Liberalization Of Energy Market Research Articles

On a New Sustainable Energy Policy: Exploring a Macro-Meso-Micro Synthesis

This study examines the differences between the emerging new energy policy and its predecessor, offering guidelines for an integrated approach to support a rapid and sustainable energy transition. Using a bibliometric and qualitative integrative analysis of 360 scientific articles on energy policy, ecosystems, and entrepreneurship—supplemented by insights from 16 experts in the European energy sector and an in-depth analysis of 89 relevant business cases—this research identifies a significant shift in priorities. Traditional concerns, such as energy security, self-sufficiency, and market liberalization, are increasingly giving way to a focus on rapid, sustainable energy transitions and development at the macrolevel. The findings reveal that contemporary energy policies are progressively prioritizing integrated strategies across the macrolevel, mesolevel, and microlevel. At the macrolevel, policies are increasingly focused on enabling efficient transitions and promoting sustainable development within an ecosystemic framework. At the mesolevel, there is a growing emphasis on strengthening regional energy ecosystems. At the microlevel, the focus increasingly shifts toward empowering energy firms through innovative organizational strategies, technological advancements, and enhanced managerial practices. The proposed integrated energy policy aims to address these broader goals while fostering diverse energy ecosystems and communities at the mesolevel. Additionally, it emphasizes the importance of empowering individual energy firms by enhancing their strategies, technological capabilities, and managerial skills. These improvements are essential for driving innovation, developing green business models, strengthening corporate social responsibility, and aligning with the principles of Resilience, Adaptability, Sustainability, and Inclusiveness (RASI).

Resource Adequacy and Integration of Renewables in Light of US, EU, and Pakistan’s Evolving Power Sector

This study investigates resource adequacy and renewable energy integration in the United States, European Union, and Pakistan amid global energy market liberalization and greenhouse gas reduction efforts. It explores how these regions are adapting to the surge in renewable sources like wind and solar, which, despite their financial and environmental benefits, challenge resource adequacy and the economic viability of traditional energy sources. In the US and EU, significant improvements have been introduced in wholesale electricity markets and capacity accreditation mechanisms, which enhanced the large-scale deployment of renewables. This shift has prompted a reevaluation of resource adequacy, leading to the increased deployment of battery storage and demand response. Presently, gas-based generation is largely upholding resource adequacy; however, future trends indicate a move towards greater consumer participation, energy efficiency, and utility-scale storage, with a decline in fossil fuel use. Pakistan aims to adopt a liberalized market structure by balancing competitive markets with legacy contracts. Public pressure is driving a shift from costly fossil-based generation to renewables. Similarly, a trend in the rise of behind-the-meter solar generation can be witnessed. In the future, Pakistan may also experience resource adequacy challenges. It will likely need to implement battery storage, demand response, and modern capacity accreditation tools, by drawing lessons from developed markets.

Encounters of hesitant politics and an unwavering energy transition. Media reflections in Romania

The paper examined how political hesitancy shaped the energy transition in Romania. Aiming to reveal the contribution of the media to (re)frame energy transition, we employed topic modelling to identify the core categories that marked the interplay of actors and institutions, value systems, contingent power and resources, and the underlying policy setting. Results revealed eight major categories covering institutional setting and power struggle; the wider economic context; incumbent energy fossil fuels companies – repositioning; emerging green energy actors – positioning; geopolitics; heating and energy distribution; corporate social responsibility; energy market liberalisation, and a residual category related to press verbosity. Through these results we contributed to a finely-grained identification of specific themes on Romanian energy, added insights on how hesitancy is enacted through delays, circumventing the rules, establishing non-compliance, and denials. Our approach showed that the power transmitted by various actors through the media was politically marked and incongruent to the holistic paradigm that energy transition should embrace. Aside from its empirical focus, this paper also contributes by engaging with the hesitant politics concept that provided a flawed solution that while looked counterproductive it also proved invaluable in dodging the complex and uncertain paths of energy transition.

A Novel Technique for the Optimization of Energy Cost Management and Operation of Microgrids Inspired from the Behavior of Egyptian Stray Dogs

Managing costs in microgrids presents a formidable challenge due to the intricate blend of renewable and non-renewable energy sources that underpin their power generation. Ensuring seamless integration of microgrids with the national grid is pivotal for continuous load demand satisfaction and adherence to liberalized energy market mandates. To address this challenge, this paper introduces a new optimization technique for the Cost Management and Operation System (CMOS) of multi-source microgrids through a smart management unit. The cornerstone of this unit is the Egyptian Stray Dog Optimization (ESDO) algorithm, meticulously designed to optimize operational costs in line with load demands, energy cost dynamics, and generation proficiencies. Rigorous testing of the proposed system was conducted on a multi-resource microgrid using MATLAB, encompassing various operational scenarios. The simulation outcomes consistently highlighted the unit’s capability to achieve optimal cost-efficiency. Comparative analysis with other optimization techniques, particularly Particle Swarm Optimization (PSO), demonstrated the superior performance of the Egyptian Stray Dog algorithm, underscoring its potential as a leading solution in this domain.

ENERGY REGIONALISM IN WIDER EUROPE: SUB-REGIONAL ENERGY DYNAMICS AND THE EU’S EASTERN PARTNERSHIP

This article investigates energy regionalism in wider Europe, examining extra-regional and intra-regional challenges. In recent years, the European Union (EU) has taken concrete steps to enhance its energy security and reduce its dependence on Russia. Russia's invasion of Ukraine has further highlighted the critical dimension of the energy crisis between Russia and the EU. This study emphasizes the vital role of sub-regional energy dynamics in regional policy formulation and criticizes the EU's regional approach. In this realm, the article assesses the EU's Eastern Partnership through the Caucasus Eastern Partnership countries (Armenia, Azerbaijan, Georgia) and the Northeast Europe Eastern Partnership countries (Ukraine, Moldova, Belarus). Thus, countries' recent initiatives will be investigated to demonstrate how they cope with issues of energy security. In the end, the article underlines the necessity for the adoption of tailor-made sub-regional energy policies by the EU. For Northeast Europe Eastern Partnership countries, the EU needs to support energy market liberalization and stability, invest in critical infrastructural developments, foster effective dispute resolution mechanisms, and maintain transparent transit conditions. For Caucasus Eastern Partnership countries, the EU needs to facilitate multilateral energy cooperation and dialogue, promote energy market liberalization, and facilitate energy interconnection. In short, strong political leadership and continuous efforts to foster collaboration and interconnectivity in wider Europe are necessary to enhance energy security.

Switching Behavior in the Polish Energy Market—The Importance of Resistance to Change

(1) Background: Consumer switching behavior was one of the expected outcomes of the ongoing competitive reform in the European electricity industry. The aim of this study is to analyze the factors that affect the intention of consumers to switch from their incumbent supplier, who has a strong market position. This article follows the trend of describing and analyzing the situation of incumbent energy suppliers after energy market liberalization. (2) Methods: The research goal was to verify seven research hypotheses regarding switching intentions on the Polish energy market. For this purpose, structural equation modeling analysis using AMOS 29 was conducted. The survey was carried out in 2020, before the SARS-CoV-2 pandemic in Poland, and the research sample consisted of 1216 adults (clients of the incumbent supplier). (3) Results: Special attention was given to customers’ resistance to change, as it was found to be a factor that can impact customers’ decisions to switch, both directly and indirectly. Resistance to change can affect the trust that customers have in their current supplier’s brand, their perception of the costs involved in switching, and their intention to switch. The research also highlighted the importance of brand trust and perceived ease of change in the customers’ decision-making process. (4) Conclusions: An important factor that reduces switching behavior is the customer’s resistance to change; brand trust is a valuable asset that also reduces switching intention.

The divergence of South Korea's Emissions Trading Scheme (ETS) from the EU ETS: An institutional complementarity view

AbstractEmissions trading schemes (ETS) have spread across the globe to tackle climate change. However, limited attention has been given to how ETS characteristics and designs differ and why. We use the concept of institutional complementarity to explore how the EU ETS and South Korea's ETS (K‐ETS) adapt to complement established political economy. The EU ETS is characterized as a market with stakeholder ownership, while the K‐ETS is more regulatory in nature with government leadership. The EU ETS complements a decentralized political system with liberalized energy market, and the K‐ETS became compatible with the centralized majoritarian politics and a regulated electricity market. The ETSs have evolved incrementally, and they are not likely to link in the foreseeable future due to divergence. We suggest a strong focus on “how to adapt” an ETS to its own institution rather than adopting the established blueprint model in countries with a strong regulatory style of governance.Related ArticlesCaliskan, Cantay. 2020. “The Influence of Elite Networks on Green Policy Making.” Politics & Policy 48(6): 1104–37. https://doi.org/10.1111/polp.12382.Tanaka, Yugo, Andrew Chapman, Tetsuo Tezuka, and Shigeki Sakurai. 2020. “Multiple Streams and Power Sector Policy Change: Evidence from the Feed‐In Tariff Policy Process in Japan.” Politics & Policy 48(3): 464–89. https://doi.org/10.1111/polp.12357.von Malmborg, Fredrik. 2023. “Combining the Advocacy Coalition Framework and Argumentative Discourse Analysis: The Case of the ‘Energy Efficiency First’ Principle in EU Energy and Climate Policy.” Politics & Policy 51(2): 222–41. https://doi.org/10.1111/polp.12525.

The electricity market in Brazil: A multilevel perspective of sector agents for liberalization to residential consumers

The Brazilian electricity market is in the liberalization phase, and residential consumers are not yet allowed to access the free energy grid, having only the option of buying energy from the regulated market at government-regulated tariffs. This study investigates the barriers that hinder the liberalization of the free energy market in Brazil, the role played by each agent in the transition, and the drivers for the participation of residential consumers in this market. Fourteen semi-structured interviews were carried out with experts from the Brazilian electricity sector; findings were analyzed from a multilevel perspective and discussed in light of the literature. Results showed that the free energy market should operate through the interaction of the system levels, i.e., governmental, market, and societal. However, there are still barriers to be overcome, most remarkably the market's complexity, lack of investments in technologies and accessible information, instability in prices paid for the energy, and the population's lack of knowledge about the free market. As for consumers, they should be motivated by the search for more affordable prices, alternatives from renewable sources, and better contractual conditions. Our study provides perspectives and recommendations to assist in designing strategies to liberalize a complex market with unique characteristics.

Weighted shapley value: A cooperative game theory for loss allocation in distribution systems

This paper proposes a new method for assigning distribution system (DS) losses to consumers and distributed generations in the framework of a liberalized energy market. The architecture of the proposed method is based on a synthesis of electrical network analytical theory and cooperative game theory (CGT). Weighted shapely value (WSV) is a solution idea that is regarded to be efficient in CGT for n-player games with characteristic function form. By retaining the notion of electrical networks, the axioms of game theory will be preserved while employing the WSV in loss allocation theory. To allocate system losses, the proposed method estimates the average marginal contribution of each participant to all conceivable coalitions and also determines the weight of the marginal contribution of each participant based on its power rating. Rather than a sequential branch-oriented approach, the proposed methodology is node-oriented. Additionally, a majority rule game is used to constrain the population of a coalition without jeopardizing the efficacy of the solutions to achieve a fair allocation of losses. The results of the proposed method are presented and contrasted with those obtained using the conventional pro-rata method and the well-known Shapley value solution concept in CGT.

Power systems optimization under uncertainty: A review of methods and applications

Electric power systems and the companies and customers that interact with them are experiencing increasing levels of uncertainty due to factors such as renewable energy generation, market liberalization, and climate change. This raises the important question of how to make optimal decisions under uncertainty. This paper aims to provide an overview of existing methods for modeling and optimization of problems affected by uncertainty, targeted at researchers with a familiarity with power systems and optimization. We also review some important applications of optimization under uncertainty in power systems and provide an outlook to future directions of research. • Electric power systems and the companies and customers that interact with them are experiencing increasing levels of uncertainty. • This paper provides an overview of existing methods for modeling and optimization of problems affected by uncertainty, targeted at researchers with a familiarity with power systems and optimization. • We also review some important applications of optimization under uncertainty in power systems and provide an outlook to future directions of research.

Energy Market Liberalization Opportunities for Consumers

Energy Market Liberalization Opportunities for Consumers

Underpinnings of consumer preferences and participation in Japan's liberalized energy market

The energy transition from fossil-based to renewable energy sources is one method of tackling climate change. In Japan and nations with similar, centralized energy supply systems, the challenge to shift from top-down energy planning to bottom-up, citizen-driven change remains a challenge. Thus, it is critical to understand householder preferences and how they influence energy-related behaviors. This study investigates householder consumers' preferences and behaviors regarding changing their energy supply company and their reasoning. Policy implications identified include the need to increase energy options and identify the economic and environmental benefits of market participation.

European Green Deal necropolitics: Exploring ‘green’ energy transition, degrowth & infrastructural colonization

This article critically examines the GND (Green New Deal) platform by exploring the reality of energy development under the European Green Deal (EGD). Taking a special interest in degrowth positions on energy development, the article argues that the European Green Deal is an exercise in necropolitics; intensifying market relationships, extraction, and infrastructural colonization. The article proceeds by reviewing and discussing recent environmental justice and degrowth positions on energy infrastructural development. The methodology outlines desk-based research on resource extraction as well as on the European energy markets. This accompanies multi-sited ethnographic fieldwork, charting environmental conflicts along a 400kv high-tension power line. This line goes across France, Catalonia and Southern Spain, stretching into Morocco and occupied Western Sahara. Unconventional research techniques, such as hitchhiking, enabled mobility and expanding the informal interview pool. Outlining the objectives of the EGD, the next section examines three aspects of its necropolitics. First, necropolitical economy reveals the reality of energy market liberalization under the EGD. Second, necropolitical extraction examines the expansion of mining and mineral processing, which are necessary for the EGD and ‘mainstream’ GNDs. Third, necropolitical operation reveal the reality of ‘a rapid rollout of renewable energy deployment’ by examining infrastructure conflicts along a 400kv power line between France and Spain. The process of infrastructural colonization is detailed, which also introduces different land defender perspectives on degrowth. Affirming the argument that the EGD is an exercise in necropolitics, the conclusion discusses important ways to expand degrowth, energy ecologies and real energy transition.

Trends in the Development of Energy Resources Enterprises-Suppliers in the Conditions of Energy Market Liberalization

The article reveals the trends in the development of energy supply enterprises that have developed under the influence of market liberalization, and identifies the risks that arise for this group of market entities. It has been proven that the liberalization of the market, although not brought to a logical conclusion, has significantly improved the quality of service in the field of energy supply, stimulated the development of innovative products, the transition to more progressive business processes, especially digital ones. Under the influence of the gradual opening of the market, new trends in the development of the supply sector were formed, the main ones of which are: 1) consolidation of the divisional principle of building the organizational structure (with an orientation in the business segment on the service’s individualization, and in the household segment – on the sales’ individualization; 2) creation of new customer models designed to bring the supplier as close as possible to the consumer and to implement an aggressive offensive strategy as the household segment of the market is finally liberalized; 3) digitalization of services; 4) gradual preparation for the shift of emphasis to the use of non-price methods of competition. It was argued that the new market configuration dictates the requirements for the organizational and management structures of suppliers and determines the content of new products on the market. At the same time, the new market model generates significant risks, namely: increased asymmetric nature of competition, monopolization, reduced financial stability of suppliers due to non-payment. Most of these risks are systemic in nature, formed in the external environment and cannot be completely eliminated by the efforts of suppliers in the field of service improvement or the introduction of innovative products. Keywords supplier enterprises, energy resources, liberalization, energy market, competition.

Size Does (Not) Matter! The Efficiency of Risk Management Due to Operational Size in Wind Energy Activities

Wind energy companies must implement risk management strategies in order to successfully integrate into a liberalized energy market. This study analyses the influence of operational size (number of wind turbines in the portfolio) on the effectiveness of power purchase agreements as instrument to reduce market risk. The analysis uses wind data from 14 wind farms and data from the German Energy Exchange EEX. The results of this research reveal that the effectiveness of power purchase agreements increases with operational size. The main driver of the effectiveness, however, remains an optimal spatial diversification of wind farm locations. Overall, this study shows that smaller wind energy companies should manage their risk by spatially diversifying their wind energy investments, while larger wind energy companies should consider power purchase agreements in order to reduce the riskiness of their revenue stream.

Ukrainian Market of Electrical Energy: Reforming, Financing, Innovative Investment, Efficiency Analysis, and Audit

The aim of this research is to determine the influence of electrical energy market regulation reform in Ukraine on the competitive environment, the reproduction processes of financial and innovative support, and the energy efficiency of the national economy. The authors have put forward and verified the hypothesis that, under conditions of institutional maturity of the Ukrainian electrical energy market, its liberalization and separation of the kinds of activity related to generation, transmission, and distribution leads to a decrease in prices, and the level of economic concentration stimulates implementation of innovations and the formation of reports on sustainable development. Over the thirteen-year time interval, a steady trend of decreasing energy intensity of the Ukrainian economy was established, and the appropriateness of energy efficiency management based on strategic targets was substantiated. The electricity market model in Ukraine is defined as a hybrid one, with an emphasis on trade under bilateral agreements. It was statistically found that liberalization of the electrical energy market in Ukraine contributed to a decrease in prices, with the exception of the areas of largest household and non-household consumers. The high level of asset concentration in the accounts of large enterprises was revealed, and the conclusion concerning the improvement of the competitive environment in the electricity production sector and the existence of the features of natural monopolies in the areas of transmission and distribution of electricity was made. The assessment of the financial competitive ability and profitability of electrical energy market entities was made, the main entities of the investment activity and the sources of their financing were characterized, and innovations were emphasized. The role of the standards of the audit of integrated reporting of the Ukrainian energy holdings and their role in ensuring sustainable development was determined.

A Review: The Energy Poverty Issue in the European Union and Latvia

Abstract Energy poverty is a growing concern in the European Union. Following energy market liberalization, the problem of energy affordability has entered the political discussion, making it necessary to estimate its dimensions, develop and implement a policy and means for its mitigation. To evaluate the situation in Latvia, the paper reviews the way energy poverty is currently defined and measured, investigating the advantages and shortcomings of various definitions and approaches. It then provides a brief analysis of energy poverty in three char-acterising dimensions: low income, high costs of energy services and unsatisfactory housing conditions (primarily related to energy efficiency aspects), using available statistical data. The characterising indicators of energy poverty are compared with the EU average values. Finally, this paper highlights individual policy measures for diminishing energy poverty.

Solar power promotion plans, energy market liberalization, and farmland prices – Empirical evidence from Taiwan

Since solar panels are typically built on the roofs of residential housing or large factories, most of the existing studies focus on the relationship between solar panels and residential housing prices. Research on the effects of solar panel policies and farmland prices is rare. This paper provides the first empirical evaluation of solar power promotion plans on farmland prices before and after the liberalization of the energy market using the unique case of Taiwan. Using administrative data on farmland market transactions, we estimate the difference-in-differences model to identify the causal effect of solar power promotion plans on farmland prices. The solar power promotion plan lowers farmland prices by 15.8% and 36.6% before and after the liberalization of the energy market. Moreover, these effects vary based on farmland quality. The negative effect of the solar power promotion plan on farmland prices is more pronounced for low-quality farmland during the post-energy market liberalization period.

ENERGY MARKET LIBERALISATION IN GREECE: STRUCTURES, POLICY AND PROSPECTS

The ongoing regulatory transformation towards a single European electricity market started several years ago. The rationale of this transformation is that the liberalisation of monopolistic energy structures should lead to the building of sustainable and flexible energy ecosystems, through an energy policy that sets goals in line with the requirements of our epoch, such as sustainable development, energy security, and the promotion of renewable energy sources. In this context, the liberalisation of the electricity market in Greece is explored, which is a complicated case in terms of development as it has only recently begun to exit from a long-term socio-economic crisis and strict adjustment programs. The concepts of energy market liberalisation, energy ecosystems, and energy policy are presented and compared to the main directions of the EU institutional environment and the evolution of the political and institutional framework of Greece. In Greece, an attempt has been made in recent years to liberalise the electricity market, which is hindered for a long time by socio-economic forces favoured by the monopolistic system of the market. This liberalisation process is also an opportunity for the country to move towards enhancing the structures that can lead to faster and more sustainable development and to maintain the pace of “coupling” with the most developed energy economies of Europe.Keywords: Energy market liberalisation, Electricity market liberalisation, Energy business ecosystem, Energy policy, EU energy packages, Greek energy system JEL Classifications: Q40, Q43, Q49 DOI: https://doi.org/10.32479/ijeep.10804

Monthly Electricity Demand Patterns and Their Relationship With the Economic Sector and Geographic Location

In a highly competitive and liberalized energy market, where the retail of electricity is open to many potential companies, it is essential to have tools that help make decisions and guide the design of marketing strategies. In this sense, it is essential for retailers to know the behavior of their customers to correctly define their commercial strategies. One of the most commonly used methods for this is the characterization of their consumption profiles. Fortunately, for regulatory reasons, in some countries, the monthly electricity demand of each customer is openly available to any competitor. This paper explores whether this information, especially the economic sector and geographic location of a client, is useful for determining the client’s demand profile. Specifically, data on electricity demand in Spain from more than 27 million users and for a period of 3 years are analyzed. For this purpose, the electricity consumption of every client is grouped by month and normalized. The resulting demand profiles are later clustered according to different criteria. The main finding of the research is that the combined information on economic activity and location definitely enables prediction of the demand profile. Additionally, profile quality metrics are defined and obtained for the entire dataset. The resulting profiles have a mean dispersion of 10% and a confidence interval of ±17%. To clarify the use of these metrics, several examples are detailed, showing how this profile information can be used to improve the marketing decision-making process for electricity retailers.