Results 1 - 10 of 157
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[en] Expansion of offshore wind power plays a significant role in the energy policies of many EU countries. However, offshore wind farms create visual disamenities. These disamenities can be reduced by siting wind farms at larger distances from the coast - and accepting higher costs per kWh produced. In this paper willingness to pay for reducing the visual disamenities from future offshore wind farms is elicited using the economic valuation method Choice Experiments. The valuation scenario comprises the location of 720 offshore wind turbines (equivalent to 3600 MW) in farms at distances equal to: 12, 18 or 50 km from the shore, relative to an 8 km baseline. Using a fixed effect logit model average willingness to pay amounts were estimated as: 46, 96 and 122 Euros/household/year for having the wind farms located at 12, 18 and 50 km from the coast as opposed to 8 km. The results also reveal that WTP deviates significantly depending on the age of respondents and their experiences with offshore wind farms. (author)
[en] This paper studies different concentration and dominance measures using structural indexes used to initially screen the competitive situation in a market. The Nordic and Swedish electricity markets are used as the empirical cases. Market concentration issues in the Nordic electricity market in general and in Sweden in particular have been, at least in initial screenings, approached by the Herfindahl-Hirschman Index (HHI). This article uses an alternative measure to HHI, which is based on market shares of the two largest firms in the market. The results shows that only the Swedish wholesale market has a firm that can be regarded as dominant, but only during very short periods. The results from a hypothetical merger between the second and third largest company in the Swedish wholesale market shows that when the dominant position of the largest firm is reduced, by increasing the size of the second largest firm, the threshold value indicates that competition actually will increase (contradicting to the HHI).
[en] This paper explores the possibilities for reducing future energy use for eating to a sustainable level. A backcasting approach is used to generate an image of the future where energy use for eating is 60% lower in 2050 than in 2000. The currently known potential to reduce energy use in the food supply system for producing, transporting, storing, cooking and eating food is explored and described in terms of a number of distinct changes that are numbered consecutively and presented in both a quantitative and qualitative way. Sweden is used as the case and all data regarding energy use apply for Swedish conditions. An exercise like this illustrates the possible outcome of taking sustainability seriously. If sustainability is to be achieved, some images of the future are needed so that potential targets can be identified. This paper does not present forecasts, but illustrates the kind of changes needed in order to achieve sustainable energy use in the food system.
[en] In order to overcome the perverse incentives of excessive maintenance reductions and insufficient network investments arising with incentive regulation of electricity distribution companies, regulators throughout Europe have started regulating service quality. In this paper, we explore the impact of incorporating customers' willingness-to-pay for service quality in benchmarking models on cost efficiency of distribution networks. Therefore, we examine the case of Norway, which features this approach to service quality regulation. We use the data envelopment analysis technique to analyse the effectiveness of such regulatory instruments. Moreover, we discuss the extent to which this indirect regulatory instrument motivates a socially desired service quality level. The results indicate that internalising external or social cost of service quality does not seem to have played an important role in improving cost efficiency in Norwegian distribution utilities.
[en] This paper presents an analysis of the auction prices at the cross-border auction between West Denmark and Germany and between East Denmark and Germany (the Kontek cable). Monthly and annual transmission capacities appear to be more highly valued than daily transmission capacity on average. The two cross-border auctions show different trends: the auctions between West Denmark and Germany exhibit a higher level of prices in the southbound direction, and between East Denmark and Germany, higher prices in the northbound direction. We find a relatively strong correspondence in the pricing of products over different time frames (daily, monthly and annual auctions) between West Denmark and Germany and a weak correspondence for the products between East Denmark and Germany. In the daily auctions, market players can decide whether to use their capacity after the clearing of the day-ahead market, while in the monthly and annual auctions they must decide whether to use their capacity prior to clearing. If they choose not to use their capacity, the use-it-or-lose-it principle applies. The capacity is then subsequently released to the daily market. Since the daily cross-border auctions are free of commitment, they should be valued as options. Likewise, in the monthly and annual auctions market players can choose not to nominate their capacity but as this must occur before the clearing of the day-ahead market, they will not know the directions of the power flows a priori. If they nominate the capacity they must use it; if the direction turns out to be ''wrong,'' it is then possible to purchase capacity in the opposite direction in the daily auctions. If market players can accurately predict the outcome of the spot markets day ahead, the value of monthly and annual capacity should more closely reflect the value of an option. Thus, one would expect the value of the monthly and annual capacity to be between the value of an option and an obligation. Although this suggests that the average price of daily capacity should be greater than monthly and annual capacity, our data do not support this hypothesis. The daily, monthly and annual capacity auctions do not reflect the value of the underlying asset as specified by the appropriate valuation of the energy price differentials between West Denmark and Germany and East Denmark and Germany. Therefore, market players are exposed to substantial variation in fees for congestion management on the cross-border. We study whether arbitrage improves over time and discern no obvious trend. Since the explicit auction procedure has not been cost-efficient, a better approach appears to be the new market coupling arrangement introduced on the Kontek cable and on the border between West Denmark and Germany, with the result that market players will pay a congestion management fee (i.e. area price difference) equal to the energy price differential resulting from the market coupling mechanism. (author)
[en] Achieving the ambitious targets for renewable electricity generation in Europe will require harnessing a diverse range of energy sources, many of which are decentralised, small scale, and will be connected directly to the distribution networks. To control the two-way flows of electricity, the current passive network configurations will need to be replaced by active network management. This will require, in particular, innovations in intelligent IT-based network control. This paper draws on research on Large Technical Systems (LTS) and control systems in other sectors to analyse the evolution of electricity network control in western Denmark and the UK, since the Second World War. It concludes that lack of progress in network control has only recently-largely because of the combined needs to provide greater reliability and 'green' electricity within liberalised markets-emerged as a 'reverse salient' that will prevent the further development of the LTS of electricity supply industry towards desired direction. Breaking the inertia in the LTS and its control systems will require determined government action to promote learning and collaborative search for solutions. The UK might well draw lessons from the Danish pragmatism in fostering innovation through targeted support to collaborative R and D efforts towards sustainability objectives.
[en] This paper studies different concentration and dominance measures using structural indexes used to initially screen the competitive situation in a market. The Nordic and Swedish electricity markets are used as the empirical cases. Market concentration issues in the Nordic electricity market in general and in Sweden in particular have been, at least in initial screenings, approached by the Herfindahl-Hirschman Index (HHI). This article uses an alternative measure to HHI, which is based on market shares of the two largest firms in the market. The results shows that only the Swedish wholesale market has a firm that can be regarded as dominant, but only during very short periods. The results from a hypothetical merger between the second and third largest company in the Swedish wholesale market shows that when the dominant position of the largest firm is reduced, by increasing the size of the second largest firm, the threshold value indicates that competition actually will increase (contradicting to the HHI). (author)
[en] Despite the long-term and positive experience with Ecological Tax Reform (ETR), the PETRAS study indicates that awareness about the principles behind ETR is low among both businesses and the general public in Denmark. As well as the lack of awareness of ETR, attitudes towards environmental taxation appear negative. When explaining the political intentions behind ETR, attitudes seem to improve somewhat, but they still remain overall sceptical. Based on the history and the results of the PETRAS project the article will describe some of the main impediments for further development of environmental tax and ETR policies in Denmark. The article concludes that the main reason why the ETR policy has been met with such apparently low social acceptability in Denmark is that the 'green' of the 'green' tax reform has been somewhat oversold. On this basis it recommends the pursuit of a courageous government strategy of, openly and repeatedly, stressing the revenue purposes of environmentally related taxes over the environmental purposes in an effort to redirect public discussions towards relevant issues like the pros and cons of environmentally related taxation compared with other types of taxation and the connection between the overall tax burden and demands for government spending. Such a bold government 'confession' to the obvious revenue purposes of the environmentally related taxes could make them, if not popular, then at least a bit more acceptable to businesses and the general public. (author)
[en] This paper presents a preliminary assessment of the market coupling arrangement on the Kontek (KT) cable between East Denmark and Germany and an assessment of the original auction mechanism. KT, the new spot price area, was introduced in Germany on October 5, 2005 to facilitate a market coupling arrangement on the KT cable between East Denmark and Germany. We would expect the KT price to correlate more with the European Energy Exchange (EEX) price because arbitrage normally levelizes the price. However, spot prices in late 2005 were both high and volatile because congestion management practices in Sweden transferred internal bottlenecks to the cable between Sweden and East Denmark. Since spot prices were equal in East Denmark and the KT area for a substantial time, it implies that some hours had no congestion on the KT cable. Market players valued the previous monthly auctions for transmission capacity more than the daily auctions. Compared to the daily auctions, market players received smaller payoffs on average for the market coupling arrangement, and the smallest payoffs for the monthly auctions
[en] Environmental problems in the energy system often originate from everyday activities and choices. Everyday activities in the home are part of the private sphere that can be contested in relation to energy policies. This article discusses the public-private divide in energy policies and how Swedish municipal energy consultants understand the divide. By analyzing the actions of energy consultants and their efforts to influence households, as well as how households perceive this guidance, I will discuss the public-private discourse in relation to energy policy and how this discourse can be a restriction for the energy consultants to reach their full potential. The consultants found it problematic to discuss behavioral issues because they did not know how to relate to people's everyday life activities without intruding on private and personal matters. For the households tailored information and feedback was not perceived as the consultant trespassing in the private sphere. Instead, the householders highlight the possibilities of such mapping. Lessoned learned from Sweden is that state subsidies to local energy consultants is a good way to reach households, but that they need to develop their methods and use more tailored information.