Arbitrage in energy markets: Competing in the incumbent's shadow.

This paper studies the welfare implications of using market mechanisms to allocate transmission capacity in recently liberalized electricity markets. It questions whether access to this essential facility should be traded on a market, or whether the incumbent should retain exclusive usage rights. We show that granting exclusive use to the incumbent might be optimal, if the capacity of the essential facility is small and the incumbent can reduce production costs by taking advantage of interregional production-cost differences. This result counters the intuition that arbitrage will improve the social surplus when there is no output contraction. The reason is that when competition is imperfect, arbitrage might reduce production efficiency. We advise policymakers to introduce market mechanisms for the allocation of transmission capacity only if sufficient investment in the network is ensured or if the market power of the incumbent is broken in at least one of the markets in which it is active.Competition; Efficiency; Market; Markets; Functions; Data; Arbitrage;

Arbitrage in energy markets: competing in the incumbent's shadow

This paper studies the welfare implications of using market mechanisms to allocate transmission capacity in recently liberalized electricity markets. It questions whether access to this essential facility should be traded on a market, or whether the incumbent should retain exclusive usage rights. We show that granting exclusive use to the incumbent might be optimal, if the capacity of the essential facility is small and the incumbent can reduce production costs by taking advantage of interregional production-cost differences. This result counters the intuition that arbitrage will improve the social surplus when there is no output contraction. The reason is that when competition is imperfect, arbitrage might reduce production efficiency. We advise policymakers to introduce market mechanisms for the allocation of transmission capacity only if sufficient investment in the network is ensured or if the market power of the incumbent is broken in at least one of the markets in which it is active.Arbitrage, electricity sector, price discrimination

How to increase cross border transmission capacity? A case study: Belgium.

Cross border capacity allows electric energy to be traded internationally. The electricity sector used to be vertically integrated and often state-owned. High voltage grids were generally developed within the borders of a country. Connecting different national high voltage grids was done to improve the security of the system and to accomodate for a few historical long term contracts. By doing so, the different systems could share their reserve generation capacity. Since the liberalization of the electricity sector, cross border capacity has gained a renewed interest as this can increase the competition in the market. This paper aims to give an overview of recent and planned investments which increase the cross border capacity of Belgium. Also we give an insight into the different technologies which can be used and their advantages and drawbacks are discussed.

Synchrotron X-rays reveal the modes of Fe binding and trace metal storage in the brown algae Laminaria digitata and Ectocarpus siliculosus

Funding Funding from the UK Natural Environment Research Council (NERC) through grants NE/D521522/1, NE/F012705/1, and Oceans 2025 (WP4.5) programs to FCK; the National Science Foundation (CHE-1664657) and the National Oceanic & Atmospheric Administration to CJC and FCK; and the MASTS pooling initiative (Marine Alliance for Science and Technology for Scotland, funded by the Scottish Funding Council and contributing institutions; grant reference HR09011) is gratefully acknowledged by FCK. PK would like to thank the European Commission for her postdoctoral fellowship (EC-Horizon 2020-MSCA-IF, grant no. 839151). AM and HK thank the Ministry of Education, Youth and Sports of the Czech Republic with co-financing from the European Union (grant "KOROLID", CZ.02.1.01/0.0/0.0/15_003/0000336) and the Czech Academy of Sciences (RVO: 60077344). AM, FK and HK are grateful for support from the European Community in the framework of the Access to Research Infrastructure Action of the Improving Human Potential Program to the ESRF (experiment LS-2772, beamline ID16AI). AM and HK thank Czech Government funding (Členství v European Synchrotron Radiation Facility, MŠMT – 33914/2017-1) supporting their work at the ESRF. GeoSoilEnviroCARS is supported by the National Science Foundation – Earth Sciences (EAR – 1634415) and Department of EnergyGeoSciences (DE-FG02-94ER14466). This research used resources of the Advanced Photon Source, a U.S. Department of Energy (DOE) Office of Science User Facility operated for the DOE Office of Science by Argonne National Laboratory under Contract No. DE-AC02-06CH11357. Computational resources were supplied by the project "e-Infrastruktura CZ" (e-INFRA CZ LM2018140) supported by the Ministry of Education, Youth and Sports of the Czech Republic.Peer reviewedPublisher PD

What is the strategic value of investments in alternative local energy supply?

This paper studies strategic incentives to invest in electricity generation capacity using a local fuel like renewables or coal. It shows that investing in this capacity, even if not used, improves the bargaining position of a power producing firm that also imports another fuel such as gas. When several importers are considered, the paper finds that investment has a positive strategic effect on all other importersâ bargaining position. A government energy policy that forces utilities to invest in capacity based on particular fuels can be justified not only for environmental but also for strategic reasons.status: publishe

Arbitrage in energy markets: Competing in the incumbent's shadow

This paper studies the welfare implications of using market mechanisms to allocate transmission capacity in recently liberalized electricity markets. It questions whether access to this essential facility should be traded on a market, or whether the incumbent should retain exclusive usage rights. We show that granting exclusive use to the incumbent might be optimal, if the capacity of the essential facility is small and the incumbent can reduce production costs by taking advantage of interregional production-cost differences. This result counters the intuition that arbitrage will improve the social surplus when there is no output contraction. The reason is that when competition is imperfect, arbitrage might reduce production efficiency. We advise policymakers to introduce market mechanisms for the allocation of transmission capacity only if sufficient investment in the network is ensured or if the market power of the incumbent is broken in at least one of the markets in which it is active.status: publishe

The future electricity intraday market design

info:eu-repo/semantics/publishe

Effects of nanomolar copper on water plants — Comparison of biochemical and biophysical mechanisms of deficiency and sublethal toxicity under environmentally relevant conditions

Toxicity and deficiency of essential trace elements like Cu are major global problems. Here, environmentally relevant sub-micromolar concentrations of Cu (supplied as CuSO4) and simulations of natural light- and temperature cycles were applied to the aquatic macrophyte Ceratophyllum demersum. Growth was optimal at 10 nM Cu, while PSII activity (Fv/Fm) was maximal around 2 nM Cu. Damage to the PSII reaction centre was the first target of Cu toxicity, followed by disturbed regulation of heat dissipation (NPQ). Only after that, electron transport through PSII (ΦPSII) was inhibited, and finally chlorophylls decreased. Copper accumulation in the plants was stable until 10 nM Cu in solution, but strongly increased at higher concentrations. The vein was the main storage site for Cu up to physiological concentrations (10 nM). At toxic levels it was also sequestered to the epidermis and mesophyll until export from the vein became inhibited, accompanied by inhibition of Zn uptake. Copper deficiency led to a complete stop of growth at “0” nM Cu after 6 weeks. This was accompanied by high starch accumulation although electron flow through PSII (ΦPSII) decreased from 2 weeks, followed by decrease in pigments and increase of non photochemical quenching (NPQ). Release of Cu from the plants below 10 nM Cu supply in the nutrient solution indicated lack of high-affinity Cu transporters, and on the tissue level copper deficiency led to a re-distribution of zinc

Does more international transmission capacity increase competition in the Belgian electricity market

From a national market perspective, taking transmission capacity into account reduces current concentration measures, although they remain fairly high even after substantial capacity increases. From an international perspective, a more efficient use of current transmission capacity by coupling regional markets can increase competition. That suggests it may not be appropriate to assess market concentration using national market shares

Does more international transmission capacity increase competition in the Belgian electricity market?

From a national market perspective, taking transmission capacity into account reduces current concentration measures, although they remain fairly high even after substantial capacity increases. From an international perspective, a more efficient use of current transmission capacity by coupling regional markets can increase competition. That suggests it may not be appropriate to assess market concentration using national market shares. © 2008 Elsevier Inc. All rights reserved.status: publishe