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Competition and the single electricity market: Which lessons for Ireland?

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  • Di Cosmo, Valeria
  • Lynch, Muireann Á.

Abstract

This paper examines the evolution of the Irish Single Electricity Market in order to comply with the European Target Model for electricity. In particular, this work focuses on the challenges raised by the high concentration in the generation sector of the Irish electricity market. We examine the theoretical and empirical conditions under which forward markets promote competition in the spot and retail markets. We also investigate the impact of market concentration on the new capacity payment mechanism. In order to ensure a competitive outcome for consumers, the regulatory authorities should promote competition in the forward market; moreover, the regulator should extend regulation to the price and quantity that the dominant firm bids for holding new reliability options.

Suggested Citation

  • Di Cosmo, Valeria & Lynch, Muireann Á., 2016. "Competition and the single electricity market: Which lessons for Ireland?," Utilities Policy, Elsevier, vol. 41(C), pages 40-47.
  • Handle: RePEc:eee:juipol:v:41:y:2016:i:c:p:40-47
    DOI: 10.1016/j.jup.2016.05.002
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    Citations

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    Cited by:

    1. Lynch, Muireann Á. & Di Cosmo, Valeria, 2015. "The Irish Electricity Market: New Regulation to Preserve Competition," Research Notes RN2015/1/1, Economic and Social Research Institute (ESRI).
    2. Slednev, Viktor & Bertsch, Valentin & Ruppert, Manuel & Fichtner, Wolf, 2017. "Highly resolved optimal renewable allocation planning in power systems under consideration of dynamic grid topology," MPRA Paper 79706, University Library of Munich, Germany.
    3. Di Cosmo, Valeria & Lynch, Muireann Á., 2016. "Competition and the single electricity market: Which lessons for Ireland?," Utilities Policy, Elsevier, vol. 41(C), pages 40-47.
    4. Bublitz, Andreas & Keles, Dogan & Zimmermann, Florian & Fraunholz, Christoph & Fichtner, Wolf, 2018. "A survey on electricity market design: Insights from theory and real-world implementations of capacity remuneration mechanisms," Working Paper Series in Production and Energy 27, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    5. Lynch, Muireann A, 2017. "Re-evaluating Irish energy policy in light of brexit," Research Notes RN20170201, Economic and Social Research Institute (ESRI).
    6. repec:esr:forcas:qec20172 is not listed on IDEAS
    7. Valeria Di Cosmo & Sean Collins & Paul Deane, 2017. "The Effect of Increased Transmission and Storage in an Interconnected Europe: an Application to France and Ireland," Working Papers 2017.37, Fondazione Eni Enrico Mattei.

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