Engineering, Economics and Regulation of the Electric Power Sector

Readings

MODULE	READINGS
A: Power system operation and management	Perez-Arriaga, Ignacio J., Hugh Rudnick, and Michel Rivier. “Electric Energy Systems—An Overview.” Chapter 1 in Electric Energy Systems: Analysis and Operation. Gomez-Exposito, Antonio, Antonio J. Conejo, and Claudio Canizares, eds. Boca Raton, FL: CRC Press, 2009. ISBN: 9780849373657. “The Role of Electricity.” Brussels, Belgium: Eurelectric, 2007. EPRI Energy Technology Assessment Center. “The Power to Reduce CO2 Emissions.” Discussion paper prepared for Electric Power Research Institute (EPRI) Summer Seminar, Palo Alto, CA, August 2007. de Jong, E. C. W. “Low Carbon Electricity Systems.” Arnhem, Netherlands: KEMA Consulting, 2009.
B: The regulatory function	Perez-Arriaga, Ignacio J., et al. “Traditional Regulation of the Electricity Industry.” Regulation of Energy Utilities Training Course. Florence, Italy: Florence School of Regulation, 1985. Joskow, Paul. “The Difficult Transition to Competitive Electricity Markets in the U.S.” Prepared for the Conference “Electricity Deregulation: Where From Here?” Texas A&M University, April 4, 2003. Holland, Stephen P., and John L. Neufeld. “Brokering Power.” IEEE Power & Energy Magazine 7, no. 5 (2009): 36-43. Jamison, Mark, Sanford Berg, Farid Gasmi, and Jose Tavara. “Annotated Reading List for a Body of Knowledge on the Regulation of Utility Infrastructure and Services.” Washington DC: World Bank, 2004. Al-Sunaidy, A., and R. Green. “Electricity Deregulation in OECD (Organization for Economic Cooperation and Development) Countries.” Energy 31 (2006): 769–787. Joskow, Paul. “Markets for Power in the United States: An Interim Assessment.” The Energy Journal 27, no. 1 (2006): 1-36. (PDF - 1.0MB) ———. “Challenges for Creating a Comprehensive National Electricity Policy.” Cambridge, MA: MIT Center for Energy and Environmental Policy Research, 2008. (PDF) Sioshansi, Fareidoon P., and Wolfgang Pfaffenberger, eds. Electricity Market Reform: An International Perspective. Oxford, UK: Elsevier Science, 2006. ISBN: 9780080450308. (Read the Foreword and Introduction)
C: Distribution and regulation of monopolies	Gomez San Roman, Tomas. “The Economics of Regulation: Monopolistic Activities.” Energy Regulators Training Course. Florence, Italy: Florence School of Regulation, 2003. Joskow, Paul. “Incentive Regulation for Electricity Networks.” CESifo Forum (2006): 1-9. Rivier, Juan, et al. “Power Quality Regulation Under the New Regulatory Framework of Distribution Systems.” Proceedings of the 13th PSCC Vol. 2. Trondheim, Norway: PSCC, 1999, pp. 891-897. Scheepers, Martin, et. al. “Regulatory Improvements for Effective Integration of Distributed Generation into Electricity Distribution Networks.” Summary of the DG-GRID Project Results. Petten, Netherlands: Energy Research Center of the Netherlands, 2007. Joskow, Paul. “Incentive Regulation in Theory and Practice: Electricity Distribution and Transmission Networks.” Working paper. Cambridge, MA: MIT Center for Energy and Environmental Policy Research, January 21, 2006. “Quality of Electricity Supply Improved by Regulators’ Incentive-penalty Regimes.” Press Release PR-09-04, Council of European Energy Regulators (CEER), February 23, 2009.
D: Electricity generation: optimization models, theory and practice of wholesale markets.	“The Costs of Generating Electricity.” London, UK: The Royal Academy of Engineering, 2004. García González, Javier. “Decision Support Models in Electric Power Systems.” Madrid, Spain: Universidad Pontificia Comillas, October 2007. Ventosa, Mariano, and Pedro Linares. “The Economics of Regulation: Competitive Activities.” Energy Regulators Training Course. Florence, Italy: Florence School of Regulation, 2003. O’Neill, Richard, Udi Helman, Benjamin Hobbs, and Ross Baldick. “Independent System Operators in the USA: History, Lessons Learned, and Prospects.” Chapter 14 in Electricity Market Reform: An International Perspective. Edited by Sioshansi, Fareidoon P., and Wolfgang Pfaffenberger. Oxford, UK: Elsevier Science, 2006. ISBN: 9780080450308. Gribik, Paul R., William W. Hogan, and Susan L. Pope. “Market-Clearing Electricity Prices and Energy Uplift.” Working paper. Cambridge, MA: Harvard Kennedy School of Government, December 31, 2007. (PDF)
E: Transmission	Rivier, Michel. “Electricity Power Transmission.” Regulation of Energy Utilities Training Course. Florence, Italy: Florence School of Regulation, 2009. Perez-Arriaga, Ignacio J., et al. “Marginal Pricing of Transmission Services: An Analysis of Cost Recovery.” IEEE Transactions on Power Systems 10, no. 1 (1995): 448-454. Joskow, Paul. “Transmission Policy in the United States.” Utilities Policy 13, no. 2 (2005): 95-115. Olmos, Luis, and Ignacio Perez-Arriaga. “A Comprehensive Approach for Computation and Implementation of Efficient Electricity Transmission Network Charges.” Working paper #09-010. Cambridge, MA: MIT Center for Energy and Environmental Policy Research, July 2009.
F: Electricity tariffs	Rivier, Juan. “Electricity Tariff Design.” Energy Regulators Training Course. Florence, Italy: Florence School of Regulation, 2009. Borenstein, Severin, Michael Jaske, and Arthur Rosenfeld. “Dynamic Pricing, Advanced Metering and Demand Response in Electricity Markets.” Working paper #105. Berkeley, CA: University of California Energy Initiative, October 2002.
G: Retail markets	Batlle, Carlos. “Electricity and Retail Markets.” Energy Regulators Training Course. Florence, Italy: Florence School of Regulation, 2009. Batlle, Carlos, and Pablo Rodilla. “Electricity Demand Response Tools: Current Status and Outstanding Issues.” European Review of Energy Markets 3, no. 2 (2009). (PDF) Tierney, Susan, and Todd Schatzki. “Competitive Procurement of Retail Electricity Supply: Recent Trends in State Policies and Utility Practices.” The Electricity Journal 22, no. 1 (2009): 50-62. Joskow, Paul L. “Why do we need Electricity Retailer? Or: Can You Get it Cheaper Wholesale?” Working paper. Cambridge, MA: MIT Center for Energy and Environmental Policy Research, February 13, 2000. (PDF) Littlechild, Stephen C. “Why We Need Electricity Retailers: A Reply to Joskow on Wholesale Spot Price Pass-through.” Cambridge Working Papers in Economics #0008. Cambridge, UK: Faculty of Economics, University of Cambridge, August 2000. Vazquez, Carlos, Carlos Batlle, Sara Lumbreras, and Ignacio J. Perez-Arriaga. “Electricity Retail Regulation in a Context of Vertical Integration: the Debate on Regulated Tariffs.” IIT Working Paper IIT-06-028A. Madrid, Spain: Universidad Pontificia Comillas, December 2006. (PDF) Vasconcelos, Jorge. “Survey of Regulatory and Technological Developments Concerning Smart Metering in the European Union Electricity Market.” RSCAS Policy Papers. Florence, Italy: European University Institute, 2008.
H: Long-term guarantee of supply in generation	Pérez-Arriaga, Ignacio J. “Security of Electricity Supply in Europe in a Short, Medium and Long-term Perspective.” European Review of Energy Markets 2, no. 2 (2007): 1-28. (PDF) Batlle, Carlos, and Ignacio J. Perez-Arriaga. “Design Criteria for Implementing a Capacity Mechanism in Deregulated Electricity Markets.” Utilities Policy 16 (2008) 184-193. Gottstein, Meg, and Lisa Schwartz. “The Role of Forward Capacity Markets in Increasing Demand-Side and Other Low-Carbon Resources: Experience and Prospects.” Montpelier, VT: Regulatory Assistance Project, April 2010. Vazquez, Carlos, Michel Rivier, and Ignacio J. Perez-Arriaga. “A Market Approach to Long-term Security of Supply.” IEEE Transactions on Power Systems 17, no. 2 (2002): 349-357. Nguyen, François, and Ulrik Stridbaek , et al. “Tackling Investment Challenges in Power Generation.” Paris, France: International Energy Agency, 2007. Batlle, Carlos, Carlos Vazquez, Michel Rivier, and Ignacio J. Perez-Arriaga. “Enhancing Power Supply Adequacy in Spain: Migrating from Capacity Payments to Reliability Options.” Energy Policy 35 (2007): 4545–4554. ———. “Security of Supply in the Dutch Electricity Market: the Role of Reliability Options.” Prepared for the Office for Energy Regulation of The Netherlands. Madrid, Spain: Universidad Pontificia Comillas, December 2003. Cramton, Peter, and Steven Stoft. “Colombia Firm Energy Market.” February 2007. (PDF)
I: System operation in practice	No assigned readings
J: Generation from renewable energy sources	“The Support of Electricity from Renewable Energy Sources.” Commission Staff Working Document. Brussels, Belgium: Commission of the European Communities, January 23, 2008. Logan, Jeffrey, and Stan Mark Kaplan. “Wind Power in the United States: Technology, Economic, and Policy Issues.” Report for Congress. Washington, DC: Congressional Research Service, June 20, 2008. “SPP WITF Wind Integration Study.” Final report prepared for Southwest Power Pool. Boston, MA: Charles River Associates, January 4, 2010. Wiser, Ryan, Mark Bolinger, and Galen Barbose. “Using the Federal Production Tax Credit to Build a Durable Market for Wind Power in the United States.” The Electricity Journal 20, no. 9 (2007): 77-88. Wiser, Ryan, Kevin Porter, and Robert Grace. “Evaluating Experience with Renewables Portfolio Standards in the United States.” Mitigation and Adaptation Strategies for Global Change 10 (2005): 237–263.
K: Regional electricity markets	Jamasb, Tooraj, and Michael Pollitt. “Electricity Market Reform in the European Union: Review of Progress Toward Liberalization and Integration.” Working Paper #05-003. Cambridge, MA: MIT Center for Energy and Environmental Policy Research, March 2005. Sierra, Jose, and Ignacio Perez-Arriaga. “Unity for All.” IEEE Power & Energy Magazine 7, no. 5 (2009): 18-25. de Jong, Jacques, et al. “A Study on the Inter-TSO Compensation Mechanism.” Florence, Italy: Florence School of Regulation, October 2005. “Development and Implementation of a Coordinated Model for Regional and Inter-regional Congestion Management.” Interim Report. Brussels, Belgium: EuroPEX, April 2008. Energy, Transport, and Water Department. “Building Regional Power Pools: A Toolkit.” Washington DC: The World Bank Group, 2005.
L: Sustainability aspects	Creyts, Jon, et al. “Unlocking Energy Efficiency in the U.S. Economy.” Executive Summary. McKinsey Global Energy and Materials, July 2009. Linares, Pedro. “Energy Efficiency and the Environment.” Madrid, Spain: Universidad Pontificia Comillas, March 2009. National Action Plan for Energy Efficiency. “Aligning Utility Incentives with Investment in Energy Efficiency.” Prepared by Val R. Jensen, ICF International, November 2007. Michaels, Harvey, and Kat Donnelly. “Energy Innovation: Enabling Innovation on the Consumer Side of the Smart Grid.” Working paper. Cambridge, MA: MIT Industrial Performance Center, February 5, 2010.
M: Energy efficiency	Perez-Arriaga, Ignacio J., and Pedro Linares. “Market vs. Regulation: A Role for Indicative Energy Planning.” The Future of Electricity: Papers in Honor of David Newbery. The Energy Journal, Special Issue, 2008. Linares, Pedro, and Ignacio J. Perez-Arriaga. “Promoting Investment in Low-Carbon Energy Technologies.” European Review of Energy Markets 3, no. 2 (2009): 9-21. Hamilton, Kirsty. “Unlocking Finance for Clean Energy: the Need for ‘Investment Grade’ Policy.” Energy, Environment, and Development Programme Paper. London, UK: Chatham House, September 2004.
N: Universal access to electricity	“Energy Access Theme Results.” Synthesis/Compilation Report. Global Network on Energy for Sustainable Development (GNESD), April 30, 2004. Reiche, Kilian, Bernard Tenenbaum, and Clemencia Torres de Mastle. “Electrification and Regulation: Principles and a Model Law.” Energy and Mining Sector Board Discussion Paper, no. 18. Washington DC: The World Bank Group, July 2006. (PDF) Besant-Jones, John E. “Reforming Power Markets in Developing Countries: What Have We Learned?” Energy and Mining Sector Board Discussion Paper, no. 19. Washington DC: The World Bank Group, September 2006. (PDF - 1.3MB) Legros, Gwenaelle, et al. “The Energy Access Situation in Developing Countries.” New York, NY: World Health Organization and United Nations Development Programme, November 2009.
O: CO2 markets and prices	Ellerman, Denny A. “Lessons for the United States from the European Union’s CO2 Emissions Trading Scheme.” Chapter 1 in Cap-and-Trade: Contributions to the Design of a U.S. Greenhouse Gas Program. A. Denny Ellerman, Mort Webster, et al. Cambridge, MA: MIT Center for Energy and Environmental Policy Research, 2008. Ellerman, Denny A., Paul Joskow, and David Harrison, Jr. “Emissions Trading in the U.S.: Experience, Lessons, and Considerations for Greenhouse Gases.” Prepared for the Pew Center on Global Climate Change, 2003.