Pub Date : 2026-04-01Epub Date: 2025-12-03DOI: 10.1016/j.jup.2025.102119
Ramith Wimalaratna, Alexandr Akimov, Shyama Ratnasiri
This study estimates the total cost of ownership of corporate battery-electric vehicles (BEVs) in Australia across a range of charging scenarios. It finds that time-varying tariffs have the potential to drive down the costs of vehicle ownership if charging is done at a time when greener and (often) cheaper electricity is available. The degree of benefit varies with several key parameters and operational characteristics, so efficient charging requires careful planning. With the right incentives and infrastructure in place, BEV fleets can serve as a valuable resource for load flexibility for grid operators.
{"title":"Corporate transitioning to electric vehicle fleets: charging tariffs, total cost of ownership, and the potential for load flexibility","authors":"Ramith Wimalaratna, Alexandr Akimov, Shyama Ratnasiri","doi":"10.1016/j.jup.2025.102119","DOIUrl":"10.1016/j.jup.2025.102119","url":null,"abstract":"<div><div>This study estimates the total cost of ownership of corporate battery-electric vehicles (BEVs) in Australia across a range of charging scenarios. It finds that time-varying tariffs have the potential to drive down the costs of vehicle ownership if charging is done at a time when greener and (often) cheaper electricity is available. The degree of benefit varies with several key parameters and operational characteristics, so efficient charging requires careful planning. With the right incentives and infrastructure in place, BEV fleets can serve as a valuable resource for load flexibility for grid operators.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102119"},"PeriodicalIF":4.4,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145692669","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Thailand is transitioning from a monopolistic electricity sector toward a more competitive market to improve efficiency, ensure fair cost allocation, and support national greenhouse gas reduction targets. This shift has accelerated the integration of renewable energy technologies at the distribution level and the adoption of policies such as Direct Power Purchase Agreements (Direct PPAs), Third Party Access (TPA), and Renewable Energy Communities (RECs). However, high penetration of variable renewable energy introduces supply uncertainty and operational complexity, posing challenges to grid stability. In the absence of a wholesale electricity market, Thailand must restructure its electricity system with a focus on distribution-level dynamics, where most new participants are connected. This paper examines key aspects of electricity market restructuring in Thailand, including the unbundling of regulated and non-regulated businesses, market design, balancing and settlement mechanisms, cost-reflective tariffs with equity considerations, and the creation of neutral market facilitation platforms. It proposes a system architecture tailored to emerging technologies and actors, addressing technical constraints and institutional realities. Drawing on international experience while reflecting domestic conditions, the study offers policy recommendations for a more inclusive, flexible, and sustainable electricity market. Its findings aim to guide Thailand's reform agenda and inform broader transition strategies in similar developing country contexts.
{"title":"Electricity market restructuring in Thailand: Challenges and emerging policies","authors":"Paphangkon Thainthadaphat , Nopbhorn Leeprechanon , Tirapot Chandarasupsang , Annop Tananchana","doi":"10.1016/j.jup.2025.102141","DOIUrl":"10.1016/j.jup.2025.102141","url":null,"abstract":"<div><div>Thailand is transitioning from a monopolistic electricity sector toward a more competitive market to improve efficiency, ensure fair cost allocation, and support national greenhouse gas reduction targets. This shift has accelerated the integration of renewable energy technologies at the distribution level and the adoption of policies such as Direct Power Purchase Agreements (Direct PPAs), Third Party Access (TPA), and Renewable Energy Communities (RECs). However, high penetration of variable renewable energy introduces supply uncertainty and operational complexity, posing challenges to grid stability. In the absence of a wholesale electricity market, Thailand must restructure its electricity system with a focus on distribution-level dynamics, where most new participants are connected. This paper examines key aspects of electricity market restructuring in Thailand, including the unbundling of regulated and non-regulated businesses, market design, balancing and settlement mechanisms, cost-reflective tariffs with equity considerations, and the creation of neutral market facilitation platforms. It proposes a system architecture tailored to emerging technologies and actors, addressing technical constraints and institutional realities. Drawing on international experience while reflecting domestic conditions, the study offers policy recommendations for a more inclusive, flexible, and sustainable electricity market. Its findings aim to guide Thailand's reform agenda and inform broader transition strategies in similar developing country contexts.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102141"},"PeriodicalIF":4.4,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145925432","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2025-12-24DOI: 10.1016/j.jup.2025.102140
Antonios Katris, Anas Karkoutli, Karen Turner
In 2024, the UK Government introduced a statutory ‘Growth Duty’ on the energy industry regulator Ofgem. One implication is that industry actors must explain how proposed investments might enable sustainable economic growth processes when submitting their business plans as part of the regulated energy price control system. The first instance of this requirement affected the three GB electricity transmission owners (TOs) when submitting business plans in late 2024 for the RIIO-T3 period, which will run from April 2026 through to March 2031. This paper reports results and insights from independent research drawing on the investment plans of one of the three TOs in a set of economy-wide scenario simulations using a dynamic computable general equilibrium (CGE) model of the UK economy. A central finding is that our results indicate that undertaking early, planned investment at pace in anticipation of projected rising electricity demand, in response to the UK Government's electrification policies, is likely to deliver substantially stronger GDP and employment outcomes than a reactionary investment approach. This outcome is due to both an increased scale of earlier investment and the early creation of some excess capacity, which introduces downward marginal pressure on electricity bills. Moreover, where the latter is sufficient to offset the user bill impacts of investment cost recovery, the net outcome for UK households becomes progressive. The commonly expected outcome of cost recovery through energy bills being regressive does, however, manifest if electricity prices do not adjust in a competitive manner.
{"title":"The sustainable economic growth implications of expanding the electricity network: can early investment reduce consumer costs and support greater GDP and jobs gains?","authors":"Antonios Katris, Anas Karkoutli, Karen Turner","doi":"10.1016/j.jup.2025.102140","DOIUrl":"10.1016/j.jup.2025.102140","url":null,"abstract":"<div><div>In 2024, the UK Government introduced a statutory ‘Growth Duty’ on the energy industry regulator Ofgem. One implication is that industry actors must explain how proposed investments might enable sustainable economic growth processes when submitting their business plans as part of the regulated energy price control system. The first instance of this requirement affected the three GB electricity transmission owners (TOs) when submitting business plans in late 2024 for the RIIO-T3 period, which will run from April 2026 through to March 2031. This paper reports results and insights from independent research drawing on the investment plans of one of the three TOs in a set of economy-wide scenario simulations using a dynamic computable general equilibrium (CGE) model of the UK economy. A central finding is that our results indicate that undertaking early, planned investment at pace in anticipation of projected rising electricity demand, in response to the UK Government's electrification policies, is likely to deliver substantially stronger GDP and employment outcomes than a reactionary investment approach. This outcome is due to both an increased scale of earlier investment and the early creation of some excess capacity, which introduces downward marginal pressure on electricity bills. Moreover, where the latter is sufficient to offset the user bill impacts of investment cost recovery, the net outcome for UK households becomes progressive. The commonly expected outcome of cost recovery through energy bills being regressive does, however, manifest if electricity prices do not adjust in a competitive manner.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102140"},"PeriodicalIF":4.4,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145840705","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2025-12-27DOI: 10.1016/j.jup.2025.102134
Junjin Wang, Kangrui Xu
This paper explores the interaction between homogeneous service competition and cooperation in the context of horizontal integration among regional ports. A three-stage non-cooperative game model is proposed to systematically examine this intricate relationship. The results indicate that regional port integration reduces port service fees and freight rates while simultaneously increasing freight volumes. Notably, the reduction in port service fees achieved through collective integration effort may not substantially exceed that achieved by a single port, because in the early stage of regional port integration, the strong competition effect often outweighs the relatively weak synergy effect. The relative dominance of the competition effect over the synergy effect impacts both the stability of the system equilibrium and the conflict between individual optimization and system objectives. When the competition effect surpasses the synergy effect, the integration effort resembles the Prisoner's Dilemma, leading to a lose-lose outcome. Conversely, when the synergy effect outweighs the competition effect, the integration effort reaches a Pareto optimum, resulting in a mutually beneficial win-win outcome. Furthermore, the stronger regional port consistently exhibits economies of scale and dominates the social welfare, while the weaker port may need to actively engage in integration effort, depending on the disparity in port capabilities.
{"title":"Competition and synergy effects of the horizontal integration for regional ports","authors":"Junjin Wang, Kangrui Xu","doi":"10.1016/j.jup.2025.102134","DOIUrl":"10.1016/j.jup.2025.102134","url":null,"abstract":"<div><div>This paper explores the interaction between homogeneous service competition and cooperation in the context of horizontal integration among regional ports. A three-stage non-cooperative game model is proposed to systematically examine this intricate relationship. The results indicate that regional port integration reduces port service fees and freight rates while simultaneously increasing freight volumes. Notably, the reduction in port service fees achieved through collective integration effort may not substantially exceed that achieved by a single port, because in the early stage of regional port integration, the strong competition effect often outweighs the relatively weak synergy effect. The relative dominance of the competition effect over the synergy effect impacts both the stability of the system equilibrium and the conflict between individual optimization and system objectives. When the competition effect surpasses the synergy effect, the integration effort resembles the Prisoner's Dilemma, leading to a lose-lose outcome. Conversely, when the synergy effect outweighs the competition effect, the integration effort reaches a Pareto optimum, resulting in a mutually beneficial win-win outcome. Furthermore, the stronger regional port consistently exhibits economies of scale and dominates the social welfare, while the weaker port may need to actively engage in integration effort, depending on the disparity in port capabilities.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102134"},"PeriodicalIF":4.4,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145840702","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2025-12-21DOI: 10.1016/j.jup.2025.102028
César Y. Acevedo-Arenas , Julian E. Guerrero-Macias , Yecid A. Muñoz-Maldonado , Johan S. Amado-Alvarado , Johann F. Petit-Suárez
Achieving universal electricity access in rural areas remains a complex challenge in many developing countries, particularly for communities located within reach of existing distribution infrastructure but not yet connected. In such contexts, decision-makers must often choose between extending the main grid and deploying off-grid systems. This study presents a structured scoping review based on bibliographic sources, aimed at identifying how decision-making processes are supported in selection of rural electrificationstrategies, when both options are technically and economically viable.
Following the PRISMA-ScR guidelines, a multi-phase filtering strategy was applied to the Scopus database, covering literature published between 2013 and 2024. A total of 3780 documents were initially retrieved, from which 136 were selected for in-depth analysis. Data extraction, co-citation mapping, keyword clustering, and thematic coding were used to classify the literature into five decision-related domains: technology selection, network configuration, system optimisation, policy frameworks, and multi-criteria methodologies. The review identifies recurring methodological patterns and systematises the decision-making criteria most frequently applied in rural electrification planning. It highlights that current approaches often treat grid extension and off-grid alternatives within isolated frameworks, despite their coexistence in practical planning scenarios. The analysis reveals significant gaps in the integration of technical, economic, social, environmental and institutional dimensions, as well as in the use of unified indicators that enable meaningful comparisons. These findings emphasise the need for more comprehensive frameworks that reflect the complexity of electrification choices in grid-adjacent rural areas and support more consistent, evidence-based planning processes.
{"title":"Grid extension vs. off-grid systems in rural Areas: Methodologies, tools, and criteria for decision-making","authors":"César Y. Acevedo-Arenas , Julian E. Guerrero-Macias , Yecid A. Muñoz-Maldonado , Johan S. Amado-Alvarado , Johann F. Petit-Suárez","doi":"10.1016/j.jup.2025.102028","DOIUrl":"10.1016/j.jup.2025.102028","url":null,"abstract":"<div><div>Achieving universal electricity access in rural areas remains a complex challenge in many developing countries, particularly for communities located within reach of existing distribution infrastructure but not yet connected. In such contexts, decision-makers must often choose between extending the main grid and deploying off-grid systems. This study presents a structured scoping review based on bibliographic sources, aimed at identifying how decision-making processes are supported in selection of rural electrificationstrategies, when both options are technically and economically viable.</div><div>Following the PRISMA-ScR guidelines, a multi-phase filtering strategy was applied to the Scopus database, covering literature published between 2013 and 2024. A total of 3780 documents were initially retrieved, from which 136 were selected for in-depth analysis. Data extraction, co-citation mapping, keyword clustering, and thematic coding were used to classify the literature into five decision-related domains: technology selection, network configuration, system optimisation, policy frameworks, and multi-criteria methodologies. The review identifies recurring methodological patterns and systematises the decision-making criteria most frequently applied in rural electrification planning. It highlights that current approaches often treat grid extension and off-grid alternatives within isolated frameworks, despite their coexistence in practical planning scenarios. The analysis reveals significant gaps in the integration of technical, economic, social, environmental and institutional dimensions, as well as in the use of unified indicators that enable meaningful comparisons. These findings emphasise the need for more comprehensive frameworks that reflect the complexity of electrification choices in grid-adjacent rural areas and support more consistent, evidence-based planning processes.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102028"},"PeriodicalIF":4.4,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145840103","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2025-12-10DOI: 10.1016/j.jup.2025.102085
Haris Ishaq , Osamah Siddiqui , ChengJi Tseng
Replacing fossil fuels with renewable energy resources has become an imminent global objective in this era. This paper investigates the economic, social, and environmental aspects of constructing and operating the wind farm through a comprehensive social cost-benefit analysis (SCBA) to assess the project's feasibility for the local Taiwanese population. The monetary values obtained were analyzed using net present value (NPV) methodology, evaluated from both publicly funded and privately owned perspectives. Key findings reveal significant differences between the two options when social and environmental factors are incorporated. Specifically, the NPV results for the publicly funded fixed-rate version are approximately 55.48 billion NTD, while the privately owned version stands at 4.18 billion NTD. Both versions are identified as profitable and feasible projects, provided the annual discount rate remains below 10.5% and 3.2%, respectively. The sensitivity analysis highlights that NPV results are particularly susceptible to fluctuations in capital costs and electricity sales income, with a 25% decrease in the feed-in tariff rate leading to a 43% drop in NPV. This finding suggests the need for a more thorough examination of these critical elements. This study is among the first to apply a comprehensive SCBA framework to an Asian offshore wind farm project, Formosa 2, incorporating not only economic but also environmental and social dimensions. By quantifying these factors, we provide novel insights into the comparative viability of publicly funded versus privately owned models, offering a holistic evidence base to guide renewable energy policy and investment in emerging markets.
{"title":"Replacing conventional energy resources with wind: An integrated economic, environmental, and social assessment","authors":"Haris Ishaq , Osamah Siddiqui , ChengJi Tseng","doi":"10.1016/j.jup.2025.102085","DOIUrl":"10.1016/j.jup.2025.102085","url":null,"abstract":"<div><div>Replacing fossil fuels with renewable energy resources has become an imminent global objective in this era. This paper investigates the economic, social, and environmental aspects of constructing and operating the wind farm through a comprehensive social cost-benefit analysis (SCBA) to assess the project's feasibility for the local Taiwanese population. The monetary values obtained were analyzed using net present value (NPV) methodology, evaluated from both publicly funded and privately owned perspectives. Key findings reveal significant differences between the two options when social and environmental factors are incorporated. Specifically, the NPV results for the publicly funded fixed-rate version are approximately 55.48 billion NTD, while the privately owned version stands at 4.18 billion NTD. Both versions are identified as profitable and feasible projects, provided the annual discount rate remains below 10.5% and 3.2%, respectively. The sensitivity analysis highlights that NPV results are particularly susceptible to fluctuations in capital costs and electricity sales income, with a 25% decrease in the feed-in tariff rate leading to a 43% drop in NPV. This finding suggests the need for a more thorough examination of these critical elements. This study is among the first to apply a comprehensive SCBA framework to an Asian offshore wind farm project, Formosa 2, incorporating not only economic but also environmental and social dimensions. By quantifying these factors, we provide novel insights into the comparative viability of publicly funded versus privately owned models, offering a holistic evidence base to guide renewable energy policy and investment in emerging markets.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102085"},"PeriodicalIF":4.4,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145737864","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2026-01-31DOI: 10.1016/j.jup.2026.102149
Marcel Felipe Tonetto Costas , Lucas Veiga Ávila , Rosley Anholon , Rodrigo Schons Arenhart
Ensuring urban sustainability is increasingly important for cities aiming to safeguard residents’ quality of life, protect the environment, and build resilience against global challenges such as climate change and population growth. This study analyzes the environmental performance of infrastructure and basic services in cities in southern Brazil by developing a multi-criteria ranking based on indicators that reflect ABNT NBR ISO 37120:2021 technical standards. Data from official Brazilian sources compiled on the Bright Cities/2024 platform were analyzed using the Multi-Criteria Decision-Making (MCDM) method TOPSIS, with criterion weights determined by the Entropy method. The results rank Bento Gonçalves (RS) as the top-performing municipality. The indicators that most effectively differentiated municipalities were the percentage of recycled municipal solid waste, the average annual duration of power interruptions per household, and the population served by sewage collection systems. Conversely, the percentage of the population with regular solid waste collection, compliance with drinking water quality standards, and access to water supply services showed slight variation. The analysis of environmental practices in leading cities reveals a focus on integrated solid waste management, water resource conservation, and public environmental education. These policies are relevant for mitigating the impacts of rapid urbanization and industrial development, thereby promoting a more sustainable and resilient urban future.
确保城市的可持续性对于旨在保障居民生活质量、保护环境和增强应对气候变化和人口增长等全球挑战的韧性的城市来说，变得越来越重要。本研究基于反映ABNT NBR ISO 37120:2021技术标准的指标，通过制定多标准排名，分析了巴西南部城市基础设施和基本服务的环境绩效。Bright Cities/2024平台上收集的巴西官方数据使用多标准决策（MCDM）方法TOPSIS进行分析，标准权重由熵法确定。结果显示，本托贡帕拉尔维斯（RS）是表现最好的城市。最有效区分城市的指标是回收城市固体废物的百分比、每户每年平均停电时间以及污水收集系统所服务的人口。相反，定期收集固体废物、遵守饮用水质量标准和获得供水服务的人口百分比略有不同。对主要城市环境实践的分析揭示了固体废物综合管理、水资源保护和公众环境教育的重点。这些政策有助于减轻快速城市化和工业发展的影响，从而促进更具可持续性和复原力的城市未来。
{"title":"Environmental performance of infrastructure and the provision of basic services in southern Brazilian cities: A ranking based on technical standards","authors":"Marcel Felipe Tonetto Costas , Lucas Veiga Ávila , Rosley Anholon , Rodrigo Schons Arenhart","doi":"10.1016/j.jup.2026.102149","DOIUrl":"10.1016/j.jup.2026.102149","url":null,"abstract":"<div><div>Ensuring urban sustainability is increasingly important for cities aiming to safeguard residents’ quality of life, protect the environment, and build resilience against global challenges such as climate change and population growth. This study analyzes the environmental performance of infrastructure and basic services in cities in southern Brazil by developing a multi-criteria ranking based on indicators that reflect ABNT NBR ISO 37120:2021 technical standards. Data from official Brazilian sources compiled on the Bright Cities/2024 platform were analyzed using the Multi-Criteria Decision-Making (MCDM) method TOPSIS, with criterion weights determined by the Entropy method. The results rank Bento Gonçalves (RS) as the top-performing municipality. The indicators that most effectively differentiated municipalities were the percentage of recycled municipal solid waste, the average annual duration of power interruptions per household, and the population served by sewage collection systems. Conversely, the percentage of the population with regular solid waste collection, compliance with drinking water quality standards, and access to water supply services showed slight variation. The analysis of environmental practices in leading cities reveals a focus on integrated solid waste management, water resource conservation, and public environmental education. These policies are relevant for mitigating the impacts of rapid urbanization and industrial development, thereby promoting a more sustainable and resilient urban future.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102149"},"PeriodicalIF":4.4,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146188359","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2026-01-14DOI: 10.1016/j.jup.2026.102146
Yue Zhang , Xin-gang Zhao , Xiao-yu Li , Xuan Liu , Hao-yuan Liu
Carbon allowance trading by power generation enterprises, facilitated through both internal and external markets, is a crucial mechanism for harmonizing carbon allowances in accordance with trading policies. Various trading pathways significantly affect these enterprises' decisions to reduce emissions. This paper examines the carbon emission reduction decisions of participants in the Chinese power generation industry under varying carbon allowance trading pathways. The Stackelberg game model is employed to analyze the challenges faced by the power generation industry in reducing carbon emissions, which comprises larger firms with a larger installed capacity and smaller power generation companies. The research indicates that: (1) when considering external carbon trading exclusively, variations in carbon abatement cost coefficients allow the two parties to adopt substitutable roles to mitigate supply shortages in the market; (2) when internal and external carbon trading paths coexist, they can effectively buffer external market shocks and curb large profit fluctuations, and (3) carbon trading price volatility and allowance sufficiency significantly affect the economic outcomes of power firms. Carbon trading prices determine corporate profits, while the scarcity of allowances affects firms' marginal decisions more indirectly. A smaller installed capacity is more vulnerable to external price volatility and institutional constraints. (4) The adjustment of carbon allowance allocation significantly moderates the behavior of power producers. Under allowance scarcity and high abatement costs, high cost subjects take the initiative to withdraw from the market. In contrast, low-cost subjects benefit from carbon allowance trading or market pricing, resulting in the redistribution of resources and profits.
{"title":"Decision-making by power generators with alternative carbon allowance trading pathways: A case study of China","authors":"Yue Zhang , Xin-gang Zhao , Xiao-yu Li , Xuan Liu , Hao-yuan Liu","doi":"10.1016/j.jup.2026.102146","DOIUrl":"10.1016/j.jup.2026.102146","url":null,"abstract":"<div><div>Carbon allowance trading by power generation enterprises, facilitated through both internal and external markets, is a crucial mechanism for harmonizing carbon allowances in accordance with trading policies. Various trading pathways significantly affect these enterprises' decisions to reduce emissions. This paper examines the carbon emission reduction decisions of participants in the Chinese power generation industry under varying carbon allowance trading pathways. The Stackelberg game model is employed to analyze the challenges faced by the power generation industry in reducing carbon emissions, which comprises larger firms with a larger installed capacity and smaller power generation companies. The research indicates that: (1) when considering external carbon trading exclusively, variations in carbon abatement cost coefficients allow the two parties to adopt substitutable roles to mitigate supply shortages in the market; (2) when internal and external carbon trading paths coexist, they can effectively buffer external market shocks and curb large profit fluctuations, and (3) carbon trading price volatility and allowance sufficiency significantly affect the economic outcomes of power firms. Carbon trading prices determine corporate profits, while the scarcity of allowances affects firms' marginal decisions more indirectly. A smaller installed capacity is more vulnerable to external price volatility and institutional constraints. (4) The adjustment of carbon allowance allocation significantly moderates the behavior of power producers. Under allowance scarcity and high abatement costs, high cost subjects take the initiative to withdraw from the market. In contrast, low-cost subjects benefit from carbon allowance trading or market pricing, resulting in the redistribution of resources and profits.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102146"},"PeriodicalIF":4.4,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145976917","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2026-01-07DOI: 10.1016/j.jup.2026.102142
Sabine Landwehr-Zloch, Markus Hehn
Achieving climate neutrality in the EU by 2050 will require an unprecedented expansion of cross-border electricity grids. However, the current investment model, which is dominated by national transmission system operators and characterised by limited public budgets, is leading to a persistent financing gap.
This Policy Note introduces a novel EU-wide regulatory-financial framework – a harmonised congestion-revenue-based cap-and-floor regime – designed to systematically mobilise diverse sources of private capital across all phases of grid development. By combining regulatory innovation with a multi-phase investment logic and separating asset ownership from system operation, the model opens the market to non-traditional investors while safeguarding system integrity. Unlike existing national regimes, the proposed structure aligns risk allocation, revenue regulation, and investor participation across Member States. Building on insights from transition finance research, the framework translates Europe's decarbonisation goals into a deployable investment architecture that links financial system diversity with effective and efficient grid development.
Aligned with Action 9 of the EU Action Plan for Grids and the revised TEN-E Regulation, the paper provides a tangible and scalable policy pathway to close the interconnector investment gap, enhance capital-market access, and accelerate Europe's grid transformation in support of climate neutrality.
{"title":"Policy note: Mobilising private capital for European grids","authors":"Sabine Landwehr-Zloch, Markus Hehn","doi":"10.1016/j.jup.2026.102142","DOIUrl":"10.1016/j.jup.2026.102142","url":null,"abstract":"<div><div>Achieving climate neutrality in the EU by 2050 will require an unprecedented expansion of cross-border electricity grids. However, the current investment model, which is dominated by national transmission system operators and characterised by limited public budgets, is leading to a persistent financing gap.</div><div>This Policy Note introduces a novel EU-wide regulatory-financial framework – a harmonised congestion-revenue-based cap-and-floor regime – designed to systematically mobilise diverse sources of private capital across all phases of grid development. By combining regulatory innovation with a multi-phase investment logic and separating asset ownership from system operation, the model opens the market to non-traditional investors while safeguarding system integrity. Unlike existing national regimes, the proposed structure aligns risk allocation, revenue regulation, and investor participation across Member States. Building on insights from transition finance research, the framework translates Europe's decarbonisation goals into a deployable investment architecture that links financial system diversity with effective and efficient grid development.</div><div>Aligned with Action 9 of the EU Action Plan for Grids and the revised TEN-E Regulation, the paper provides a tangible and scalable policy pathway to close the interconnector investment gap, enhance capital-market access, and accelerate Europe's grid transformation in support of climate neutrality.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102142"},"PeriodicalIF":4.4,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145925431","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2026-01-17DOI: 10.1016/j.jup.2026.102143
Jessica Van Os , Timothy Weis , Andrew Leach
Decarbonizing electricity generation is an important step towards overall reductions in greenhouse gas emissions. Canada generates over 80% of its electricity from non-emitting sources and has a stated goal of net-zero electricity to support ambitions of net-zero emissions by 2050. Some provinces pose significant challenges to this goal, notably Alberta, which is the third-largest grid in the country and relies on fossil fuels for 80% of its electricity generation. This work uses an optimization capacity expansion and dispatch model to generate net-zero transition pathways for Alberta’s electricity system, which are novel for their consideration of Alberta’s energy-only market and for their inclusion of significant federal and provincial regulatory policies that affect supply options. Results indicate that, between 2023 and 2045, current policies could reduce electricity-related greenhouse gas emissions (excluding industrial cogeneration) by 83% and by 93% with the inclusion of draft federal electricity regulations. Results present a cost-optimal path distinct from existing literature that pairs tripling wind capacity with 2.7 GW of carbon capture and storage retrofits to existing units and 3.2-4.4 GW of low-use dispatchable gas and/or hydrogen capacity. Existing regulations that allow carbon credit trading, as the carbon price is scheduled to increase to 170 CAD/tCO2e by 2030, drive significant early reductions, which are enhanced by federal investment tax credits.
{"title":"Regulatory pathways to a net-zero electricity system in Alberta","authors":"Jessica Van Os , Timothy Weis , Andrew Leach","doi":"10.1016/j.jup.2026.102143","DOIUrl":"10.1016/j.jup.2026.102143","url":null,"abstract":"<div><div>Decarbonizing electricity generation is an important step towards overall reductions in greenhouse gas emissions. Canada generates over 80% of its electricity from non-emitting sources and has a stated goal of net-zero electricity to support ambitions of net-zero emissions by 2050. Some provinces pose significant challenges to this goal, notably Alberta, which is the third-largest grid in the country and relies on fossil fuels for 80% of its electricity generation. This work uses an optimization capacity expansion and dispatch model to generate net-zero transition pathways for Alberta’s electricity system, which are novel for their consideration of Alberta’s energy-only market and for their inclusion of significant federal and provincial regulatory policies that affect supply options. Results indicate that, between 2023 and 2045, current policies could reduce electricity-related greenhouse gas emissions (excluding industrial cogeneration) by 83% and by 93% with the inclusion of draft federal electricity regulations. Results present a cost-optimal path distinct from existing literature that pairs tripling wind capacity with 2.7 GW of carbon capture and storage retrofits to existing units and 3.2-4.4 GW of low-use dispatchable gas and/or hydrogen capacity. Existing regulations that allow carbon credit trading, as the carbon price is scheduled to increase to 170 CAD/t<sub>CO2e</sub> by 2030, drive significant early reductions, which are enhanced by federal investment tax credits.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102143"},"PeriodicalIF":4.4,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146037518","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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