Wednesday, November 23, 2005

Does a liberalised market produce clean electricity?

In this discussion paper by CE Delft, the current and expect impact of liberalising the electricity market is described, based on input from an expert group. The themes are clean electricity, reliability of the system and its cost. The paper concludes:
  • Environmental performance: the current impact of liberalisation is negative, and expect to remain negative on the longer run
  • Reliability: the current impact is neutral, but in the long run, it is expected to be negative
  • Cost: the current impact is a slight positive, but expected to turn negative in the longer run
The paper continued with a suggestion of a number of policy options to ensure a clean and reliable electricity suply for the future:
  • For a clean electricity system:
    • Minimum quota for renewable electricity for both producers and suppliers
    • Energy efficiency obligations for suppliers
    • Promotion of combined heat & power
    • Agreements for the construction of energy-efficient power plants
    • Reduce emission allowances (NOx, SO2, CO2)
    • Efficient electrical appliances
  • For a reliable electricity system:
    • Minimum reliability standards
    • Obligations for reserve capacity
    • Organise a market for network capacity
    • Promotion of combined heat & power
    • Insurance against blackout
View report (in Dutch, I'm afraid)

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