A new seminar series on energy economics was launched on 14 February 2008 in The Hague. TILEC created this discussion platform for Dutch energy economists together with the Dutch national competition authority (Nma), the Dutch Ministry for Economic Affairs, and the Netherlands Bureau for Economic Policy Analysis (CPB) in order to bridge the gap between policy-makers and academics. The first meeting focused on the large-scale introduction of wind energy in a future low carbon-intensive economy and featured Karsten Neuhoff (Cambridge University) and Xander van Tilburg (Energy Research Center of the Netherlands). Karsten Neuhoff explained that, due to the stochastic nature of wind output, future electricity prices will be more volatile. As a result, the future energy system will rely less on large-scale base-load power plants and more on flexible peak-load power plants. If incumbent generators have market power, the price volatility will increase even further, with insufficient investments in wind energy as a result. This will force the competition authorities to think again about the alternative strategies to address market power in the electricity sector. The speakers' presentations can be found on TILEC's website. To receive an invitation for future seminars in the series, please send your contact information to the TILEC secretariat.
Feb 28, 2008
Will Dutch windmills bring stormy weather to electricity markets?
A new seminar series on energy economics was launched on 14 February 2008 in The Hague. TILEC created this discussion platform for Dutch energy economists together with the Dutch national competition authority (Nma), the Dutch Ministry for Economic Affairs, and the Netherlands Bureau for Economic Policy Analysis (CPB) in order to bridge the gap between policy-makers and academics. The first meeting focused on the large-scale introduction of wind energy in a future low carbon-intensive economy and featured Karsten Neuhoff (Cambridge University) and Xander van Tilburg (Energy Research Center of the Netherlands). Karsten Neuhoff explained that, due to the stochastic nature of wind output, future electricity prices will be more volatile. As a result, the future energy system will rely less on large-scale base-load power plants and more on flexible peak-load power plants. If incumbent generators have market power, the price volatility will increase even further, with insufficient investments in wind energy as a result. This will force the competition authorities to think again about the alternative strategies to address market power in the electricity sector. The speakers' presentations can be found on TILEC's website. To receive an invitation for future seminars in the series, please send your contact information to the TILEC secretariat.
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