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The Spanish Electricity Industry: Plus ca change

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  • Claude Crampes and Natalia Fabra

Abstract

In this paper we describe the Spanish electricity industry and its current regulatory regime. Special emphasis is given to the description and discussion of market design issues (including stranded cost recovery), the evolution of market structure, investment in generation capacity and network activities. We also provide a critical assessment of the 1997 regulatory reform, which did not succeed in introducing effective competition, but retained an opaque regulation which has been subject to continuous governmental interventionism. Furthermore, the implementation of the Kyoto agreement could show the lack of robustness of the regulatory regime.

Suggested Citation

  • Claude Crampes and Natalia Fabra, 2005. "The Spanish Electricity Industry: Plus ca change," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 127-154.
    • Handle: RePEc:aen:journl:2005se-a06
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    References listed on IDEAS

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    1. David M. Newbery, 1998. "Competition, Contracts, and Entry in the Electricity Spot Market," RAND Journal of Economics, The RAND Corporation, vol. 29(4), pages 726-749, Winter.
    2. Emili Grifell‐Tatjé & C. A. Knox Lovell, 2003. "The Managers versus the Consultants," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(1), pages 119-138, March.
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    Cited by:

    1. Xavier Vives, 2011. "Strategic Supply Function Competition With Private Information," Econometrica, Econometric Society, vol. 79(6), pages 1919-1966, November.
    2. Erdogdu, Erkan, 2011. "The impact of power market reforms on electricity price-cost margins and cross-subsidy levels: A cross country panel data analysis," Energy Policy, Elsevier, vol. 39(3), pages 1080-1092, March.
    3. Christos Bentsos & Demetris Koursaros & Kyriaki G. Louka & Konstantinos D. Melas & Nektarios A. Michail, 2023. "Liquefied Natural Gas Prices and Their Relationship with a Country’s Energy Mix: A Case Study for Greece," Energies, MDPI, vol. 16(22), pages 1-16, November.
    4. Weigt, Hannes, 2009. "A Review of Liberalization and Modeling of Electricity Markets," MPRA Paper 65651, University Library of Munich, Germany.
    5. Josean Garrués-Irurzun, 2022. "The Regulation of the Spanish Electricity Sector: A Long Way to Convergence," Energies, MDPI, vol. 15(19), pages 1-15, September.
    6. Aitor Ciarreta & María Espinosa, 2010. "Market power in the Spanish electricity auction," Journal of Regulatory Economics, Springer, vol. 37(1), pages 42-69, February.
    7. repec:ers:journl:v:xv:y:2012:i:sie:p:145-156 is not listed on IDEAS
    8. Bohland, Moritz & Schwenen, Sebastian, 2022. "Renewable support and strategic pricing in electricity markets," International Journal of Industrial Organization, Elsevier, vol. 80(C).
    9. Isabel Soares & Andres Faina & Jose Lopez & Laura Varela-Candamio, 2012. "What’s Happening to the European Electricity Market?," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 145-156.
    10. Anette Boom & Stefan Buehler, 2020. "Vertical structure and the risk of rent extraction in the electricity industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(1), pages 210-237, January.
    11. Figueiredo, Nuno Carvalho & Silva, Patrícia Pereira da & Cerqueira, Pedro A., 2015. "Evaluating the market splitting determinants: evidence from the Iberian spot electricity prices," Energy Policy, Elsevier, vol. 85(C), pages 218-234.
    12. Fabra, Natalia & de Frutos, Maria-Angeles, 2008. "On the Impact of Forward Contract Obligations in Multi-Unit Auctions," CEPR Discussion Papers 6756, C.E.P.R. Discussion Papers.
    13. Malaguzzi Valeri, Laura, 2006. "Comparison of Electricity Deregulation around the World and Implications for Ireland," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2006(3-Autumn), pages 38-63.
    14. Perez, Yannick & Ramos Real, Francisco Javier, 2008. "How to make a European integrated market in small and isolated electricity systems? The case of the Canary Islands," Energy Policy, Elsevier, vol. 36(11), pages 4159-4167, November.
    15. Sáenz de Miera, Gonzalo & del Ri­o González, Pablo & Vizcaino, Ignacio, 2008. "Analysing the impact of renewable electricity support schemes on power prices: The case of wind electricity in Spain," Energy Policy, Elsevier, vol. 36(9), pages 3345-3359, September.
    16. Aitor Ciarreta & María Espinosa, 2010. "Market power in the Spanish electricity auction," Journal of Regulatory Economics, Springer, vol. 37(1), pages 42-69, February.
    17. Hernandez Martinez, Fernando, 2006. "La producción de energía eléctrica en España: Análisis económico de la actividad tras la liberalización del Sector Eléctrico [Electricity output in Spain: Economic analysis of the activity after li," MPRA Paper 18050, University Library of Munich, Germany.
    18. Linares, P. & Santos, F.J. & Pérez-Arriaga, I.J., 2008. "Scenarios for the evolution of the Spanish electricity sector: Is it on the right path towards sustainability?," Energy Policy, Elsevier, vol. 36(11), pages 4057-4068, November.
    19. Vítor Marques & Isabel Soares & Adelino Fortunato, 2008. "Uniform Price Market and Behaviour Pattern: What Does the Iberian Electricity Market Point Out?," GEMF Working Papers 2008-08, GEMF, Faculty of Economics, University of Coimbra.

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