Larsen

Workshop Gaz presentations available online

gislarsen — Mon, 17 May 2010 00:00:00 +0000

The presentations made during the Workshop “Competition and Integration of European Gas Markets” jointly organized by EDF R&D and LARSEN in april 2010 are available online.

Special issue of Energy Policy

gislarsen — Mon, 17 May 2010 00:00:00 +0000

The special issue of Energy Policy (vol. 38, n°7, april 2010) edited by J.M. Glachant and D. Finon (LARSEN) on “Large-scale wind power in electricity markets” is published. Please go to the elsevier[link] site for an online version.

Competition and integration in European gas markets

gislarsen — Fri, 09 Apr 2010 00:00:00 +0000

Workshop LARSEN and EDF R&D

Competition and Integration of European Gas Markets

Friday 9th april 2010

The seminar was focussed on two topics: How gas markets in Europe develop ? And how to make gas markets more efficient and for this purpose more integrated ? The aim of this seminar was to: a) Discuss results of research concerning gas markets, in particular imperfect competition on gas markets, from an analytical, methodological and predictive perspective. b) Discuss regulatory changes to make the European gas market more efficient in terms of security of supply and competition. c) Integrate the evolution of the regional and world gas markets (LNG trends, non conventional gas emergence) in the analysis of competition development and gas security issue.

Programme [slides[pdf]]

Session 1: Gas markets outlook and strategies of market players in Europe. Chaired by Jacques De JONG

Mid term and long-term outlook for the European gas market: the impact of the emergence of a LNG market and non conventional gas production. By Anne Sophie CORBEAU, IEA [slides[pdf]]

Russia’s gas strategy towards the European Union, By Catherine LOCATELLI , LEPII, Grenoble University [slides[pdf]].

Should we maintain long-term contracts and price indexation on oil products? By Jonathan STERN, Oxford Institute of Energy Studies [slides[pdf]]

Roundtable: What will be the main strategic adaptations of gas firms to market improvements and demand reduction? Chaired by Jacques De JONG, Dominique VENET (VP EDF Gas Division), A-S. CORBEAU, Catherine LOCATELLI, J. STERN

Session 2. The effects of imperfect competition on the European market (and the world market): How modelling can help? Chaired by Dominique FINON

Imperfect Models of Imperfect Competition in EU Gas Markets: Great Potential, Great Shortcomings by Ben HOBBS, Professor, John Hopkins University and Senior research associate EPRG, Cambridge University [slides[pdf]]

Cooperation among LNG suppliers: Is Rationalization the Sole Objective? by Olivier MASSOL, IFP [slides[pdf]]

Economising on seasonal storage: which rule works best? By Anna CRETI, Professor, Nanterre University and Senior research fellow, CECO, Polytechnique [slides[pdf]]

Gas release : how to weaken incumbent suppliers without strengthening foreign producers? By Laure DURAND-VIEL, Université Paris-Dauphine, CREST-LEI and Corinne CHATON, EDF [slides[pdf]]

Session 3. Policies for improving energy security and competition in Europe.

Regulatory framework and investment in gas transmission: Towards a new EU regulation as a response to the need for more market integration. By Jacques de JONG, Clingendael [slides[pdf]]

The limits of the EU direct foreign gas policy : lessons from the Southern Corridor policy , By Dominique FINON, Larsen & CIRED-Cnrs [slides[pdf]]

A Market Between Us: Reducing the Political Cost of Europe’s Dependence on Russian Gas by Market Integration and Solidarity, By Pierre NOEL (EPRG Cambridge University & European Council on Foreign Relations) [slides[pdf]]

Round table: European gas reforms and policies. Chaired by Dominique Finon. Jacques DE JONG (Clingendael), Pierre NOEL (EPRG Cambridge), Benoit ESNAULT (Commission de regulation de l’énergie), Fabrice NOILHAN (EDF Gas Division) , Jonathan Stern (Oxford Institute of Energy Studies).

Option values of low carbon technologies policies

gislarsen — Thu, 04 Mar 2010 00:00:00 +0000

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 we develop an analytical model to analyze the interrelation between irreversible investments and learning effects within a context of uncertainty. Whereas the irreversibility effect usually justifies limiting irreversible investment in a context of uncertainty, we show that this result can be reversed in presence of learning effects. Learning effects can justify the early development of a technology in order to have the technology ready to face intermediate objectives which will appear essential in order to reach CO2 emissions reductions targets.

Policy choices for the deployment of large scale low carbon technologies

gislarsen — Wed, 03 Mar 2010 00:00:00 +0000

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 during pre-commercial deployment of large scale and intertwined technologies. We first analyze the market failures inherent to the barriers to innovation that exist in the market, which justify support during the learning investment phase and the subsequent roll out of CCS capacity in electricity generation. Then we analyze and compare the efficiency of the different ways to help support CCS technologies to cross this so-called “death valley”: command and control instruments (CCS mandates, low carbon ratios on production), investment support under different designs (direct subsidy, tax credit, subsidy by trust fund) and production subsidies (guaranteed carbon price, feed-in price, amongst others). These instruments are compared and contrasted according to four criteria: effectiveness, static efficiency, dynamic efficiency and timing (adequacy to the technology development stage). We conclude that policy instruments must be adapted to the technological and commercial maturity of the CCS system at some point between the demonstration stage and the purely commercial deployment stage. In particular mandate policies must be handled with some care. With regards to subsidization mechanisms, their design must be market-oriented, this is particularly the case with auctioning, in order to limit information asymmetries between CCS investors and regulators.

Two new working papers

gislarsen — Sat, 27 Feb 2010 00:00:00 +0000

Dominique Finon, “Efficiency of policy choices for the deployment of large scale low carbon technologies : the case of Carbon Capture and Sequestration (CCS)”. Dominique Finon, Guy Meunier, “Option values of low carbon technologies policies: how to combine irreversibility effect … read →

A new book

gislarsen — Wed, 27 Jan 2010 00:00:00 +0000

LARSEN publish in January 2010 a book entitled “Competition and public policies in electricity markets”, gathering seven recent LARSEN working papers (in english and in French). Free download.

Competition and public policies in electricity markets

gislarsen — Fri, 01 Jan 2010 23:46:19 +0000

Book : Competition and public policies in electricity markets LarsenWP2009_wb

The role of transmission investment

gislarsen — Tue, 01 Dec 2009 00:00:00 +0000

1rt December 2009 from 10 am to 12 am

GIS LARSEN, Campus de Fontenay aux Roses

The role of transmission investment in the coordination between generation and transmission in the liberalized power systems

Abstract : This paper examines how transmission coordinates with generation to the long term in a liberalized power system. We rely on a modular analysis to separate the mechanisms of coordination between generation and transmission of electricity into distinct modules. The governance structure of transmission completes this analysis framework. We then show that in a logic of complementarity, this governance structure influences the options that TSO implements to manage effectively power flows. Although locational signals are necessary to guide the installation of new power plants, the governance structure explains that investment in network may be the only effective method of longterm coordination between generation and transmission.

A paper written with Jean-Michel Glachant, Yannick Perez and Philippe Dessante. See the paper :[pdf]

Next academic seminar : V. Rious (Supelec)

gislarsen — Tue, 01 Dec 2009 00:00:00 +0000

1st December 2009 from 10 am to 12 am. Vincent Rious (Supelec) : ” The role of transmission investment in the coordination between generation and transmission”.