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Competition and the single electricity market: Which lessons for Ireland?

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  • Di Cosmo, Valeria
  • Lynch, Muireann Á.

Abstract

This paper examines the evolution of the Irish Single Electricity Market in order to comply with the European Target Model for electricity. In particular, this work focuses on the challenges raised by the high concentration in the generation sector of the Irish electricity market. We examine the theoretical and empirical conditions under which forward markets promote competition in the spot and retail markets. We also investigate the impact of market concentration on the new capacity payment mechanism. In order to ensure a competitive outcome for consumers, the regulatory authorities should promote competition in the forward market; moreover, the regulator should extend regulation to the price and quantity that the dominant firm bids for holding new reliability options.

Suggested Citation

  • Di Cosmo, Valeria & Lynch, Muireann Á., 2016. "Competition and the single electricity market: Which lessons for Ireland?," Utilities Policy, Elsevier, vol. 41(C), pages 40-47.
    • Handle: RePEc:eee:juipol:v:41:y:2016:i:c:p:40-47
    DOI: 10.1016/j.jup.2016.05.002
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    Cited by:

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    3. Slednev, Viktor & Bertsch, Valentin & Ruppert, Manuel & Fichtner, Wolf, 2017. "Highly resolved optimal renewable allocation planning in power systems under consideration of dynamic grid topology," MPRA Paper 79706, University Library of Munich, Germany.
    4. Di Cosmo, Valeria & Lynch, Muireann Á., 2016. "Competition and the single electricity market: Which lessons for Ireland?," Utilities Policy, Elsevier, vol. 41(C), pages 40-47.
    5. Rettig, E. & Fischhendler, I. & Schlecht, F., 2023. "The meaning of energy islands: Towards a theoretical framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 187(C).
    6. Valeria Di Cosmo & Laura Malaguzzi Valeri, 2018. "How Much Does Wind Power Reduce $$\text {CO}_{2}$$ CO 2 Emissions? Evidence from the Irish Single Electricity Market," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(3), pages 645-669, November.
    7. Lynch, Muireann A, 2017. "Re-evaluating Irish energy policy in light of brexit," Research Notes RN20170201, Economic and Social Research Institute (ESRI).
    8. Valeria Di Cosmo & Sean Collins & Paul Deane, 2017. "The Effect of Increased Transmission and Storage in an Interconnected Europe: an Application to France and Ireland," ESP: Energy Scenarios and Policy 263159, Fondazione Eni Enrico Mattei (FEEM).
    9. Valeria Di Cosmo & Elisa Trujillo-Baute, 2018. "From forward to spot prices: producers, retailers and loss averse consumers in electricity markets," Working Papers 2018/18, Institut d'Economia de Barcelona (IEB).
    10. Filippos Ioannidis & Kyriaki Kosmidou & Kostas Andriosopoulos & Antigoni Everkiadi, 2021. "Assessment of the Target Model Implementation in the Wholesale Electricity Market of Greece," Energies, MDPI, vol. 14(19), pages 1-22, October.
    11. Lynch, Muireann Á. & Di Cosmo, Valeria, 2015. "The Irish Electricity Market: New Regulation to Preserve Competition," Research Notes RN2015/1/1, Economic and Social Research Institute (ESRI).
    12. Simone Di Leo & Marta Chicca & Cinzia Daraio & Andrea Guerrini & Stefano Scarcella, 2022. "A Framework for the Analysis of the Sustainability of the Energy Retail Market," Sustainability, MDPI, vol. 14(12), pages 1-28, June.
    13. Bublitz, Andreas & Keles, Dogan & Zimmermann, Florian & Fraunholz, Christoph & Fichtner, Wolf, 2018. "A survey on electricity market design: Insights from theory and real-world implementations of capacity remuneration mechanisms," Working Paper Series in Production and Energy 27, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    14. Nikolaos Koltsaklis & Athanasios Dagoumas, 2018. "Policy Implications of Power Exchanges on Operational Scheduling: Evaluating EUPHEMIA’s Market Products in Case of Greece," Energies, MDPI, vol. 11(10), pages 1-26, October.
    15. Lynch, Muireann & Longoria, Genaro & Curtis, John, 2021. "Market design options for electricity markets with high variable renewable generation," Utilities Policy, Elsevier, vol. 73(C).
    16. Menton, Cathal & Longoria, Genaro & Farrell, Niall & Lynch, Muireann Á, 2022. "All-island coordination of energy infrastructure and renewable energy supports," Research Series, Economic and Social Research Institute (ESRI), number RS155.
    17. Jemma J. Makrygiorgou & Christos-Spyridon Karavas & Christos Dikaiakos & Ioannis P. Moraitis, 2023. "The Electricity Market in Greece: Current Status, Identified Challenges, and Arranged Reforms," Sustainability, MDPI, vol. 15(4), pages 1-40, February.
    18. McQuinn, Kieran & Foley, Daniel & O'Toole, Conor, 2017. "Quarterly Economic Commentary, Summer 2017," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20172, July.
    19. Bublitz, Andreas & Keles, Dogan & Zimmermann, Florian & Fraunholz, Christoph & Fichtner, Wolf, 2019. "A survey on electricity market design: Insights from theory and real-world implementations of capacity remuneration mechanisms," Energy Economics, Elsevier, vol. 80(C), pages 1059-1078.

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