Leveraging the energy transition : the role of long-term contracts

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dc.contributor.authorHANCHER, Leigh
dc.contributor.authorDEZOBRY, Guillaume
dc.contributor.authorGLACHANT, Jean-Michel
dc.contributor.authorMENEGATTI, Emma Solène
dc.date.accessioned2024-05-22T11:40:47Z
dc.date.available2024-05-22T11:40:47Z
dc.date.issued2024
dc.description.abstractThe interaction of “Contracts”, “Markets” and “Law and Regulation” have informed the economic analysis of market economies for over 40 years. One of the main lessons learnt is that (contracts), (markets) and (law and regulation) always interact and co-determine the outcome and performances of the electricity industry. This study identifies the “electricity world” in which long term contracts (LTCs) can be implemented. We distinguish between: 1° The old primary, and ideal, world of “Just Building Open Markets”, the priority of our European authorities at the beginning of the 21st Century, to transition away from the previous world of vertically integrated monopolies and nationally closed borders. 2° The secondary, empirical, world of “Co-building a Set of Working Markets”, in which law and regulation intervened into the pricing of peaking periods (in the wholesale market) and of capacity adequacy (in a parallel market), as well as for entry into nuclear or green generation investments (support schemes). 3° Finally, the tertiary, fully policy driven world of an “Accelerated Decarbonization Push towards a Net Zero Industry”; where we now stand in the EU, expecting to transition in about a decade, around 2035, to entirely decarbonized electricity production and to already strong electrification of all professional energy consumption. In the meantime, LTCs offered to professional consumers, although not a core element of most of the market designs implemented in the succession of “worlds of electricity markets”, has always existed in parallel to the mainstream changes.en
dc.format.mimetypeapplication/pdf
dc.identifier.doi10.2870/0857
dc.identifier.isbn9789294665492
dc.identifier.urihttps://hdl.handle.net/1814/76880
dc.language.isoenen
dc.orcid.uploadTRUE
dc.publisherEuropean University Instituteen
dc.relation.ispartofseriesEUIen
dc.relation.ispartofseriesRSCen
dc.relation.ispartofseriesResearch Project Reporten
dc.relation.ispartofseries2024/05en
dc.relation.ispartofseriesFlorence School of Regulationen
dc.relation.ispartofseries[Energy]en
dc.rightsinfo:eu-repo/semantics/openAccessen
dc.rights.licenseAttribution 4.0 Internationalen
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/en
dc.subjectLong-term contractsen
dc.subjectDecarbonisationen
dc.subjectPrice volatilityen
dc.subjectForeclosureen
dc.subjectCompetition lawen
dc.titleLeveraging the energy transition : the role of long-term contractsen
dc.typeTechnical Reporten
dspace.entity.typePublication
eui.subscribe.skiptrue
person.identifier.orcid0000-0002-0237-5629
person.identifier.other27580
person.identifier.other30744
person.identifier.other52849
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relation.isAuthorOfPublicationce0d5277-d7d1-4bab-b64c-812f4357986f
relation.isAuthorOfPublication82f2c3b2-880e-4852-8d9c-d8c50353b656
relation.isAuthorOfPublication.latestForDiscovery6c305848-2709-4be3-818f-c23c7e0a44ac
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