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Working Paper

Providing efficient network access to green power generators: A long-term property rights perspective

This paper analyses the dynamic efficiency of several types of access regulation of a bottleneck transmission line in electricity markets.

By: and Date: November 2, 2016 Topic: Energy & Climate

Coordinating the timing and location of new production facilities is one of the challenges of liberalized power sectors. It is complicated by the presence of transmission bottlenecks, oligopolistic competition, and the unknown prospects of low-carbon technologies.

The authors build a model encompassing a late and early investment stage, a clean (green) and dirty (brown) technologies, and a single transmission bottleneck and compare dynamic efficiency of several market designs.

Allocating network access on a short-term competitive basis distorts investment decisions as brown firms will pre-empt green competitors by investing early. Compensating early investors for future network congestion, as for instance in the E.U., only exacerbates this problem.

Dynamic efficiency is restored with long-term transmission rights that can be traded on a secondary market (iusvendendi). As early investment lowers the resale value of the transmission rights, brown firms will invest optimally.

The authors show that dynamic efficiency does not require the existence of physical rights for accessing the transmission line (ius utendi), but financial rights on receiving the scarcity revenues generated by the transmission line (ius fructendi) suffice.

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External Publication

The impact of the global energy transition on MENA oil and gas producers

Endowed with half of the world's known oil and gas reserves, the Middle East and North Africa (MENA) region is cornerstone of the global energy architecture. This article argues that – together with the pressing need to create jobs opportunities for a large and youthful population – the possibility of the world moving more aggressively towards a low-carbon future should represent a key argument for the implementation of economic reform programmes.

By: Simone Tagliapietra Topic: Energy & Climate Date: August 5, 2019
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Podcast

Podcast

Deep Focus: Energy transition in the next EU institutional cycle

Bruegel fellow Simone Tagliapietra speaks to Sean Gibson in this instalment of 'The Sound of Economics', on the matter of the European energy transition and how the EU should proceed in the new institutional cycle.

By: The Sound of Economics Topic: Energy & Climate Date: July 10, 2019
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Opinion

Faut-il s’endetter pour le climat?

Jean Pisani-Ferry, soutient qu’il ne faut pas s’interdire de financer une partie du coût de la transition écologique par l’endettement.

By: Jean Pisani-Ferry Topic: Energy & Climate Date: July 2, 2019
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Past Event

Past Event

Brussels Policy Dialogue: Insights for EU and Member States’ Climate Agenda

The event is a policy dialogue organised under the project, 'COP21: Results and Implications for Pathways and Policies for Low Emissions European Societies'.

Speakers: Petya Icheva, David Morales, Artur Runge-Metzger, Oliver Sartor, Marta Torres-Gunfaus, Vincent Van Steenberghe and Georg Zachmann Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: June 7, 2019
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Past Event

Past Event

How do national energy policies fit into EU decarbonisation plans?

Through considering several different national perspectives, we discuss how to reconcile the EU Climate Strategy targets with national energy and climate policies.

Speakers: Aleksandra Gawlikowska-Fyk, Christian von Hirschhausen, Carole Mathieu and Georg Zachmann Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: May 15, 2019
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Working Paper

Estimating the cost of capital for wind energy investments in Turkey

Wind power represents a key component of Turkey’s national energy strategy. Based on data collected on 138 installations in the country, this paper provides an estimation of wind power’s cost of capital in Turkey. This analysis finds that the cost of capital for wind power in Turkey compares with the one of South-east European countries. On this basis, continued governmental commitment to current support schemes for wind power must be considered as crucial to further promote wind power deployment in the country, even if the recent devaluation of the Turkish lira raises the feed-in-tariffs cost for the government.

By: Gustav Fredriksson, Simone Tagliapietra and Georg Zachmann Topic: Energy & Climate Date: May 7, 2019
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Past Event

Past Event

A new climate strategy for the EU

At a pivotal point in time, three major EU sides come together to discuss the future climate strategy.

Speakers: Silke Karcher, Andrei Marcu, Raffaele Mauro Petriccione, Kathleen Van Brempt and Georg Zachmann Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: March 19, 2019
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Podcast

Podcast

Backstage: The next decade of European energy transition

This episode of 'The Sound of Economics' features Bruegel research fellow Simone Tagliapietra in conversation with Sir Philip Lowe and Alberto Pototschnig about the progress of the European energy transition as we prepare to enter the third decade of the 21st century.

By: The Sound of Economics Topic: Energy & Climate, European Macroeconomics & Governance Date: February 26, 2019
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Past Event

Past Event

The European Energy Transition: A year ahead of the Twenties

This event will look at the most important issues related to energy for the next few years. The event will coincide with the launch of a book and online course on this topic.

Speakers: Klaus-Dieter Borchardt, Dirk Buschle, Alicia Carrasco, Olivier Corradi, Jos Delbeke, Rémy Garaude-Verdier, Dolf Gielen, Jean-Michel Glachant, Pascal Lamy, Philip Lowe, Susanne Nies, Alberto Pototschnig, Laurent Schmitt and Georg Zachmann Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: February 19, 2019
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Blog Post

How the EU could transform the energy market: The case for a euro crude-oil benchmark

There is a strong case for an oil benchmark in euros. Trading energy markets in more than one currency is not unprecedented, and indeed used to be the norm. Europe – with its powerful currency and reliable regulatory environment – should stand a good chance of success.

By: Elina Ribakova Topic: Energy & Climate Date: February 13, 2019
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Past Event

Past Event

EU-Turkey energy and climate dialogues 2019

What is the cost of capital for wind energy investments in Turkey?

Speakers: Massimo d`Eufemia, Gustav Fredriksson, Can Hakyemez, Pelin Oğuz, Canan Ozsoy, James Rizzo, Umit Sahin, Simone Tagliapietra and Mehmet Erdem Yasar Topic: Energy & Climate Location: Istanbul Policy Center, Bereketzade Mahallesi, Bankalar Cd. No:2, 34421 Beyoğlu/İstanbul, Turkey Date: January 17, 2019
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Opinion

The UN climate conference in Katowice: A message from the European capital of coal

Following the COP24 climate talks in Poland, Simone Tagliapietra reviews the arguments for and challenges to decarbonisation.

By: Simone Tagliapietra Topic: Energy & Climate, Global Economics & Governance Date: December 12, 2018
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