local Energy Community

et al. 2023

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In order to encourage energy saving and the adoption of renewable sources, this study provides a comprehensive experimental framework that integrates socioeconomic and behavioral objectives for the local energy community. The experiment aims to find out how successfully using behavioral interventions might encourage customers to save electrical energy and encourage them to adopt renewable energy, e.g., solar photovoltaic energy, in the present case. Using this method, we can calculate the causal impact of the intervention on consumer participation in the local electricity sector. The study uses consumer data on the import and export of electrical power from retailer electricity utilities at a predetermined power exchange price and a midmarket price for local energy community power transactions. The local energy community model simulates the consumption, storage, and export of 20 residential customers who, in different scenarios, are the test subjects of an empirical experiment and embrace electricity conservation and renewable energy. We address the optimization issue of calculating the power exchange cost and revenue in various scenarios and comparing them with the base case cost. The cases are built on the customers’ behavioral interventions’ empirical response. The findings demonstrate that the interaction of socioeconomic and behavioral objectives leads to impressive cost savings of up to 19.26% for energy utility customers. The policy implication is suggested for local energy utilities.

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When indicators fail electricity policies: Pitfalls of the EU's retail energy market Barrier Index

Cited by 11 publications

References 15 publications

Changes in the energy supply strategy of the EU countries amid the full-scale Russian invasion

Changes in the energy supply strategy of the EU countries amid the full-scale Russian invasion

Revisiting Market Power in the Polish Power System

Optimizing Power Exchange Cost Considering Behavioral Intervention in Local Energy Community

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