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Policy changes and the dynamics of capacity expansion in the Swiss electricity market

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  • Ochoa, Patricia
  • van Ackere, Ann

Abstract

Capacity of supply is a crucial matter in electricity markets as it directly influences reliability of supply, price volatility and blackout risk. In this paper, we analyse the dynamics of capacity expansion in the Swiss electricity market and the impact of different policies such as nuclear phaseout and management of electricity exchanges - imports and exports - policies. This article develops the conceptualization model presented in [Ochoa, P., 2007b. Policy changes in the Swiss electricity market: a system dynamics analysis of likely market responses. Socio-Economic Planning Sciences 41 (4):336-349.]. We build a system dynamics model based on the dynamics of capacity expansion explained in the latter paper and present and analyse different scenarios. We conclude that international electricity exchanges are important for the Swiss market as they help to lower costs and to increase the income of the utility companies; however, we illustrate the need for explicit policies for managing imports and exports of electricity to avoid import dependence from neighbouring countries.

Suggested Citation

  • Ochoa, Patricia & van Ackere, Ann, 2009. "Policy changes and the dynamics of capacity expansion in the Swiss electricity market," Energy Policy, Elsevier, vol. 37(5), pages 1983-1998, May.
  • Handle: RePEc:eee:enepol:v:37:y:2009:i:5:p:1983-1998
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    References listed on IDEAS

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    Cited by:

    1. Ochoa, Camila & van Ackere, Ann, 2015. "Does size matter? Simulating electricity market coupling between Colombia and Ecuador," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 1108-1124.
    2. Ochoa, Camila & Gore, Olga, 2015. "The Finnish power market: Are imports from Russia low-cost?," Energy Policy, Elsevier, vol. 80(C), pages 122-132.
    3. Kannan, Ramachandran & Turton, Hal, 2012. "Cost of ad-hoc nuclear policy uncertainties in the evolution of the Swiss electricity system," Energy Policy, Elsevier, vol. 50(C), pages 391-406.
    4. Barbour, Edward & Wilson, I.A. Grant & Radcliffe, Jonathan & Ding, Yulong & Li, Yongliang, 2016. "A review of pumped hydro energy storage development in significant international electricity markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 61(C), pages 421-432.
    5. repec:eee:rensus:v:79:y:2017:i:c:p:646-655 is not listed on IDEAS
    6. Lilian de Menezes & Melanie A. Houllier, 2013. "Modelling Germany´s Energy Transition and its Potential Effect on European Electricity Spot Markets," EcoMod2013 5395, EcoMod.
    7. Pan, Lingying & Liu, Pei & Li, Zheng, 2017. "A system dynamic analysis of China’s oil supply chain: Over-capacity and energy security issues," Applied Energy, Elsevier, vol. 188(C), pages 508-520.
    8. Blumberga, Dagnija & Blumberga, Andra & Barisa, Aiga & Rosa, Marika & Lauka, Dace, 2016. "Modelling the Latvian power market to evaluate its environmental long-term performance," Applied Energy, Elsevier, vol. 162(C), pages 1593-1600.
    9. Ahmad, Salman & Mat Tahar, Razman & Muhammad-Sukki, Firdaus & Munir, Abu Bakar & Abdul Rahim, Ruzairi, 2016. "Application of system dynamics approach in electricity sector modelling: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 29-37.

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