20-08-2024 - Kevin Favre, Fabien Roques, Vincent Rious
The electricity market design reform presented in Europe reinforces the role of longterm contracts to ensure revenue stability for private investors and hedge consumers from high electricity prices. Contracts for Differences (CfDs) are long-term contracts signed between a private entity and a public entity on behalf of consumers. CfDs have been historically used to deploy renewables in the power system, but they
have shown limitations in terms of incentives. To promote market-based incentives, academics and industry experts have proposed adapted CfD designs based on the disconnection between contractual and generation volumes. In this regard, the paper examines how the volume adjustments to classical CfDs modify incentives and affect the trade-off between incentives and risks for investors. The analysis is
realized with a realistic power system modelling of 2030. The paper shows that the split between effective and contractual volume restores market-based incentives in the short and medium term. Furthermore, it shows that incentives come at the cost of a higher exposure to short-term price signals at the expense of a potential higher volatility in revenues. It means that risks are allocated differently between parties. Modelling results highlight a clear trade-off between incentives and risk, depending on the contract investigated and the considered technology. The analysis shows that incentives can be returned in the contract design without significantly increasing producer risks within the limits of the paper. Consequently, depending on the parties’
RISKS AND INCENTIVES TRADE-OFF IN CONTRACTS FOR DIFFERENCE DESIGN IN EU POWER MARKETS
20-08-2024 by Kevin Favre, Fabien Roques, Vincent Rious
>> Read...
THE RETURN OF LONG-TERM CONTRACTS IN ELECTRICITY MARKETS: IMPLICATIONS FOR COMPETITION POLICY
17-06-2024 by Fabien Roques & Guillaume Duquesne
>> Read...
THE COMPETITIVE EFFECTS OF LINKING ELECTRICITY MARKETS ACROSS SPACE
17-06-2024 by D Thomas P. Tangerås and Frank A. Wolak
>> Read...
Le futur «règlement» sur le marché européen de l’électricité, un grand pas dans la bonne direction
27-05-2024 by Dominique Finon
>> Read...
[POLICY PAPER N°1] The Long Term Central Buyer model. A solution to strengthen low carbon transition and to protect consumers while keeping efficient spot markets
13-12-2022 by Dominique FINON and Etienne BEEKER
>> Read...
THE SOCIAL EFFICIENCY OF ELECTRICITY TRANSITION POLICIES BASED ON RENEWABLES. WHICH WAYS OF IMPROVEMENT?
02-11-2022 by by Manuel Villavicencio and Dominique Finon
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RELIABILITY STANDARDS AND GENERATION ADEQUACY ASSESSMENTS FOR INTERCONNECTED ELECTRICITY SYSTEMS
22-07-2022 by par Nicolas ASTIER et Marten OVAERE
>> Read...
RATE DESIGN WITH DISTRIBUTED ENERGY RESOURCES AND ELECTRIC VEHICLES: A CALIFORNIAN CASE STUDY
18-10-2021 by Icaro Silvestre FREITAS GOMES, Yannick PEREZ and Emilia SUOMALAINEN
>> Read...
LOCAL FLEXIBILITY MARKETS FOR DISTRIBUTION NETWORK CONGESTION-MANAGEMENT IN CENTER-WESTERN EUROPE: WHICH DESIGN FOR WHICH NEEDS?
20-09-2021 by by Theo DRONNE, Fabien ROQUES and Marcelo SAGUAN
>> Read...
DYNAMIC PRICING EFFICIENCY WITH STRATEGIC RETAILERS AND CONSUMERS: AN ANALYTICAL ANALYSIS OF SHORT-TERM MARKET INTERACTIONS
20-09-2021 by by Cédric CLASTRES and Haikel KHALFALLAH
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SYSTEM CONTRIBUTIONS OF RESIDENTIAL BATTERY SYSTEMS: NEW PERSPECTIVES ON PV SELF-CONSUMPTION
17-02-2021 by Hyun Jin Julie Yu
>> Read...
CAPACITY ADEQUACY IN POWER MARKETS FACING ENERGY TRANSITION : A COMPARISON OF SCARCITY PRICING AND CAPACITY MECHANISM
30-01-2020 by Marie PETITET, Dominique FINON and Tanguy JANSSEN
>> Read...
ADAPTING ELECTRICITY MARKETS TO DECARBONISATION AND SECURITY OF SUPPLY OBJECTIVES : TOWARD A HYBRID REGIME ?
30-01-2020 by Fabien ROQUES and Dominique FINON
>> Read...
A PROSPECTIVE ECONOMIC ASSESSMENT OF RESIDENTIAL PV SELF-CONSUMPTION WITH BATTERIES AND ITS SYSTEMIC EFFECTS : THE FRENCH CASE IN 2030
30-01-2020 by Hyun Jin Julie YU
>> Read...
THE VALUE OF FLEXIBILITY IN POWER MARKETS
30-01-2020 by Stéphane GOUTTE and Philippe VASSILOPOULOS
>> Read...
DETERMINING OPTIMAL INTERCONNECTION CAPACITY ON THE BASIS OF HOURLY DEMAND AND SUPPLY FUNCTIONS OF ELECTRICITY
30-01-2020 by Jan Horst KEPPLER and William MEUNIER
>> Read...
MARKET INTEGRATION AND WIND GENERATION : AN EMPIRICAL ANALYSIS OF THE IMPACT OF WIND GENERATION ON POWER PRICES CROSS-BORDER
30-01-2020 by Sébastien PHAN and Fabien ROQUES
>> Read...
IMPACT OF GATE CLOSURE TIME ON THE EFFICIENCY OF POWER SYSTEMS BALANCING
01-04-2019 by PETITET et al.
>> Read...
LA VALEUR ÉCONOMIQUE DU STOCKAGE DE L'ELECTRICITÉ
19-07-2018 by Manuel VILLAVICENCIO
>> Read...
HOW RENEWABLE PRODUCTION DEPRESSES ELECTRICITY PRICES: EVIDENCE FROM THE GERMAN MARKET
14-05-2018 by Cyril MARTIN de LAGARDE et Frédéric LANTZ
>> Read...
ASSESSING CROSS-BORDER INTEGRATION OF CAPACITY MECHANISMS IN COUPLED ELECTRICITY MARKETS
25-04-2018 by Mauricio CEPEDA
>> Read...
A PROSPECTIVE ECONOMIC ASSESSMENT OF RESIDENTIAL PV SELF-CONSUMPTION WITH BATTERIES AND ITS SYSTEMIC EFFECTS: THE FRENCH CASE IN 2030
09-01-2018 by Hyun Jin Julie YU
>> Read...
TALES OF TWO ISLANDS – LESSONS FOR EU ENERGY POLICY FROM ELECTRICITY MARKET REFORMS IN BRITAIN AND IRELAND
25-04-2017 by David NEWBERY
>> Read...
INVESTMENT WITH INCOMPLETE MARKETS FOR RISK: THE NEED FOR LONG-TERM CONTRACTS
25-04-2017 by Andreas EHRENMANN et al.
>> Read...
PRICE COMPUTATION IN ELECTRICITY AUCTIONS WITH COMPLEX RULES: AN ANALYSIS OF INVESTMENT SIGNALS
25-04-2017 by Miguel VASQUEZ et al.
>> Read...
RATIONALES FOR CAPACITY REMUNERATION MECHANISMS: SECURITY OF SUPPLY EXTERNALITIES AND ASYMMETRIC INVESTMENT INCENTIVES
19-04-2017 by Jan Horst KEPPLER
>> Read...
THE ROLE OF CONTINUOUS INTRADAY ELECTRICITY MARKETS: THE INTEGRATION OF LARGE-SHARE WIND POWER GENERATION IN DENMARK
11-04-2017 by Fatih KARANFIL and Yuanjing LI
>> Read...
SPECIAL SECTION: TOWARDS HYBRID MARKET REGIMES IN THE POWER SECTOR
10-04-2017 by Dominique FINON, Jan Horst KEPPLER and Fabien ROQUES
>> Read...
ADAPTING ELECTRICITY MARKETS TO DECARBONISATION AND SECURITY OF SUPPLY OBJECTIVES: TOWARD A HYBRID REGIME?
10-04-2017 by Fabien ROQUES and Dominique FINON
>> Read...
STOPPER LA DÉROUTE DES ÉLECTRICIENS EUROPÉENS : POUR UNE RÉFORME DU MARCHÉ DES QUOTAS DE CO2
20-02-2017 by Jan Horst KEPPLER
>> Read...
CARBON PRICE INSTEAD OF SUPPORT SCHEMES: WIND POWER INVESTMENTS BY THE ELECTRICITY MARKET
10-03-2016 by Marie PETITET, Dominique FINON and Tanguy JANSSEN
>> Read...
THE IMPACTS OF VARIABLE RENEWABLE PRODUCTION AND MARKET COUPLING ON THE CONVERGENCE OF FRENCH AND GERMAN ELECTRICITY PRICES
10-03-2016 by Jan Horst KEPPLER, Sébastien PHAN and Yannick LE PEN
>> Read...
AN ANALYTICAL APPROACH TO ACTIVATING DEMAND ELASTICITY WITH A DEMAND RESPONSE MECHANISM
10-03-2016 by Cédric CLASTRES and Haikel KHALFALLAH
>> Read...
LE BESOIN DE MARCHÉS DE LA FLEXIBILITÉ : L’ADAPTATION DU DESIGN DES MARCHÉS ÉLECTRIQUES AUX PRODUCTIONS D’ÉNERGIES RENOUVELABLES
04-12-2015 by Dominique FINON
>> Read...
ASSESSING LONG-TERM EFFECTS OF DEMAND RESPONSE POLICIES IN WHOLESALE ELECTRICITY MARKETS
04-12-2015 by Mauricio CEPEDA and Marcelo SAGUAN
>> Read...
HEDGING STRATEGIES IN ENERGY MARKETS: THE CASE OF ELECTRICITY RETAILERS
04-12-2015 by Raphaël Homayoun BOROUMAND, Stéphane GOUTTE, Simon PORCHER and Thomas PORCHER
>> Read...
RISKS AND INCENTIVES TRADE-OFF IN CONTRACTS FOR DIFFERENCE DESIGN IN EU POWER MARKETS
par Kevin Favre, Fabien Roques, Vincent Rious
le 20-08-2024
THE RETURN OF LONG-TERM CONTRACTS IN ELECTRICITY MARKETS: IMPLICATIONS FOR COMPETITION POLICY
par Fabien Roques & Guillaume Duquesne
le 17-06-2024
THE COMPETITIVE EFFECTS OF LINKING ELECTRICITY MARKETS ACROSS SPACE
par D Thomas P. Tangerås and Frank A. Wolak
le 17-06-2024
Le futur «règlement» sur le marché européen de l’électricité, un grand pas dans la bonne direction
par Dominique Finon
le 27-05-2024
[POLICY PAPER N°1] The Long Term Central Buyer model. A solution to strengthen low carbon transition and to protect consumers while keeping efficient spot markets
par Dominique FINON and Etienne BEEKER
le 13-12-2022
THE SOCIAL EFFICIENCY OF ELECTRICITY TRANSITION POLICIES BASED ON RENEWABLES. WHICH WAYS OF IMPROVEMENT?
par by Manuel Villavicencio and Dominique Finon
le 02-11-2022
RELIABILITY STANDARDS AND GENERATION ADEQUACY ASSESSMENTS FOR INTERCONNECTED ELECTRICITY SYSTEMS
par par Nicolas ASTIER et Marten OVAERE
le 22-07-2022
RATE DESIGN WITH DISTRIBUTED ENERGY RESOURCES AND ELECTRIC VEHICLES: A CALIFORNIAN CASE STUDY
par Icaro Silvestre FREITAS GOMES, Yannick PEREZ and Emilia SUOMALAINEN
le 18-10-2021
LOCAL FLEXIBILITY MARKETS FOR DISTRIBUTION NETWORK CONGESTION-MANAGEMENT IN CENTER-WESTERN EUROPE: WHICH DESIGN FOR WHICH NEEDS?
par by Theo DRONNE, Fabien ROQUES and Marcelo SAGUAN
le 20-09-2021
DYNAMIC PRICING EFFICIENCY WITH STRATEGIC RETAILERS AND CONSUMERS: AN ANALYTICAL ANALYSIS OF SHORT-TERM MARKET INTERACTIONS
par by Cédric CLASTRES and Haikel KHALFALLAH
le 20-09-2021
SYSTEM CONTRIBUTIONS OF RESIDENTIAL BATTERY SYSTEMS: NEW PERSPECTIVES ON PV SELF-CONSUMPTION
par Hyun Jin Julie Yu
le 17-02-2021
CAPACITY ADEQUACY IN POWER MARKETS FACING ENERGY TRANSITION : A COMPARISON OF SCARCITY PRICING AND CAPACITY MECHANISM
par Marie PETITET, Dominique FINON and Tanguy JANSSEN
le 30-01-2020
ADAPTING ELECTRICITY MARKETS TO DECARBONISATION AND SECURITY OF SUPPLY OBJECTIVES : TOWARD A HYBRID REGIME ?
par Fabien ROQUES and Dominique FINON
le 30-01-2020
A PROSPECTIVE ECONOMIC ASSESSMENT OF RESIDENTIAL PV SELF-CONSUMPTION WITH BATTERIES AND ITS SYSTEMIC EFFECTS : THE FRENCH CASE IN 2030
par Hyun Jin Julie YU
le 30-01-2020
THE VALUE OF FLEXIBILITY IN POWER MARKETS
par Stéphane GOUTTE and Philippe VASSILOPOULOS
le 30-01-2020
DETERMINING OPTIMAL INTERCONNECTION CAPACITY ON THE BASIS OF HOURLY DEMAND AND SUPPLY FUNCTIONS OF ELECTRICITY
par Jan Horst KEPPLER and William MEUNIER
le 30-01-2020
MARKET INTEGRATION AND WIND GENERATION : AN EMPIRICAL ANALYSIS OF THE IMPACT OF WIND GENERATION ON POWER PRICES CROSS-BORDER
par Sébastien PHAN and Fabien ROQUES
le 30-01-2020
IMPACT OF GATE CLOSURE TIME ON THE EFFICIENCY OF POWER SYSTEMS BALANCING
par PETITET et al.
le 01-04-2019
LA VALEUR ÉCONOMIQUE DU STOCKAGE DE L'ELECTRICITÉ
par Manuel VILLAVICENCIO
le 19-07-2018
HOW RENEWABLE PRODUCTION DEPRESSES ELECTRICITY PRICES: EVIDENCE FROM THE GERMAN MARKET
par Cyril MARTIN de LAGARDE et Frédéric LANTZ
le 14-05-2018
ASSESSING CROSS-BORDER INTEGRATION OF CAPACITY MECHANISMS IN COUPLED ELECTRICITY MARKETS
par Mauricio CEPEDA
le 25-04-2018
A PROSPECTIVE ECONOMIC ASSESSMENT OF RESIDENTIAL PV SELF-CONSUMPTION WITH BATTERIES AND ITS SYSTEMIC EFFECTS: THE FRENCH CASE IN 2030
par Hyun Jin Julie YU
le 09-01-2018
TALES OF TWO ISLANDS – LESSONS FOR EU ENERGY POLICY FROM ELECTRICITY MARKET REFORMS IN BRITAIN AND IRELAND
par David NEWBERY
le 25-04-2017
INVESTMENT WITH INCOMPLETE MARKETS FOR RISK: THE NEED FOR LONG-TERM CONTRACTS
par Andreas EHRENMANN et al.
le 25-04-2017
PRICE COMPUTATION IN ELECTRICITY AUCTIONS WITH COMPLEX RULES: AN ANALYSIS OF INVESTMENT SIGNALS
par Miguel VASQUEZ et al.
le 25-04-2017
RATIONALES FOR CAPACITY REMUNERATION MECHANISMS: SECURITY OF SUPPLY EXTERNALITIES AND ASYMMETRIC INVESTMENT INCENTIVES
par Jan Horst KEPPLER
le 19-04-2017
THE ROLE OF CONTINUOUS INTRADAY ELECTRICITY MARKETS: THE INTEGRATION OF LARGE-SHARE WIND POWER GENERATION IN DENMARK
par Fatih KARANFIL and Yuanjing LI
le 11-04-2017
SPECIAL SECTION: TOWARDS HYBRID MARKET REGIMES IN THE POWER SECTOR
par Dominique FINON, Jan Horst KEPPLER and Fabien ROQUES
le 10-04-2017
ADAPTING ELECTRICITY MARKETS TO DECARBONISATION AND SECURITY OF SUPPLY OBJECTIVES: TOWARD A HYBRID REGIME?
par Fabien ROQUES and Dominique FINON
le 10-04-2017
STOPPER LA DÉROUTE DES ÉLECTRICIENS EUROPÉENS : POUR UNE RÉFORME DU MARCHÉ DES QUOTAS DE CO2
par Jan Horst KEPPLER
le 20-02-2017
CARBON PRICE INSTEAD OF SUPPORT SCHEMES: WIND POWER INVESTMENTS BY THE ELECTRICITY MARKET
par Marie PETITET, Dominique FINON and Tanguy JANSSEN
le 10-03-2016
THE IMPACTS OF VARIABLE RENEWABLE PRODUCTION AND MARKET COUPLING ON THE CONVERGENCE OF FRENCH AND GERMAN ELECTRICITY PRICES
par Jan Horst KEPPLER, Sébastien PHAN and Yannick LE PEN
le 10-03-2016
AN ANALYTICAL APPROACH TO ACTIVATING DEMAND ELASTICITY WITH A DEMAND RESPONSE MECHANISM
par Cédric CLASTRES and Haikel KHALFALLAH
le 10-03-2016
LE BESOIN DE MARCHÉS DE LA FLEXIBILITÉ : L’ADAPTATION DU DESIGN DES MARCHÉS ÉLECTRIQUES AUX PRODUCTIONS D’ÉNERGIES RENOUVELABLES
par Dominique FINON
le 04-12-2015
ASSESSING LONG-TERM EFFECTS OF DEMAND RESPONSE POLICIES IN WHOLESALE ELECTRICITY MARKETS
par Mauricio CEPEDA and Marcelo SAGUAN
le 04-12-2015
HEDGING STRATEGIES IN ENERGY MARKETS: THE CASE OF ELECTRICITY RETAILERS
par Raphaël Homayoun BOROUMAND, Stéphane GOUTTE, Simon PORCHER and Thomas PORCHER
le 04-12-2015
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