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We demonstrate a simple approach to quantify economic efficiency losses due to inaccurate energy price forecasts. We show that empirically, forecasting errors have their impact on efficiency losses. There are hints that suggest a time-dependent pattern of deadweight losses. Solar infeed, which is considered to be a strongly volatile form of energy, increases the efficiency loss of energy allocations...
This paper demonstrates that cost-free allocation, commonly called grand-fathering, implies an increase in electricity prices even when strong competition prevails on electricity markets. As our estimations for Germany's power sector show, these price increases result in substantial windfall profits, giving rise to public skepticism and calls for an auctioning of certificates in the future. While...
The convergence of power markets is, by definition, emerging from strictly technical reliability concerns to economic reliability concerns. Commonalities of Russian and the Commonwealth of Independent States' power sectors includes structural reforms, power system integration, legislation and price liberalization. Other Asian countries divide reform incentives along macroeconomic lines, however, they...
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