气候变化领域集成服务门户(CCPortal): Fighting the wrong battle? A critical assessment of arguments against nodal electricity prices in the European debate

CCPortal

DOI	10.1016/j.enpol.2022.113220
	Fighting the wrong battle? A critical assessment of arguments against nodal electricity prices in the European debate
	Eicke, Anselm; Schittekatte, Tim
发表日期	2022
ISSN	0301-4215
EISSN	1873-6777
卷号	170 页码:12
英文摘要	Contrary to liberalized U.S. electricity markets that apply nodal pricing, European power markets rely on uni-form pricing within bidding zones. Europe's zonal pricing model is challenged by an increasing mismatch be-tween network and generation expansion within bidding zones, as well as the complexity of adequately redefining the existing bidding zone configuration. A potential solution is to transition to nodal pricing. The academic literature provides strong evidence of significant cost savings from such a transition. The question is: Why has nodal pricing persistently been discarded in Europe? It cannot be denied that implementing nodal pricing would require significant changes to the European market design. However, the debate in Europe has mostly focused on perceived flaws of the concept of nodal pricing. In this paper, we identify the main arguments against the concept of nodal pricing brought forward by European stakeholders. We group the arguments into the six categories: susceptibility to market power, barriers to unlock flexibility, market liquidity concerns, increased investment risks, unmanageable complexity, and political undesirability of locational price differentiation. Our contribution is to critically assess each of the arguments. We demonstrate that they do not explain, nor justify, the opposition to nodal pricing.
英文关键词	Nodal electricity market; Zonal electricity market; US electricity Market; European electricity market
学科领域	Economics; Energy & Fuels; Environmental Sciences; Environmental Studies
语种	英语
WOS研究方向	Business & Economics ; Energy & Fuels ; Environmental Sciences & Ecology
WOS记录号	WOS:000876937700009
来源期刊	ENERGY POLICY
文献类型	期刊论文
条目标识符	http://gcip.llas.ac.cn/handle/2XKMVOVA/272057
作者单位	Massachusetts Institute of Technology (MIT); European University Institute
推荐引用方式 GB/T 7714	Eicke, Anselm,Schittekatte, Tim. Fighting the wrong battle? A critical assessment of arguments against nodal electricity prices in the European debate[J],2022,170:12.
APA	Eicke, Anselm,&Schittekatte, Tim.(2022).Fighting the wrong battle? A critical assessment of arguments against nodal electricity prices in the European debate.ENERGY POLICY,170,12.
MLA	Eicke, Anselm,et al."Fighting the wrong battle? A critical assessment of arguments against nodal electricity prices in the European debate".ENERGY POLICY 170(2022):12.