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Electricity Market Reform in the European Union: Review of Progress toward Liberalization & Integration

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  • Tooraj Jamasb and Michael Pollitt

Abstract

The energy market liberalisation process in Europe is increasingly focused on electricity market integration and related cross border issues. This signals that the liberalisation of national electricity markets is now closer to the long-term objective of a single European energy market. The interface between the national electricity markets requires physical interconnections and technical arrangements. However, further progress towards this objective also raises important issues regarding the framework within which the integrated market is implemented. This paper reviews the progress towards a single European electricity market. We then discuss the emerging issues of market concentration, investments, and security of supply as well as some aspects of market design and regulation that are crucial for dynamic performance of a single European market.

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Bibliographic Info

Article provided by International Association for Energy Economics in its journal The Energy Journal.

Volume (Year): Volume 26 (2005)
Issue (Month): Special Issue ()
Pages: 11-42

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Handle: RePEc:aen:journl:2005se-a02

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Cited by:
  1. Jamasb, T. & Pollitt, M., 2007. "Incentive Regulation of Electricity Distribution Networks: Lessons of Experience from Britain," Cambridge Working Papers in Economics 0709, Faculty of Economics, University of Cambridge.
  2. Machiel Mulder & Victoria Shestalova & Mark Lijesen, 2005. "Vertical separation of the energy-distribution industry; an assessment of several options for unbundling," CPB Document 84, CPB Netherlands Bureau for Economic Policy Analysis.
  3. Jan Bena & Peter Ondko & Evangelia Vourvachaki, 2011. "Productivity Gains from Services Liberalization in Europe," CERGE-EI Working Papers wp452, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  4. Green, R. & Lorenzoni, A. & Perez, Y. & Pollitt, M., 2006. "Benchmarking Electricity Liberalisation in Europe’Benchmarking Electricity Liberalisation in Europe," Cambridge Working Papers in Economics 0629, Faculty of Economics, University of Cambridge.
  5. Pollitt, Michael G., 2012. "The role of policy in energy transitions: Lessons from the energy liberalisation era," Energy Policy, Elsevier, vol. 50(C), pages 128-137.
  6. Llorca, Manuel & Orea, Luis & Pollitt, Michael, 2013. "Efficiency and Environmental Factors in the US Electricity Transmission Industry," Cambridge Working Papers in Economics 1318, Faculty of Economics, University of Cambridge.
  7. Pompei, Fabrizio, 2013. "Heterogeneous effects of regulation on the efficiency of the electricity industry across European Union countries," Energy Economics, Elsevier, vol. 40(C), pages 569-585.
  8. Ochoa, Camila & Dyner, Isaac & Franco, Carlos J., 2013. "Simulating power integration in Latin America to assess challenges, opportunities, and threats," Energy Policy, Elsevier, vol. 61(C), pages 267-273.
  9. Silvia Concettini & Anna Créti, 2013. "Liberalization of electricity retailing in Europe: coming back or going forth?," Working Papers hal-00915924, HAL.
  10. Alfredo Garcia & Ennio Stacchetti, 2011. "Investment dynamics in electricity markets," Economic Theory, Springer, vol. 46(2), pages 149-187, February.
  11. Nilsson, Mats, 2007. "Red light for Green Paper: The EU policy on energy efficiency," Energy Policy, Elsevier, vol. 35(1), pages 540-547, January.
  12. Roger Fouquet, 2012. "Economics of Energy and Climate Change: Origins, Developments and Growth," Working Papers 2012-08, BC3.
  13. Jaraitė, Jūratė & Di Maria, Corrado, 2012. "Efficiency, productivity and environmental policy: A case study of power generation in the EU," Energy Economics, Elsevier, vol. 34(5), pages 1557-1568.
  14. Erdogdu, Erkan, 2011. "The impact of power market reforms on electricity price-cost margins and cross-subsidy levels: a cross country panel data analysis," MPRA Paper 28414, University Library of Munich, Germany.
  15. Del Bo, Chiara F., 2013. "FDI spillovers at different levels of industrial and spatial aggregation: Evidence from the electricity sector," Energy Policy, Elsevier, vol. 61(C), pages 1490-1502.
  16. Mario Ibarburu, 2012. "Acuerdos de comercio internacional spot de electricidad," Documentos de Trabajo (working papers) 1912, Department of Economics - dECON.
  17. Erdogdu, Erkan, 2013. "Essays on Electricity Market Reforms: A Cross-Country Applied Approach," MPRA Paper 47139, University Library of Munich, Germany.
  18. Jacques Pelkmans & Lionel Kapff, 2010. "Interconnector Investment for a Well-functioning Internal Market. What EU regime of regulatory incentives?," Bruges European Economic Research Papers 18, European Economic Studies Department, College of Europe.

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