Working Paper
Option values of low carbon technologies policies
How to combine irreversibility effect and learning-by-doing in decisions?
March 4, 2010
- D. Finon, G. Meunier - 
Abstract : in this paper we analyze the development and deployment of largescale low carbon technologies. We first review several issues at stake for the development of a technology still in infancy and characterized by major learning effects. Then 
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Policy choices for the deployment of large scale low carbon technologies
The case of Carbon Capture and Sequestration (CCS)
March 3, 2010
- D. Finon -
Abstract : This paper analyses a set of policy instruments needed to support investment during the learning phase in the deployment stage of CCS technologies following the demonstration stage. We focus on the specific barriers to learning investment
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Comparison of long-term contracts and vertical integration
November 28, 2009
- R. Meade, S. O'Connor -
Abstract : A common view is that electricity sectors should be unbundled and opened to competition, and that in such decentralised markets long-term contracts are necessary to constrain generator market power, elicit competitive entry in retailing,
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Price signals and long term equilibrium [in French]
Re-thinking the organisation of electricity markets
November 22, 2009
- D. Finon, C. Defeuilley, F. Marty -
Résumé : Les industries électriques ont été libéralisées en référence au modèle d’équilibre de marché. Dans ce modèle, les agents se font concurrence aux différents étages de la filière sur des marchés de gros et de détail
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Catching-up the maximum market value of electricity storage
November 20, 2009
- X.He, G. Zachmann -
Abstract : The creation of competitive wholesale electricity markets allows to evaluate the “arbitrage value” of an electricity storage unit, which stems from buying and storing electricity when prices are low, and selling it when prices are
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Large-scale wind power in european electricity markets
Time for revisiting support schemes and market designs ?
June 26, 2009
- C. Hiroux, M. Saguan -
Summary : This paper questions whether current renewable support schemes and electricity market designs are well-suited to host a significant amount of wind energy. Our analysis aims at finding the right equilibrium between market signals received
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Retailer’s risk management and vertical arrangements
June 25, 2009
- R. Boroumand, G. Zachmann -
Abstract: The failure of the asset light retailer’s economic model is indicative of the incapacity of this organizational structure to manage efficiently the combination of sourcing and market risks in the current market environnment. Because
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HHI, an irrelevant indicator without a relevant market
April 24, 2009
- D. Perrot-Voisard, G. Zachmann -
Summary. For evaluating the concentration effects of horizontal unbundling or mergers in the electricity industry a one-number-indicator is desirable. But, the three most widely applied measures (HHI, PSI and RSI) are per se unable to represent
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Photovoltaic, the inadequacy of the feed-in tariff [in French]
February 23, 2009
- D. Finon -
Summary : The current policy of guaranteed feed-in tariffs on photovoltaic lacks rationality: no degression of tariffs, overlong duration of engagements, no ceiling on developed capacities, weak readability of support mechanisms accumulation (tax
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To smooth the extinction of regulated tariffs [in French]
February 19, 2009
- C. Defeuilley, D. Finon -
Summary : The liberalization of electricity markets in Europe sounded the knell of regulated tariffs for domestic customers. The administrative regulation of price does not seem compatible with the European community-based objectives aiming to build
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Capacity choice, Technology mix and market power
December 2, 2008
- G. Meunier -
Summary : This paper investigates strategic capacity choices in an electricity markets with heterogenous firms. With a competitive wholesale market, the paper focusses on long term strategic investment. Two technologies are available to produce
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Competition dynamics with switching costs
British Gas (1997-2007)
November 15, 2008
- C. Defeuilley, M. Mollard -
Summary : Theoretical models with switching costs demonstrated that, in a dynamic game, firms have incentives to adopt two-period strategies. Firms “invest” in markets at an early stage in their development to be able to “harvest” in later
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The asset light retailing model’s curse [in French]
October 17, 2008
- R. Boroumand -
Summary: The failure of pure electricity suppliers is indicative of the incapacity of their organizational model to manage efficiently the combination of sourcing and market risks in a setting of fierce price competition. Because of the structural
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Generation adequacy and transmission interconnection
in regional electricity markets
October 7, 2008
- M. Cepeda, M. Saguan, V. Pignon -
Summary : Power system adequacy has currently public good features that cannot be entirely solved by electricity markets. Regulatory intervention is then necessary and old methods to assess adequacy have been used to help regulators to fix this
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Legal uncertainty and competition policy in deregulated industries
The case of long term contracts
June 28, 2008
- A. de Hauteclocque -
Summary : The case of long-term vertical contracts in the EU electricity markets is a topical example of the difficulties faced by Competition authorities with the liberalization of network industries. Their ambiguous effects on the competitive
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Contractual and financing arrangements for new nuclear build
May 28, 2008
- D. Finon, F. Roques -
Summary : The paper studies how the risks specific to a nuclear power investment in liberalised markets – regulatory, construction, operation and market risks – can be mitigated or transferred away from the plant investor through different
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Investment risk allocation in restructured electricity markets
April 28, 2008
- D. Finon, Y. Perez -
Summary : None of the far-reaching experiments in electricity industry liberalization proved able to ensure the timely and optimal capacity mix development. The theoretical market model features failures attributable to the specific volatility of
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Risk management and vertical integration [in French]
April 25, 2008
- C. Defeuilley, G. Meunier -
Summary : The reforms endeavoured in the electric sector should have led to a complete reshaping of the industrial structures, regulation modes and exchanges coordinating devices. Instead, most of the electric systems remain organized around
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Competition policy in European electricity markets [in French]
April 20, 2008
- U. Dubois -
Abstract : This article is a critical analysis of the instruments and practices of European competition policies regarding market power on wholesale electricity markets. Because of the specificities of the electricity sector, competition policies
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The ineluctable electricity prices rise in France [in French]
January 20, 2008
- D. Finon, J.M. Glachant -
Abstract
The competitive reform will inescapably breeds price rise for french consumers when regulated tariffs will be suppressed.This rise is due to the price formation mechanism in the continental market.This mechanism enables existing nuclear
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The social efficiency of long-term capacity reserve mechanisms
January 20, 2008
- D. Finon, G. Meunier, V. Pignon -
Summary : in Public Economics, the simple supply mechanism for a collective good is the centralised provision by government, and paid by all beneficiaries through a small and targeted tax. In the case of capacity adequacy in power supply, which
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Price formation in a market dominated nuclear [in French]
A research of equilibrium between efficiency and equity
November 1, 2007
- Elliot Romano -
Abstract :The price of electricity on the european wholesale market has more than doubles between 2002 and 2006. Because of market integration, this rise affects the wholesale price in France, eventhough nuclear technology is dominant. The increase
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Sub optimal investment in oligopolistic electricity markets
Market power and public firm investment
June 30, 2007
- Dominique Finon, Guy Meunier -
Summary : in a context of concentrated electricity industries and entry barriers, governments may worry that incumbent firms strategically under-invest in generation. Associated with the well known short-term strategy of production restriction,
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Retail competition in electricity markets
June 15, 2007
- Christophe Defeuilley -
Summary : The introduction of competition into retail electricity supply gave rise to great expectations. However, to date its performance has proven less than stellar, owing primarily to the theoretical concepts underpinning this reform, which draw
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Alternative market designs in EU electricity balancing
An institutional frame to compare alternative market designs in EU electricity balancing
December 15, 2006
- Jean-Michel Glachant, Marcelo Sagan -
Summary : The so-called “electricity wholesale market” is, in fact, a sequence of several markets. The chain is closed with a provision for “balancing”, in which energy from all wholesale markets is balanced under the authority of the
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Nuclear investment conditions in market environment [in French]
December 1, 2006
- Dominique Finon -
After a long period of aphasia of nuclear investments due to political hurdles and strong reglementations, government from industrialised countries consider a new nuclear energy as a major political option for climate risks and long term security of
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Electricity and long term capacity adequacy
The quest for regulatory mechanism compatible with electricity market
November 15, 2006
- Dominique Finon, Virginie Pignon -
Summary : the paper deals with theoretical aspects of long term electricity supply security. Market prices and contractual arrangements on the physical and financial electricity markets do not allow to create sufficient incentives to invest in
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Risk management for a non-storable commodity [in French]
November 1, 2006
- Christophe Defeuilley, Guy Meunier -
Summary : the reforms endeavour in the electric sector should have led to a complete reshaping of the industrial structures, regulation modes and exchanges coordinating devices. Instead, most of the electric systems remain organized around
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