EU gas and electricity prices have increased rapidly over the last few months and reached unprecedented levels. While the recent energy price dynamics reflect current market conditions and have little to do with the future energy transition, they provide an opportunity to reflect on the most appropriate electricity market design to support this transition. As a reaction to the recent price surges, calls have been made by different stakeholders, including some national governments, to introduce changes in the electricity market design. Some of these proposals could be interpreted as calling for the 'pay-as-cleared' pricing approach in the wholesale day-ahead electricity market to be replaced by some version of the 'pay-as-bid' method. This Policy Brief also assesses how consumers could be protected from the impact of wholesale price volatility on their energy bills and how best to protect vulnerable consumers from higher energy prices without depriving them of the opportunity to participate in electricity markets to offer their valuable flexibility, and which instruments can best ensure resource adequacy in the context of the future energy transition.

Electricity Pricing In Transition is written to address the new issues facing utilities, retailers, regulators, and customers in the changing electricity market. It is organized into five sections. Section I deals with the new restructured organization that has emerged from yesterday's vertically integrated, regulated monopoly company. Section II deals with issues in competitive pricing. Section III reviews the role of demand response and product design in today's chaotic marketplace. Given the single importance of California's energy crisis and the fact that it will be studied for years to come, Section IV is devoted to studying the lessons learned from this crisis. The final section of the book deals with markets and regulations. This book will provide practitioners with guidance on how to avoid the major pitfalls in pricing electricity while the market is in transition by drawing upon the insights and lessons learned from the experience of others that are documented in this book.

As discussed in this text, countries with excess energy resources export these to countries that need them. This is an important function of the global energy markets, where energy sources, products and services are traded among countries and companies. While this is the primary activity in energy markets, it is only part of the entire global energy market scheme. The goal of this text is to analyze all sides of the energy markets in their physical, technological, economic, political, regulatory, environmental, financial, and legal aspects.

The challenges facing participants in competitive electricity markets are staggering: high price volatility introduces significant financial risk into an industry accustomed to guaranteed rates of return, while illiquid forward markets prevent effective hedging strategies from being implemented. Valuation, Hedging and Speculation in Competitive Electricity Markets: A Fundamental Approach , examines the unique properties which separate electricity from other traded commodities, including the lack of economical storage, and the impact of a scarce transmission network. The authors trace the sources of uncertainties in the price of electricity to underlying physical and economic processes, and incorporate these into a bid-based model for electricity spot and forward prices. They also illustrate how insufficient market data can be circumvented by using a combination of price and load data in the marking- to-market process. The model is applied to three classes of problems central to the operation of any electric utility or power marketer; valuing generation assets, formulating dynamic hedging strategies for load serving obligations, and pricing transmission contracts and locational spread options. Emphasis is placed on the difference between trades which can be 'booked out' in the forward markets, and those which must be carried through to delivery. Lately, significant attention has been given to the role of regulators in mitigating excessive price levels in electricity markets. The authors conduct a quantitative analysis of the long-term effects of regulatory intervention through the use of price caps. By modeling the dynamic interplay between the observed price levels and the decision to invest in new generation assets, it is shown how such short term fixes can lead to long term deficits in the available generation capacity, and ultimately to market failures and blackouts.

The Future of Energy 2021 Edition - The guide to sustainability, renewable energy, climate change and the energy transition. The 'Future of Energy' is written to be accessible for anyone interested in learning more about energy. Substantially updated in 2021 to reflect the impact of Covid-19 on the world of energy, the book takes the reader through a future for energy generation, transportation, and utilisation. Concise and comprehensive, the book brings together discussion on energy and thoughts on the range of topics which form the fulcrum of the challenges ahead of us including climate change, hydrogen, heat, sustainability, and renewable energy. Written to spark ideas, discussion and debate the 'Future of Energy' engages the reader in the future challenges and opportunities of this hugely exciting and important field. Background There exists a huge range of information on the 'energy transition' with competing technologies and theories vying for supremacy. It is easy to fall into the trap of believing there is an easy answer or 'silver bullet' to the huge challenges we face. It is substantially more complicated with an inevitable patchwork of future technologies, rather than a single simple solution. There is no perfect answer to the challenges we face but most will in some way shape the way we use energy through the next decade and beyond. About the author John Armstrong is an engineer whose career has spanned the extremes of the energy industry - giving him a front-row seat on the energy roller-coaster. He began his career constructing oil refineries before moving to work across fossil and renewable electricity generation. John lives in Bath in the United Kingdom with his wife and two children. Reviews for the 'Future of Energy' books by John Armstrong Concise while being comprehensive. Thorough but with a bit of a personal perspective that makes it interesting. Realistic about the challenges but with a dose of optimism about what could be done. Well-informed but accessible. David Elmes, Professor, Warwick Business School, Sept 2020. I would highly recommend this book to anybody working within energy or interested in learning more about the movement towards clean energy. I'd been looking for a book like this for years but couldn't find anything that wasn't a chunky textbook. Amazon Review, August 2020 A very good guide to the challenges the energy industry faces today. I will be recommending it to all my team to get up to speed with the industry - incredibly accessible in how the ideas are laid out. Seb, Energy Conference Producer, May 2020 This should be mandatory reading for future undergraduates and graduates as part of our induction process. Darren, Senior Energy Manager, May 2020 The author manages to present a complex topic in an engaging and authoritative way. Andrew, May 2020

The world is currently undergoing an historic energy transition, driven by increasingly stringent decarbonisation policies and rapid advances in low-carbon technologies. The large-scale shift to low-carbon energy is disrupting the global energy system, impacting whole economies, and changing the political dynamics within and between countries. This open access book, written by leading energy scholars, examines the economic and geopolitical implications of the global energy transition, from both regional and thematic perspectives. The first part of the book addresses the geopolitical implications in the world’s main energy-producing and energy-consuming regions, while the second presents in-depth case studies on selected issues, ranging from the geopolitics of renewable energy, to the mineral foundations of the global energy transformation, to governance issues in connection with the changing global energy order. Given its scope, the book will appeal to researchers in energy, climate change and international relations, as well as to professionals working in the energy industry.

Organized electricity markets in the United States today face growing regulatory, policy, and commercial pressures stemming from the decarbonization of the power and transportation systems.