Home | Publications | Competition and the Single Electricity Market: Which Lessons for Ireland
Competition and the Single Electricity Market: Which Lessons for Ireland
ESRI working papers represent un-refereed work-in-progress by researchers who are solely responsible for the content and any views expressed therein. Any comments on these papers will be welcome and should be sent to the author(s) by email. Papers may be downloaded for personal use only.
This paper examines the redesign 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 which exists in the Irish electricity market. We examine the theoretical and empirical conditions under which forward markets promote competition in the spot and retail markets; in addition, we investigate the impact of concentration in the market on the new capacity payment mechanism. In order to ensure a competitive outcome for consumers, the regulatory authorities should continue to regulate the directed forward contracts made by the dominant firm; moreover, our analysis suggests that the regulator should extend regulation to the price and quantity which the dominant firm bids for holding new reliability options.
ESRI Series Number: 497 Research Area:Energy and Environment Date of Publication: March 4, 2015 Publisher: ESRI Place of Publication: Dublin
About The ESRI
The ESRI works towards a national vision of ‘Informed policy for a better Ireland’. This means producing high-quality analysis to provide robust evidence for policymaking, with the goals of research excellence and policy impact.
The ESRI produces research that contributes to understanding economic and social change in the new international context and that informs public policymaking and civil society in Ireland.