‘Nudging’ energy users: regulatory measures to address the risk of aggregate peak demand in European electricity markets

For decades regulators in the energy sector have focused on facilitating the maximisation of energy supply in order to meet demand through liberalisation and removal of market barriers. The debate on climate change has emphasised a new type of risk in the balance between energy demand and supply: excessively high energy demand brings about significantly negative environmental and economic impacts. This is because if a vast number of users is consuming electricity at the same time, energy suppliers have to activate dirty old power plants with higher greenhouse gas emissions and higher system costs. The creation of a Europe-wide electricity market requires a systematic investigation into the risk of aggregate peak demand. This paper draws on the e-Living Time-Use Survey database to assess the risk of aggregate peak residential electricity demand for European energy markets. Findings highlight in which countries and for what activities the risk of aggregate peak demand is greater. The discussion highlights which approaches energy regulators have started considering to convince users about the risks of consuming too much energy during peak times. These include ‘nudging’ approaches such as the roll-out of smart meters, incentives for shifting the timing of energy consumption, differentiated time-of-use tariffs, regulatory financial incentives and consumption data sharing at the community level.

Waste cooking oil as an energy resource: review of Chinese policies

Converting waste cooking oil into biofuel represents a three-win solution, dealing simultaneously with food security, pollution, and energy security. In this paper, we encode the policy documents of waste cooking oil refining biofuel in China based on content analysis, and explore the related policies from the two dimensions as basic policy tools and enterprises supply chain. Research indicates the weak institution coordination of policy issuing entities. Also, the findings show that tools of regulatory control and goal planning are overused. Policies of government procurement, outsourcing and biofuel consumption are relatively scarce. Generally, government focuses more on formulating policies from the strategic, administrative and regulatory aspects, while less on market-oriented initiatives as funding input and financial support.

A dwelling-level investigation into the physical and socio-economic drivers of domestic energy consumption in England

The UK Government's Department for Energy and Climate Change has been investigating the feasibility of developing a national energy efficiency data framework covering both domestic and non-domestic buildings. Working closely with the Energy Saving Trust and energy suppliers, the aim is to develop a data framework to monitor changes in energy efficiency, develop and evaluate programmes and improve information available to consumers. Key applications of the framework are to understand trends in built stock energy use, identify drivers and evaluate the success of different policies. For energy suppliers, it could identify what energy uses are growing, in which sectors and why. This would help with market segmentation and the design of products. For building professionals, it could supplement energy audits and modelling of end-use consumption with real data and support the generation of accurate and comprehensive benchmarks. This paper critically examines the results of the first phase of work to construct a national energy efficiency data-framework for the domestic sector focusing on two specific issues: (a) drivers of domestic energy consumption in terms of the physical nature of the dwellings and socio-economic characteristics of occupants and (b) the impact of energy efficiency measures on energy consumption.

Is intrinsic energy efficiency reflected in the pricing of office leases?

This paper investigates whether the intrinsic energy efficiency rating of an office building has a significant impact on its rental value. A sample of 817 transactions for offices with Energy Performance Certificates (EPCs) in the UK is used to assess whether a pricing differential can be identified, depending on the energy rating. While previous analyses of this topic have typically relied on appraisal-based and/or asking rent data, the dataset used in this research contains actual contract rents as well as information on lease terms. The results indicate a significant rental premium for energy-efficient buildings. However, it is found that this premium appears to be mainly driven by the youngest cohort of state-of-the-art energy-efficient buildings. The results also show that tenants of more energy-efficient buildings tend to pay a lower service charge, but this link appears to be rather weak and limited to newer buildings. Hence, it is argued that the information contained in the EPC is still not fully taken into account in the UK commercial property market with the possible exception of both the highest and the lowest EPC ratings.

Mixing apples with oranges? Partisanship and active labour market policies in Europe

There are competing theoretical expectations and conflicting empirical results concerning the impact of partisanship on spending on active labour market policies (ALMPs). This paper argues that one should distinguish between different ALMPs. Employment incentives and rehabilitation programmes incentivize the unemployed to accept jobs. Direct job creation reduces the supply of labour by creating non-commercial jobs. Training schemes raise the human capital of the unemployed. Using regression analysis this paper shows that the positions of political parties towards these three types of ALMPs are different. Party preferences also depend on the welfare regime in which parties are located. In Scandinavia, left-wing parties support neither employment incentives nor direct job creation schemes. In continental and Liberal welfare regimes, left-wing parties oppose employment incentives and rehabilitation programmes to a lesser extent and they support direct job creation. There is no impact of partisanship on training. These results reconcile the previously contradictory findings concerning the impact of the Left on ALMPs.

Chronic limitations of neo-liberal capitalism and oligopolistic markets: an urgent case for socialized capital

Purpose – The purpose of this paper is to highlight the serious limitations of neo-liberal capitalism and urge for a shift to socialized capital before further economic deterioration leads to a succession of global conflicts. Design/methodology/approach – This conceptual paper adopts a macro perspective in presenting argument on how global, financial markets integration and capital flow liberalization have led to inadequate market and corporate governance measures. The argument is couched in a selected literature and is preceded by a proposed solution – the requirement for socialized capital. An analysis of the nature of socialized capital is outlined and the questions that require attention identified if a paradigm shift from neo-liberal capitalism is to take place. Findings – The need to urgently shift to a new philosophy of capitalism is overwhelming. Emphasized is that capital needs to adopt a socialised identity and is supported by investment horizons of 30 years or more. It is argued that non-market (e.g. state, NGOs, civil society) intervention is critical in setting appropriate frameworks within which socialized capital can operate. Research limitations/implications – This is a theoretical paper, in which questions are raised which require transparent, public debate. Originality/value – The paper presents the case for a fundamental reconsideration of present day markets, the role of capital and the influence of elites in determining the public good.

Privatisation and cross-border electricity trade: from internal market to European Supergrid?

he perspective European Supergrid would consist of an integrated power system network, where electricity demands from one country could be met by generation from another country. This paper makes use of a bi-linear fixed-effects model to analyse the determinants for trading electricity across borders among 34 countries connected by the European Supergrid. The key question that this paper aims to address is the extent to which the privatisation of European electricity markets has brought about higher cross-border trade of electricity. The analysis makes use of distance, price ratios, gate closure times, size of peaks and aggregate demand as standard determinants. Controlling for other standard determinants, it is concluded that privatisation in most cases led to higher power exchange and that the benefits are more significant where privatisation measures have been in place for a longer period.

Energy performance ratings and house prices in Wales: an empirical study

This paper investigates the price effect of EPC ratings on the residential dwelling prices in Wales. It examines the capitalisation of energy efficiency ratings into house prices using two approaches. The first adopts a cross-sectional framework to investigate the effect of EPC band (and EPC rating) on a large sample of dwelling transactions. The second approach is based on a repeat-sales methodology to examine the impact of EPC band and rating on house price appreciation. The results show that, controlling for other price influencing dwelling characteristics, EPC band does affect house prices. This observed influence of EPC on price may not be a result of energy performance alone; the effect may be due to non-energy related benefits associated with certain types, specifications and ages of dwellings or there may be unobserved quality differences unrelated to energy performance such as better quality fittings and materials. An analysis of the private rental segment reveals that, in contrast to the general market, low-EPC rated properties were not traded at a significant discount, suggesting different implicit prices of potential energy savings for landlords and owner-occupiers.

Energy performance ratings and house prices in Wales: an empirical study

This paper investigates the effect of Energy Performance Certificate (EPC) ratings on residential prices in Wales. Drawing on a sample of approximately 192,000 transactions, the capitalisation of energy efficiency ratings into house prices is investigated using two approaches. The first adopts a cross-sectional framework to investigate the effect of EPC rating on price. The second approach applies a repeat-sales methodology to investigate the impact of EPC rating on house price appreciation. Statistically significant positive price premiums are estimated for dwellings in EPC bands A/B (12.8%) and C (3.5%) compared to houses in band D. For dwellings in band E (−3.6%) and F (−6.5%) there are statistically significant discounts. Such effects may not be the result of energy performance alone. In addition to energy cost differences, the price effect may be due to additional benefits of energy efficient features. An analysis of the private rental segment reveals that, in contrast to the general market, low-EPC rated dwellings were not traded at a significant discount. This suggests different implicit prices of potential energy savings for landlords and owner-occupiers.

The Application Of Renewable Energy For Prefab Houses In Germany

Within the framework of the REBUS project the German building industry has been investigated regarding their energy concepts. The intention was to evaluatethe establishment of renewable energy sources on the German market for new built houses and prefab houses in particular. For this purpose the products of 85manufacturers of prefab houses have been analyzed. Of special interest was the applicationof heating and hot water systems driven by solar energy and biomass. The results show that both techniques are well accepted and established. Almost 90% of themanufacturers offer solar systems on request and almost 70% heating systems based on Pellets. 24% offered solar and 7% as standard options in their range. From theachieved figures the potential of the Swedish market can be worked out. Strategies to introduce renewable energy to a greater extent to Swedish house manufacturers and builders might also be found.

Solar Energy assessment based on weather station data for direct site monitoring in Indonesia

This thesis evaluates different sites for a weather measurement system and a suitable PV- simulation for University of Surabaya (UBAYA) in Indonesia/Java. The weather station is able to monitor all common weather phenomena including solar insolation. It is planned to use the data for scientific and educational purposes in the renewable energy studies. During evaluation and installation it falls into place that official specifications from global meteorological organizations could not be meet for some sensors caused by the conditions of UBAYA campus. After arranging the hardware the weather at the site was monitored for period of time. A comparison with different official sources from ground based and satellite bases measurements showed differences in wind and solar radiation. In some cases the monthly average solar insolation was deviating 42 % for satellite-based measurements. For the ground based it was less than 10 %. The average wind speed has a difference of 33 % compared to a source, which evaluated the wind power in Surabaya. The wind direction shows instabilities towards east compared with data from local weather station at the airport. PSET has the chance to get some investments to investigate photovoltaic on there own roof. With several simulations a suitable roof direction and the yearly and monthly outputs are shown. With a 7.7 kWpeak PV installation with the latest crystalline technology on the market 8.82 MWh/year could be achieved with weather data from 2012. Thin film technology could increase the value up to 9.13 MWh/year. However, the roofs have enough area to install PV. Finally the low price of electricity in Indonesia makes it not worth to feed in the energy into the public grid.

Pricing and competition in the Swedish retail market for electricity

Sweden, together with Norway, Finland and Denmark, have created a multi-national electricity market called NordPool. In this market, producers and retailers of electricity can buy and sell electricity, and the retailers then offers this electricity to end consumers such as households and industries. Previous studies have shown that pricing at the NordPool market is functioning quite well, but no other study has to my knowledge studied if pricing in the retail market to consumers in Sweden is well functioning. If the market is well functioning, with competition and low transaction costs when changing electricity retailer, we would expect that a homogeneous good such as electricity would be sold at the approximately same price, and that price changes would be highly correlated, in this market. Thus, the aim of this study is to test whether the price of Vattenfall, the largest energy firm in the Swedish market, is highly correlated to the price of other firms in the Swedish retail market for electricity. Descriptive statistics indicate that the price offered by Vattenfall is quite similar to the price of other firms in the market. In addition, regression analysis show that the correlation between the price of Vattenfall and other firms is as high as 0.98.

One rapidly growing market of Sweden: organic food : A qualitative study portraying some consumers’ decision to purchase organic food

In recent years there has been a significantly rising trend amongst consumers for health and environmental issues, which has resulted in greater attention for and sales of organic food. Organic food production strives to use natural resources, such as land, energy and water in a sustainable way and the products does not contain artificial fertilizers or chemical pesticides. However, organic food products are also often more expensive and less available in comparison to conventional food products. Despite this, interest for and sales of organic food products have increased around the globe, and in Sweden particularly, the increase in sales has grown largely from an international perspective. This thesis is of qualitative character and is focused on studying some consumers from the Swedish market of organic food. The purpose of this thesis is to contribute with a better understanding on the buying decision process regarding organic food purchase. To achieve this, the authors have studied some consumers that purchase organic food and have searched for patterns that could be identified in the decision process. The consumer buying decision process model has been used for portrayal of the chosen consumers’ decision to purchase organic food products. Interviews with six Swedish consumers were conducted, whereas each respondent continuously purchase organic food products. Results show that the purchase of organic food products begins with discovering an unsatisfied need state, which the consumers of this study desired to change with the purchase of organic food products. This study show how six consumers reason when passing through the stages of the buying decision process, in order to satisfy their desired need state. The authors found that the respondents feel satisfied with purchasing organic food products, which lead them in to continuously buying these products. Altogether, the findings contribute with knowledge that can come to be helpful when wanting to understand more about the consumer decision to purchase organic food.

Entry on the Brazilian renewable power market: a case study

Conferências internacionais sobre o clima, bem como crescente conscientização sobre as questões de sustentabilidade lançaram luz sobre o papel fundamental que as energias renováveis poderiam desempenhar na transição energética. Ao contrário de combustíveis fósseis, elas podem ser regeneradas em um curto período de tempo e, por conseguinte, espera-se que sejam uma parte da solução para reduzir o aquecimento global. O Brasil sempre teve um forte setor hidrelétrico, mas agora está na vanguarda em relação a todas as outras fontes de energias alternativas, como energia eólica, biomassa o energia solar. Estas indústrias são uma promessa para um futuro próspero, graças ao potencial natural do país, bem como uma legislação de apoio, e estão atraindo muitas empresas locais e internacionais. Este estudo tem como objetivo preencher uma lacuna na literatura analisando o exemplo de uma empresa estrangeira que entra no mercado da energia renovável no Brasil. Baseando-se na literatura como um fundo conceptual, um único estudo de caso têm sido realizados para delinear todos os aspectos do processo de entrada. Neste desenvolvimento, relações causais entre as orientações estratégicas e a evolução do negócio foram identificadas. Esta pesquisa traz uma contribuição para as discussões acadêmicas sobre as dinâmicas de entrada no setor de energia renovável através de evidências do mercado brasileiro.