Avril, S., Mansilla, C., Busson, M., and Lemaire, T.
Energy Policy. Dec2012, p244-258. 15p.
Photovoltaic power generation, Energy policy, Energy economics, Electricity, Parameter estimation, Performance evaluation, Public support, and Caloric expenditure
Abstract: The recent growth of photovoltaic (PV) electricity generation despite its high levelized costs is largely explained by strong national policy supports. Indeed, renewable energy sources are receiving increasing support worldwide from public authorities because of the environmental benefits they bring in comparison with conventional energy sources. Thus, many countries have set targets for PV deployment. The possibility to achieve them at a lower cost has now become a central issue, making it necessary to examine the efficiency of the instruments used to promote PV. After describing the mechanisms of the impact of demand and supply on the reduction cost of PV systems, the public support for PV is assessed for five representative countries (France, Germany, Japan, Spain and the US) from an extensive policy review. Based on their financial evaluations, the performances of these policies are compared from the different states of PV development in each country. The main conclusion is that it is necessary to have a well-planned policy, i.e., with a controlled level of expenditures and balanced allocation of these, in order to install the desired amount of PV, to control its impact on the electricity prices and to give a sufficient visibility to the industrialists. [Copyright &y& Elsevier]
Electricity, Carbon dioxide mitigation, Energy economics, Energy consumption, Caloric expenditure, Boiler efficiency, Steam generators, and Prices
Abstract: The EPA will issue rules regulating greenhouse gas (GHG) emissions from existing steam boilers and refineries in 2012. A crucial issue affecting the scope and cost of emissions reductions will be the potential introduction of flexibility in compliance, including averaging across groups of facilities. This research investigates the role of compliance flexibility for the most important of these source categories—existing coal-fired power plants—that currently account for one-third of national emissions of carbon dioxide, the most important greenhouse gas. We find a flexible standard, calibrated to achieve the same emissions reductions as a traditional(inflexible) approach, reduces the increase in electricity price by 60 percent and overall costs by two-thirds in 2020. The flexible standard also leads to substantially more investment to improve the operating efficiency of existing facilities, whereas the traditional standard leads to substantially greater retirement of existing facilities. [Copyright &y& Elsevier]
Energy Economics. Nov2012, Vol. 34 Issue 6, p2058-2065. 8p.
Prices, Market volatility, Energy economics, Vector error-correction models, Dynamics, Electricity, and Caloric expenditure
Abstract: The purpose of this study is to investigate the causal linkages between the Spanish electricity, Brent crude oil and Zeebrugge (Belgium) natural gas 1-month-ahead forward prices. Following Lütkepohl et al. (2004), we control for the presence of a structural change in the series and then we use the Johansen cointegration test and a vector error correction model (VECM) to embrace the analysis. Additionally, a multivariate generalized autoregressive conditional heteroskedastic (GARCH) model is applied to explore volatility interactions between the three markets involved in the study. Our findings reveal that Brent crude oil and Zeebrugge natural gas forward prices play a prominent role in the Spanish electricity price formation process. Furthermore, causation, both in price and volatility, runs from Brent crude oil and natural gas forward markets to the Spanish electricity forward market. These results are of practical importance for both the wholesale and retail markets'' participants as well as the regulator through the established link between the forward contracts'' price and the Spanish tariff of last resort paid by more than 23million of customers. [Copyright &y& Elsevier]
Hellström, Jörgen, Lundgren, Jens, and Yu, Haishan
Energy Economics. Nov2012, Vol. 34 Issue 6, p1774-1781. 8p.
Energy economics, Empirical research, Markets, Time series analysis, Economic models, Prices, Economic structure, Electricity, and Caloric expenditure
Abstract: The paper empirically explores the possible causes behind electricity price jumps in the Nordic electricity market, Nord Pool. A time-series model (a mixed GARCH–EARJI jump model) capturing the common statistical features of electricity prices is used to identify price jumps. By the model, a categorical variable is defined distinguishing no, positive and negative jumps. The causes for the jumps are then explored through the use of ordered probit models in a second stage. The empirical results indicate that the structure of the market plays an important role in whether shocks in the demand and supply for electricity translate into price jumps. [Copyright &y& Elsevier]
Benth, Fred Espen, Kiesel, Rüdiger, and Nazarova, Anna
Energy Economics. Sep2012, Vol. 34 Issue 5, p1589-1616. 28p.
Empirical research, Prices, Economic models, Energy economics, Parameter estimation, Electricity, and Caloric expenditure
Abstract: We conduct an empirical analysis of three recently proposed and widely used models for electricity spot price process. The first model, called the jump-diffusion model, was proposed by Cartea and Figueroa (2005), and is a one-factor mean-reversion jump-diffusion model, adjusted to incorporate the most important characteristics of electricity prices. The second model, called the threshold model, was proposed by Roncoroni (2002) and further developed by Geman and Roncoroni (2006), and is an exponential Ornstein–Uhlenbeck process driven by a Brownian motion and a state-dependent compound Poisson process. It is designed to capture both statistical and pathwise properties of electricity spot prices. The third model, called the factor model, was proposed by Benth et al. (2007). It is an additive linear model, where the price dynamics is a superposition of Ornstein–Uhlenbeck processes driven by subordinators to ensure positivity of the prices. It separates the modelling of spikes and base components. We calibrate all three models to German spot price data. Besides employing techniques similar to those used in the original papers we adopt the prediction-based estimating function technique (Sørensen, 2000) and the filtering technique (Meyer-Brandis and Tankov, 2008). We critically compare the properties and the estimation of the three models and discuss several shortcomings and possible improvements. Besides analysing the spot price behaviour, we compute forward prices and risk premia for all three models for various German forward data and identify the key forward price drivers. [Copyright &y& Elsevier]
Global Energy Market Research: Egypt. Dec2009, p13-13. 1p.
Prices, Caloric expenditure, Gas prices, and Electricity
The article offers information on the energy prices in Egypt. It states that the prices of gasoline and diesel were 0.49 dollars per liter and 0.20 dollars per liter, respectively, while the price of electricity for households is 2.9 dollars cost per kilowatt hour (c/kWh). Moreover, the authorities plan to reduce the prices for industry following the decline in international prices.