The liberalisation and international integration of electricity markets have led to a dramatic increase in the complexity of the electricity sector. Rather than hierarchical control, it is the legal framework (‘rules of the game’) that determines the behaviour of actors such as power generators, traders and network operators. Because of the unusual technical and economic characteristics of electricity markets, their performance is very sensitive to the formulation of the legal framework. Still, a structured approach to formulating the legal framework has not yet been developed. This book meets this demand.
Many questions need to be answered in the design of a legal framework for the electricity industry and often they are interdependent. This study proposes a design method for the analysis and design of the legal organisation of a technically complex sector such as the electricity industry. The method takes into account the relevant policy goals, legal constraints and technical characteristics. While the method is developed for electricity markets, it can be applied to other technically complex infrastructures as well.
The proposed method is applied to several critical cases, such as the security of electricity supply, operational security in large networks, congestion management and the question how to deal with merchant transmission investment. In addition to validating the proposed method, these case studies offer a wealth of practical information about the policy choices for restructuring the electricity industry. This makes this book a rich resource for anyone interested in the design of electricity markets.
1. Electricity supply: from monopoly to complexity (p. 1)
2. Research framework (p. 23)
3. System description (p. 43)
4. Legal organisation (p. 65)
5. Public policy goals (p. 91)
6. Legal constraints (p. 111)
7. Design method (p. 163)
8. An inventory of critical technical functions (p. 209)
9. Electricity generation (p. 227)
10. Maintenance of the energy balance (p. 239)
11. Generation adequacy (p. 277)
12. Network operations (p. 311)
13. Congestion management (p. 329)
14. Transport adequacy (p. 365)
15. Merchant investment in interconnectors? (p. 391)
16. Validation of the method (p. 417)
17. Conclusion (p. 449)
18. Reflection (p. 469)
Appendix - Case study: the maintenance of the energy balance (p. 487)
Energy & Law is a series which closely monitors the developments in energy law. Since the liberalisation of the gas and electricity markets and the development of sustainable energy sources, the European energy markets have been in constant development.
Market players have adapted themselves to these new market circumstances and the market structure of the energy sector has change thoroughly under the influence of free competition. The implementation of the EU liberalisation directives will change the organisation and working methods of the energy markets.
Energy & Law is published in parallel with the Dutch series Energie & Recht.
- Prof. Martha M. Roggenkamp (University of Groningen, the Netherlands) - editor in chief
- Prof K. Deketelaere (University of Leuven, Belgium and University of Dundee, Scotland)
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