ECONIS Select – Towards a Global Electricity Market

06/2010

Selected for the Global Economic Symposium 2010

In principle, solar and wind are more than enough to deliver any amount of energy mankind might want to demand. However, these sources are usually best exploitable in areas that are far from demand centres: It is technologically challenging to transport electricity over large distances and even more to store it; as a consequence electricity markets have developed as regional markets. To change this, proposals have been made recently to generate electricity e.g., by large-scale solar thermal power plants in North Africa and transport it through high voltage direct current power lines to the demand centres in Europe.

Projections claim that by 2050, 700 TWh electricity per year—this matches a rough quarter of the European electricity demand in 2006—can be transmitted, raising yearly revenues of 35 bn EUR. In addition, other world regions aim for an integration of regional power grids and sources: In January 2010, several European governments littoral to the North Sea announced to connect their production of wind energy. Yet, projections show that in the midterm the future energy mix for electricity generation will still contain fossil energy and nuclear power.

The share of the fossil energy in the future energy mix strongly depends on the implementation of low-carbon technologies like carbon capture and storage (CCS) and the ability to substitute lowcarbon for high-carbon energy sources. Nuclear power will also constitute an important option due to its provision of emission free power.

However, since there are unsolved major caveats of nuclear power, an expansion of the nuclear power share is not the complete answer to the energy puzzle:

• What are the options and their potential contributions to the future energy mix for electricity generation?
• What proportion of our energy needs will still have to be covered by fossil energy like gas, coal and nuclear power?
• How can the supply in regions that lack those energy sources be secured?
• What is the appropriate time frame for implementation in order to avert serious consequences of climate change?
• What is the politically feasible mix?
• What are the business challenges for energy companies in this changing environment?
• Are large scale projects for electricity generation a sensible strategy for large international energy companies to prepare for a carbon-free future?
• Or is the installation of decentralized small-scale systems the more efficient solution?
• Will it be possible to combine the two approaches? Or are they conflicting?
• How could a secure functioning of a global electricity market be guaranteed—especially if potentially instable states are involved?
• Will importing countries be willing to pay the price of a security loss for carbon free energy?

Literature selected from our database ECONIS:

• Article: Changing paradigms in electric energy systems / Maria Ilic and Mariann Jelinek
  In: The governance of network industries. - Cheltenham [u.a.]: Elgar, ISBN 978-1-8472-0117-1. - 2009, S. 134-163
  Subject heading: Utilities industry / Infrastructure policy / Electric Utility Industry / Deregulation / World
• Article: Creating institutional arrangements that make markets work: the case of retail markets in the electricity sector / Jean-Michel Glachant
  In: The governance of network industries. - Cheltenham [u.a.]: Elgar, ISBN 978-1-8472-0117-1. - 2009, S. 46-60
  Subject heading: Utilities industry / Infrastructure policy / Institutional infrastructure / Retail Trade / Electric Utility Industry / World
• Title: International handbook on the economics of energy / ed. by Joanne Evans ...
  Published: Cheltenham [u.a.]: Elgar, 2009
  Subject heading: Energy Economics / Power Industry / Energy Policy / Energy consumption / Energy saving / Climate change / Environmental protection / Petroleum / Natural gas / Electricity / Coal / World / 1800-2008
  Link: Table of contents
• Article: Optimal expansion of the power transmission grid: why not? / Thomas-Olivier Léautier; Véronique Thelen
  In: Journal of regulatory economics. - Norwell, Mass. [u.a.]: Springer, ISSN 0922-680X, ZDB-ID 10271739. - Bd. 36.2009, 2, S. 127-153
  Subject heading: Electricity grid / Incentive regulation / Bottleneck / United States / World
• Article: Energy demand forecasts and climate policy agenda: a sustainable energy mix needs to be clean, clever and competitive / Claudia Kemfert
  In: Trends and issues in global tourism . - Berlin: Springer, ISSN 1868-0127, ZDB-ID 24599591 ITB: Trends and issues in global tourism 2010. - Berlin: Springer, ISBN 3-642-10828-8. - 2010, S. 47-54
  Subject heading: Energy forecast / Sustainable energy policy / Climate protection / World
• Title: Power markets and economics: structure, costs, operation / Barrie Murray
  Published: Chichester, West Sussex: Wiley, 2009
  Subject heading: Electricity / Market / Electric Utility Industry / Power plant / Electricity grid / World
  Link: Table of contents
• Article: An integrated approach to energy prospects for North America and the rest of the world / Andrea M. Bassi; Robert Powers; William Schoenberg
  In: Energy economics. - Amsterdam: Elsevier, ISSN 0140-9883, ZDB-ID 795279x. - Bd. 32.2010, 1, S. 30-42
  Subject heading: Energy Policy / Energy forecast / North America / World / 1980-2050
• Article: Competitive electricity markets: questions remain about design, implementation, performance / Fereidoon P. Sioshansi
  In: The electricity journal. - Congers, NY: Elsevier Science - Camby and West, ISSN 1040-6190, ZDB-ID 11136819. - Bd. 21.2008, 2, S. 74-87
  Subject heading: Electric Utility Industry / Electricity policy / Reform / Deregulation / Market structure / World
• Title: The grand energy transition: the rise of energy gases, sustainable life and growth, and the next great economic expansion / Robert A. Hefner III
  Published: Hoboken, NJ: Wiley, 2009
  Subject heading: Renewable energy / Energy Policy / Renewable energy policy / United States / World
  Links:
  Table of contents
  http://www.loc.gov/catdir/enhancements/fy0913/2009023129-d.html
  http://www.loc.gov/catdir/enhancements/fy0913/2009023129-t.html
  http://www.loc.gov/catdir/enhancements/fy0914/2009023129-b.html
• Title: Global energy transformation: four necessary steps to make clean energy the next success story / Mats Larsson
  Published: Basingstoke, Hampshire [u.a.]: Palgrave Macmillan, 2009
  Subject heading: Sustainable energy policy / Renewable energy / Renewable energy policy / Economic change / World
  Link: Table of contents
• Title: Future energy: improved, sustainable and clean options for our planet / ed. by Trevor M. Letcher
  Published: Amsterdam [u.a.]: Elsevier, c2008
  Subject heading: Fossil fuel / Renewable energy / Choice of technology / Natural resources / World
  Link: Table of contents
• Article: The prospects for electricity and transport fuels to 2050 / Geoff Dutton and Matthew Page
  In: Future energy. - Amsterdam [u.a.]: Elsevier, ISBN 0-08-054808-3. - 2008, S. 347-370
  Subject heading: Energy supply / Electricity / Motor fuel / Energy Policy / Estimation / World / 2002-2050
• Article: Worshipping Helios: solar plants offer large scale electricity production / David Jones
  In: Energy economist. - London, ISSN 0262-7108, ZDB-ID 11114605. - Bd. 310.2007, S. 10-13
  Subject heading: Solar energy / Solar power plant / Electrical power engineering / Solar energy policy / World
• Title: Global energy and environmental scenarios: implications for development policy / Dirk Willenbockel
  Published: Bonn: Dt. Inst. für Entwicklungspolitik, 2009
  Subject heading: Energy forecast / Climate change / Sustainable energy policy / Global governance / Development cooperation / World / Developing countries
  Link: Table of contents
• Article: Projections of fossil energy reserves and supply until 2050 (2100): implications for longer-term energy supply security / Werner Zittel and Joerg Schindler
  In: Facing global environmental change. - Berlin [u. a.]: Springer, ISBN 978-3-540-68487-9. - 2009, S. 365-377
  Subject heading: Fossil fuel / Energy forecast / Renewable energy / Sustainable development / World / 1900-2100
• Article: Scenarios of energy demand and supply until 2100: implications for energy security / Leo Schrattenholzer
  In: Facing global environmental change. - Berlin [u. a.]: Springer, ISBN 978-3-540-68487-9. - 2009, S. 355-364
  Subject heading: Energy supply / Energy forecast / Sustainable energy policy / Sustainable development / Climate protection / World / 1990-2100
• Article: Energy scenarios: toward a new energy paradigm / Tessaleno Devezas; David LePoire; João C. O. Matias; Abílio M. P. Silva
  In: Futures. - Amsterdam: Elsevier, ISSN 0016-3287, ZDB-ID 21386. - Bd. 40.2008, 1, S. 1-16
  Subject heading: Primary energy / Energy consumption / Energy substitution / Energy forecast / Scenario analysis / World / 1850-2050
• Article: Climate-change mitigation from renewable energy: its contribution and cost / Richard Green
  In: The economics and politics of climate change. - Oxford [u.a.]: Oxford Univ. Press, ISBN 978-0-19-957328-8. - 2009, S. 284-301
  Subject heading: Climate change / Environmental policy / Renewable energy / Biofuel / Geothermal energy / Wind energy / Solar energy / International environmental agreement / Forecast / World
• Article: Solar energy on a global scale: its impact on security / David Faiman
  In: Facing global environmental change. - Berlin [u. a.]: Springer, ISBN 978-3-540-68487-9. - 2009, S. 395-410
  Subject heading: Solar energy / Energy supply / World / 1992-2004
• Title: Energy portfolios / eds. U. Aswathanarayana; Rao S. Divi
  Published: Boca Raton, Fla. [u.a.]: CRC Press, c 2009
  Subject heading: Energy technology / Power Industry / Energy supply / Energy / Environmental Degradation / Climate change / World
  Link: Table of contents
• Title: Energy demand and climate change: issues and resolutions / Franklin Hadley Cocks
  Published: Weinheim: Wiley-VCH, 2009
  Subject heading: Climate change / Energy consumption / Climate protection / Renewable energy / World
  Link: Table of contents
• Article: Concentrating solar power / Robert Pitz-Paal
  In: Future energy. - Amsterdam [u.a.]: Elsevier, ISBN 0-08-054808-3. - 2008, S. 171-192
  Subject heading: Solar energy / Solar power plant / World
• Title: Biofuels, solar and wind as renewable energy systems: benefits and risks / David Pimentel (ed.)
  Published: [Dordrecht]: Springer, 2008
  Subject heading: Renewable energy / Energy technology / Biofuel / Solar energy / Bioenergy / Wind energy / Sustainable energy policy / World
  Link: Table of contents
• Title: Energy security: re-measuring the world / Sascha Müller-Kraenner
  Author: Müller-Kraenner, Sascha
  Published: London [u.a.]: Earthscan, 2008
  Subject heading: Energy supply / Energy Policy / World
  Link: Table of contents
• Title: Energy supply and renewable resources / Regina Anne Kelly
  Author: Kelly, Regina Anne
  Published: New York, NY: Facts On File, c 2007
  Subject heading: Energy supply / Renewable resources / World
  Links:
  Table of contents
  Table of contents
• Article: Renewable energy futures: targets, scenarios and pathways / Eric Martinot, Carmen Dienst, Liu Weiliang, and Chai Qimin
  In: Annual review of environment and resources. - Palo Alto, Calif.: Annual Reviews Inc., ISSN 1543-5938, ZDB-ID 21311675. - Bd. 32.2007, S. 205-239
  Subject heading: Renewable energy / Energy forecast / World
• Article: Nuclear energy / Malcolm Grimston
  In: The new energy paradigm. - Oxford [u.a.]: Oxford Univ. Press, ISBN 0-19-922970-8. - 2007, S. 372-410
  Subject heading: Energy Policy / Power Industry / Nuclear Energy / Electricity / Forecast / United Kingdom / World / 1955-2027
• Title: Global electrification: multinational enterprise and international finance in the history of light and power, 1878 - 2007 / William J. Hausman; Peter Hertner; Mira Wilkins
  Published: Cambridge [u.a.]: Cambridge Univ. Press, 2008
  Subject heading: Electric Utility Industry / Electricity policy / History / Electrical power engineering / Transnational corporation / World / 1878-2007
  Links:
  Contributor biographical information
  Publisher description
  Table of contents