• Energy Research
• 7. Clean energy close
• 11. Sustainability close
• Energy Policy close

Abstract Socio-technical transformations towards low-carbon energy systems are on the way in developed countries. Conversely, developing countries tend to be locked in fossil fuels and foster coal-based energy structures, emphasizing reliable and cost-effective energy provision and sidelining environmental concerns. In this study, we identified and analysed the predominant factors related to coal-based power generation in Bangladesh. We applied a mixed-method approach, initially conducting a systematic literature review and, subsequently, semi-structured expert interviews to identify and validate relevant factors. We then assessed their relative importance using an Analytical Hierarchy Process based on expert judgments. The results of this assessment reveal that socio-economic aspects and environmental issues scored highest, while technological aspects and sector regulations were considered to be less relevant for large-scale coal power implementation. We conclude that future energy policies created in Bangladesh will need to use appropriate legal instruments and address issues such as human displacement and resettlement, low levels of public acceptance, health hazards and environmental pollution. Participative policy frameworks should be deployed in coal plant projects, and active monitoring systems are necessary to reduce the negative consequences associated with increased electrification and energy consumption. To address foreseeable structural challenges, it furthermore will be crucial to explore sustainable alternatives.

Abstract Using an econometric energy demand model, this paper separates price from non-price conservation effects in the period 1974–1977 and examines what might have happened to Canadian energy demands if Canada had priced its energy at OPEC equivalent levels instead of pursuing a gradual ‘phase-in’ policy. Prices accounted for the major proportion of energy savings over the period 1974–1977, particularly in the industrial and transport sectors, and for oil and gas. Non-price effects seem to have had a larger impact in the earlier years and for oil and electricity. Movement to international prices during the period studied could have reduced Canadian secondary energy demands by the oil equivalent output of 1.3 Syncrude-sized (125 000 bbl/day) oilsands plants.

Abstract This paper analyzes the impact of government procurement of reserve electricity generation capacity on the long-run equilibrium in the electricity market. The approach here is to model the electricity market in a context where the supply companies have market power. The model is then used to analyze the impact of government direct supply of peak capacity on the market. We find that the firms build less peak-generation capacity when the government procures peak generating capacity. The long-run equilibrium with N firms and government capacity of K G results in an increase of total peak generation capacity of K G /( N +1) compared to the long-run equilibrium with no government capacity. Supply disruptions of baseline capacity during the peak time period are also considered. It is found that peak prices do not go up any further with (anticipated) supply disruptions. Instead the entire cost of the extra peakers is borne by customers on traditional meters and off-peak customers who face real-time pricing.

Abstract A forecast of transport activity, energy consumption and carbon dioxide emissions from transportation, carried out under ‘business as usual’ economic assumptions, is presented for the 10 countries of Central and Eastern Europe that have acquired the status of ‘accession countries’ to the European Union. Energy demand is projected under considerations of the dynamic evolution of transport modes and their use, the evolution of automotive fuel prices, which are assumed to gradually converge with Western European price levels within the current decade, and assumptions on efficiency improvements in all transport modes according to current technological trends and European regulations. The results, showing transportation energy demand to double and CO2 emissions to be 70% higher in 2030 compared to 2000, are compared with other published forecasts and discussed with a view to potential future energy and environmental impacts in these countries, outlining major policy implications.

Abstract In South Africa, the electricity mismatch of supply and demand has been of major concern. Additional to past problems, the 2008 electricity crisis made the solution crucial after its damaging consequences to the economy. The disagreement on the need and consequences of the continuous electricity price hikes worsens the situation. To contribute to the recent electricity debate, this paper proposes a time-varying price elasticity of demand for electricity; the sensitivity of electricity consumption to price fluctuations changes throughout the years. The main purpose of this study is the estimation of the price elasticity of electricity in South Africa during the period 1980–2005 by employing an advanced econometric technique, the Kalman filter. Apart from the decreasing effect of electricity prices to consumption (−71.8% in the 1990s and −94.5% in the 2000s in average), our results conclude to an important finding: the higher the prices (for example in the 1980s) the higher the sensitivity of consumers to price fluctuations. Thus, further increases of the electricity prices may lead to changes in the behaviour of electricity consumers, focusing their efforts on improving their efficiency levels by introducing demand-side management techniques or even turning to other sources of – cheaper – energy.

Abstract This paper describes a computer simulation model constructed in the summer of 2000. It was used to simulate the general patterns of power plant construction that might appear in an electric system with approximately the same loads, resources and markets as those in California. The paper begins with background on restructuring in California and a review of previous research on construction. The paper then describes the computer model by presenting several simulations with qualitatively different patterns of construction. The simulations reveal that construction could appear in a steady, even fashion, causing power plants to come on line exactly in time to meet the profitability goals of investors. But this is not the dominant pattern. The more likely pattern shows construction lagging behind the growth in demand, allowing prices to climb to surprisingly high values during peak periods in the summer. When new power plants are completed, they come on line in great numbers causing a bust in wholesale prices. The boom/bust pattern of construction is common in industries such as commodities and real estate, and there are good reasons to believe that a boom could appear in the electric industry. Electricity consumers would certainly benefit from a boom in construction. Unfortunately, waiting for the boom is a difficult challenge with the current mix of state and federal rules in California. The paper concludes with a summary of recent events that have led to the demise of the California approach to deregulation and to the state's entry into the power business.

In the UK electricity market, generators are obliged to produce part of their electricity with renewable energy resources in accordance with the Renewable Obligation Order. Since 2009 technology banding has been added, meaning that different technologies are rewarded with a different number of certificates. We analyze these two different renewable obligation policies in a mathematical representation of an electricity market with random availabilities of renewable generation outputs and random electricity demand. We also present another, alternative, banding policy. We provide revenue adequate pricing schemes for the three obligation policies. We carry out a simulation study via sampling. A key finding is that the UK banding policy cannot guarantee that the original obligation target is met, hence potentially resulting in more pollution. Our alternative provides a way to make sure that the target is met while supporting less established technologies, but it comes with a significantly higher consumer price. Furthermore, as an undesirable side effect, we observe that a cost reduction in a technology with a high banding (namely offshore wind) leads to more CO2 emissions under the UK banding policy and to higher consumer prices under the alternative banding policy.

Abstract This paper contributes to the existing literature as well as policy debates by examining energy intensity and its determinants in China's regional economies. The analysis is based on a comprehensive database of China's regional energy balance constructed for this project. Through its focus on regional China, this study extends the existing literature, which mainly covers nationwide studies. It is found in this paper that energy intensity declined substantially in China. The main contributing factor is the improvement in energy efficiency. Changes in the economic structure have so far affected energy intensity modestly. Thus there is considerable scope to reduce energy intensity through the structural transformation of the Chinese economy in the future.