Pub Date : 2026-01-24DOI: 10.1016/j.jup.2026.102153
Shubham Patwari, Satish Sharma, Prerna Jain
Energy storage (ES) enhances flexibility in local energy markets but is often economically unviable for individuals due to high capital costs. This paper proposes a two-stage stochastic model for community-based ES sharing using Physical Storage Rights (PSRs), enabling participants in the day-ahead (DA) market to access storage while accounting for uncertainties and physical constraints. ES owners earn upfront by selling PSRs, mitigating real-time market volatility. The model shifts from individual utility maximization to a system-oriented approach. Numerical results show PSR allocation is economically and physically viable, benefiting both storage owners and participants, even with varying storage efficiencies across the community.
{"title":"A physically-constrained and economically viable model for storage sharing in energy communities","authors":"Shubham Patwari, Satish Sharma, Prerna Jain","doi":"10.1016/j.jup.2026.102153","DOIUrl":"10.1016/j.jup.2026.102153","url":null,"abstract":"<div><div>Energy storage (ES) enhances flexibility in local energy markets but is often economically unviable for individuals due to high capital costs. This paper proposes a two-stage stochastic model for community-based ES sharing using Physical Storage Rights (PSRs), enabling participants in the day-ahead (DA) market to access storage while accounting for uncertainties and physical constraints. ES owners earn upfront by selling PSRs, mitigating real-time market volatility. The model shifts from individual utility maximization to a system-oriented approach. Numerical results show PSR allocation is economically and physically viable, benefiting both storage owners and participants, even with varying storage efficiencies across the community.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102153"},"PeriodicalIF":4.4,"publicationDate":"2026-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146037577","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 : 2026-01-22DOI: 10.1016/j.jup.2026.102151
Justyna Borowiec-Kapek
This study examines electricity security across 28 European countries from 2015 to 2024, applying a global framework to facilitate cross-country comparisons. The methodology considers system stability, accessibility, economic impacts of electricity prices, sustainable development, and governance quality. The study examines a baseline scenario and two additional scenarios: one focusing on power outages and another on household electricity prices. An extended GESI version also includes external dependence on imports. Scores are derived using Principal Component Analysis (PCA) and equal weights. The results reveal that during the analysed period, electricity security varies from moderate to high among the studied countries. Notably, Northern and Western European nations generally perform better than Southern and Southeastern European countries. In all scenarios except Scenario 3, the electricity security index is primarily influenced by system stability and governance quality, while the economic impact of industrial electricity prices appears negligible. In Scenario 3, however, both the quality of governance and the economic impact of consumer electricity prices play significant roles in determining electricity security. This result indicates that the Global Electricity Security Index is highly sensitive to the chosen affordability indicator. The results remain consistent across all scenarios and weighting methods. Several policy implications arise from these findings. Energy policy should prioritise affordable electricity prices as a crucial aspect of electricity security, and there is a clear need for investment in network and distribution infrastructure.
{"title":"Assessing electricity security in Europe: A multi-scenario application of the global electricity security index","authors":"Justyna Borowiec-Kapek","doi":"10.1016/j.jup.2026.102151","DOIUrl":"10.1016/j.jup.2026.102151","url":null,"abstract":"<div><div>This study examines electricity security across 28 European countries from 2015 to 2024, applying a global framework to facilitate cross-country comparisons. The methodology considers system stability, accessibility, economic impacts of electricity prices, sustainable development, and governance quality. The study examines a baseline scenario and two additional scenarios: one focusing on power outages and another on household electricity prices. An extended GESI version also includes external dependence on imports. Scores are derived using Principal Component Analysis (PCA) and equal weights. The results reveal that during the analysed period, electricity security varies from moderate to high among the studied countries. Notably, Northern and Western European nations generally perform better than Southern and Southeastern European countries. In all scenarios except Scenario 3, the electricity security index is primarily influenced by system stability and governance quality, while the economic impact of industrial electricity prices appears negligible. In Scenario 3, however, both the quality of governance and the economic impact of consumer electricity prices play significant roles in determining electricity security. This result indicates that the Global Electricity Security Index is highly sensitive to the chosen affordability indicator. The results remain consistent across all scenarios and weighting methods. Several policy implications arise from these findings. Energy policy should prioritise affordable electricity prices as a crucial aspect of electricity security, and there is a clear need for investment in network and distribution infrastructure.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102151"},"PeriodicalIF":4.4,"publicationDate":"2026-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146037578","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 : 2026-01-21DOI: 10.1016/j.jup.2026.102145
Yeswanth Reddy Yannam , Jinghang Gao , Jian Shi , Aparajita Datta , Kailai Wang , Ramanan Krishnamoorti , Joseph B. Powell , Debalina Sengupta , Xinyue Ye
The digitalization of the global energy transition creates a paradox. Technologies such as AI and blockchain can support more efficient and flexible energy systems, but they can also hide the power relations behind their use. Drawing on a systematic synthesis of 54 empirical studies, this article questions the idea that digital technologies are neutral. We show that current research often overlooks the material footprint of digital infrastructure and the political asymmetries that shape who benefits from it. To address this gap, we propose a human-centered justice framework that links distributive, procedural, and recognition justice to restorative justice. This link is important for confronting ecological debt and the neo-colonial forms of extraction that support many digital supply chains. Our analysis suggests that, without a clear ethical direction, digital tools may reinforce “techno-saviorism” and deepen structural inequalities. We conclude by outlining the socio-technical conditions under which digital interventions can move from centralized control toward genuine community empowerment.
{"title":"Toward a human-centered energy transition: Concepts, models, challenges, and research opportunities","authors":"Yeswanth Reddy Yannam , Jinghang Gao , Jian Shi , Aparajita Datta , Kailai Wang , Ramanan Krishnamoorti , Joseph B. Powell , Debalina Sengupta , Xinyue Ye","doi":"10.1016/j.jup.2026.102145","DOIUrl":"10.1016/j.jup.2026.102145","url":null,"abstract":"<div><div>The digitalization of the global energy transition creates a paradox. Technologies such as AI and blockchain can support more efficient and flexible energy systems, but they can also hide the power relations behind their use. Drawing on a systematic synthesis of 54 empirical studies, this article questions the idea that digital technologies are neutral. We show that current research often overlooks the material footprint of digital infrastructure and the political asymmetries that shape who benefits from it. To address this gap, we propose a human-centered justice framework that links distributive, procedural, and recognition justice to restorative justice. This link is important for confronting ecological debt and the neo-colonial forms of extraction that support many digital supply chains. Our analysis suggests that, without a clear ethical direction, digital tools may reinforce “techno-saviorism” and deepen structural inequalities. We conclude by outlining the socio-technical conditions under which digital interventions can move from centralized control toward genuine community empowerment.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102145"},"PeriodicalIF":4.4,"publicationDate":"2026-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146037576","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 : 2026-01-17DOI: 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":"2026-01-17","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}
Pub Date : 2026-01-17DOI: 10.1016/j.jup.2026.102150
Theodore Fruithier Aihadji Ligan , Johnson Herlich Roslee Mensah , Ivan Felipe Silva dos Santos , Geraldo Lucio Tiago Filho , Sabi Yari Moïse Bandiri
This study analyzes the performance and main challenges of the Republic of Benin's electricity system, highlighting its current dependence on thermoelectric generation and energy imports. Based on official data and national statistics, the research assesses the country's energy demand, with an emphasis on the residential sector, and estimates future needs considering a scenario of improved living conditions for the population. The methodology integrates quantitative analysis of demographic consumption and natural resources data with scenario modeling to project national demand and evaluate strategies to mitigate the energy deficit. The demands were estimated using average consumption data for the country and projected into the future based on a hypothetical scenario of improved living conditions for the population. The results indicated that Benin's current installed capacity remains insufficient to meet domestic demand, with electricity access rates below 50 % in much of the territory. To address this challenge, two strategies were proposed: the construction of a 230 kV transmission line connecting the north and south of the country and the expansion of generation capacity from renewable energy sources (RES), especially solar and hydropower. The combined application of these measures can increase supply reliability, reduce external dependence, and promote sustainable economic development, ensuring greater social well-being and energy security in the country.
{"title":"Analytical study of the operation and needs of Benin Republic's electricity sector","authors":"Theodore Fruithier Aihadji Ligan , Johnson Herlich Roslee Mensah , Ivan Felipe Silva dos Santos , Geraldo Lucio Tiago Filho , Sabi Yari Moïse Bandiri","doi":"10.1016/j.jup.2026.102150","DOIUrl":"10.1016/j.jup.2026.102150","url":null,"abstract":"<div><div>This study analyzes the performance and main challenges of the Republic of Benin's electricity system, highlighting its current dependence on thermoelectric generation and energy imports. Based on official data and national statistics, the research assesses the country's energy demand, with an emphasis on the residential sector, and estimates future needs considering a scenario of improved living conditions for the population. The methodology integrates quantitative analysis of demographic consumption and natural resources data with scenario modeling to project national demand and evaluate strategies to mitigate the energy deficit. The demands were estimated using average consumption data for the country and projected into the future based on a hypothetical scenario of improved living conditions for the population. The results indicated that Benin's current installed capacity remains insufficient to meet domestic demand, with electricity access rates below 50 % in much of the territory. To address this challenge, two strategies were proposed: the construction of a 230 kV transmission line connecting the north and south of the country and the expansion of generation capacity from renewable energy sources (RES), especially solar and hydropower. The combined application of these measures can increase supply reliability, reduce external dependence, and promote sustainable economic development, ensuring greater social well-being and energy security in the country.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102150"},"PeriodicalIF":4.4,"publicationDate":"2026-01-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146037519","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 : 2026-01-16DOI: 10.1016/j.jup.2026.102147
Martin Durdovic, Daniel Čermák
As a low-carbon baseload source, nuclear energy is experiencing a revival in policy toward climate-neutrality targets, which has been accompanied by changes in public opinion following the 2021–2023 energy crisis. This article compares data from three representative public opinion surveys (2021, 2022, and 2023) to understand the substantial rise in acceptance of nuclear energy in the Czech Republic. Our hypothesis-driven research employs multiple ordinary least squares regressions and constructs two types of models (baseline and extended) to identify drivers of acceptance, including variables on sociodemographic characteristics, country-specific situational attitudes, and attitudes toward climate change, energy security, and environmental issues. We found that while the rise in acceptance partially diminished between 2022 and 2023, the recurrent higher level of acceptance echoes enduring changes in public attitudes. Statistically, men and more educated individuals show substantial support for nuclear energy, but age was not significant. Overall, higher acceptance was positively associated with energy security and negatively with climate change concerns, yet the 2023 model suggests a possible drift toward a more favorable attitude toward nuclear energy among the climate-concerned. Similarly, the perception of economic downturn after the crisis led to reluctant acceptance of nuclear in 2023. Finally, predictors of trust indicate that it is difficult for the government to meet the expectations of nuclear energy supporters, and the link between nuclear energy and populism is weaker than in other countries. Our results contribute to understanding public attitudes toward nuclear energy as part of energy transitions in the post-crisis period.
{"title":"Reinforced by the energy crisis: Nuclear revival and public opinion in the Czech Republic","authors":"Martin Durdovic, Daniel Čermák","doi":"10.1016/j.jup.2026.102147","DOIUrl":"10.1016/j.jup.2026.102147","url":null,"abstract":"<div><div>As a low-carbon baseload source, nuclear energy is experiencing a revival in policy toward climate-neutrality targets, which has been accompanied by changes in public opinion following the 2021–2023 energy crisis. This article compares data from three representative public opinion surveys (2021, 2022, and 2023) to understand the substantial rise in acceptance of nuclear energy in the Czech Republic. Our hypothesis-driven research employs multiple ordinary least squares regressions and constructs two types of models (baseline and extended) to identify drivers of acceptance, including variables on sociodemographic characteristics, country-specific situational attitudes, and attitudes toward climate change, energy security, and environmental issues. We found that while the rise in acceptance partially diminished between 2022 and 2023, the recurrent higher level of acceptance echoes enduring changes in public attitudes. Statistically, men and more educated individuals show substantial support for nuclear energy, but age was not significant. Overall, higher acceptance was positively associated with energy security and negatively with climate change concerns, yet the 2023 model suggests a possible drift toward a more favorable attitude toward nuclear energy among the climate-concerned. Similarly, the perception of economic downturn after the crisis led to reluctant acceptance of nuclear in 2023. Finally, predictors of trust indicate that it is difficult for the government to meet the expectations of nuclear energy supporters, and the link between nuclear energy and populism is weaker than in other countries. Our results contribute to understanding public attitudes toward nuclear energy as part of energy transitions in the post-crisis period.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102147"},"PeriodicalIF":4.4,"publicationDate":"2026-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145976913","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 : 2026-01-15DOI: 10.1016/j.jup.2026.102148
Walquiria N. Silva , Giovani G.T.T. Vieira , Erik Eduardo Rego , Lucas F.C. Simone , Luís F.N. Lourenço , Maurício B.C. Salles
The accelerated expansion of micro and mini distributed generation (MMDG), predominantly photovoltaic, has introduced new operational challenges to Brazil's hydro-thermal power system. Since MMDG supplies load directly at the distribution level, it reduces the net demand visible to the transmission grid. This thread is reshaping the national net-load curve by deepening the midday valley and steepening the evening ramp that centrally dispatched resources must supply. Although the duck curve phenomenon and its curtailment implications have been widely studied internationally, quantitative evidence for hydro-dominated systems remains limited. In this context, the present study applies a data-driven analysis of hourly operational data from 2024 to evaluate how MMDG growth affects net-load variability, modifies ramping behavior, and influences curtailment exposure in the Brazilian National Interconnected System (SIN). To this end, the analysis addresses two guiding questions: (i) how the expansion of MMDG reshapes the aggregated load curve and alters intraday variability, and (ii) how its production profile relates to curtailment events classified as energy imbalance (ENE) in centralized wind and solar plants. By examining these aspects together, the study provides system-level evidence particularly relevant to hydro-based electricity systems undergoing rapid distributed PV expansion. The empirical results show that MMDG accentuates midday net-load valleys, particularly on weekends, with the lowest values occurring on Sundays, approaching 50,000 MW, followed by evening recoveries exceeding 25,000 MW and extreme short-term ramp rates approaching 10,000 MW per hour. Flexibility Factor indicators range from 0.59 to 0.71, indicating heightened short-term operational stress. At the same time, ENE curtailment intensifies during hours of high distributed output, presenting moderate positive correlations (ρ ≈ 0.37–0.49, p < 0.01). Taken together, these findings demonstrate that the continued growth of MMDG amplifies intraday variability and curtailment exposure in Brazil's hydro-dominated system, thereby underscoring the need for strengthened coordination between transmission and distribution operators.
{"title":"Curtailment pressures and grid flexibility in Brazil: Lessons from the fast-rising distributed generation","authors":"Walquiria N. Silva , Giovani G.T.T. Vieira , Erik Eduardo Rego , Lucas F.C. Simone , Luís F.N. Lourenço , Maurício B.C. Salles","doi":"10.1016/j.jup.2026.102148","DOIUrl":"10.1016/j.jup.2026.102148","url":null,"abstract":"<div><div>The accelerated expansion of micro and mini distributed generation (MMDG), predominantly photovoltaic, has introduced new operational challenges to Brazil's hydro-thermal power system. Since MMDG supplies load directly at the distribution level, it reduces the net demand visible to the transmission grid. This thread is reshaping the national net-load curve by deepening the midday valley and steepening the evening ramp that centrally dispatched resources must supply. Although the duck curve phenomenon and its curtailment implications have been widely studied internationally, quantitative evidence for hydro-dominated systems remains limited. In this context, the present study applies a data-driven analysis of hourly operational data from 2024 to evaluate how MMDG growth affects net-load variability, modifies ramping behavior, and influences curtailment exposure in the Brazilian National Interconnected System (SIN). To this end, the analysis addresses two guiding questions: (i) how the expansion of MMDG reshapes the aggregated load curve and alters intraday variability, and (ii) how its production profile relates to curtailment events classified as energy imbalance (ENE) in centralized wind and solar plants. By examining these aspects together, the study provides system-level evidence particularly relevant to hydro-based electricity systems undergoing rapid distributed PV expansion. The empirical results show that MMDG accentuates midday net-load valleys, particularly on weekends, with the lowest values occurring on Sundays, approaching 50,000 MW, followed by evening recoveries exceeding 25,000 MW and extreme short-term ramp rates approaching 10,000 MW per hour. Flexibility Factor indicators range from 0.59 to 0.71, indicating heightened short-term operational stress. At the same time, ENE curtailment intensifies during hours of high distributed output, presenting moderate positive correlations (<em>ρ</em> ≈ 0.37–0.49, <em>p</em> < 0.01). Taken together, these findings demonstrate that the continued growth of MMDG amplifies intraday variability and curtailment exposure in Brazil's hydro-dominated system, thereby underscoring the need for strengthened coordination between transmission and distribution operators.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102148"},"PeriodicalIF":4.4,"publicationDate":"2026-01-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145976918","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 : 2026-01-14DOI: 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":"2026-01-14","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 : 2026-01-14DOI: 10.1016/j.jup.2026.102144
Gert Bijnens , John Hutchinson , Arthur Saint Guilhem
Investments in renewable energy and carbon taxes aim to combat global warming but could significantly raise electricity prices, adversely affecting manufacturing employment. Analyzing over 200,000 firms, we find that the likelihood of job losses or reallocation increases with reliance on electricity as a production input, affecting regions such as Southern Germany and Northern Italy most. Financially constrained firms are particularly vulnerable, suggesting a role for monetary policy in mitigating the adverse employment effects of higher carbon prices. Fiscal strategies should carefully balance environmental objectives and equitable labor market outcomes, given the benefits of renewable energy and the need to shift employment not only across sectors but also between regions. Such a balanced approach is essential to limit the long-term distributional impacts of higher electricity prices caused by the “carbon shock,” i.e. a carbon-policy-driven price increase.
{"title":"Navigating the carbon price shock: Electricity costs and employment reallocation in Europe","authors":"Gert Bijnens , John Hutchinson , Arthur Saint Guilhem","doi":"10.1016/j.jup.2026.102144","DOIUrl":"10.1016/j.jup.2026.102144","url":null,"abstract":"<div><div>Investments in renewable energy and carbon taxes aim to combat global warming but could significantly raise electricity prices, adversely affecting manufacturing employment. Analyzing over 200,000 firms, we find that the likelihood of job losses or reallocation increases with reliance on electricity as a production input, affecting regions such as Southern Germany and Northern Italy most. Financially constrained firms are particularly vulnerable, suggesting a role for monetary policy in mitigating the adverse employment effects of higher carbon prices. Fiscal strategies should carefully balance environmental objectives and equitable labor market outcomes, given the benefits of renewable energy and the need to shift employment not only across sectors but also between regions. Such a balanced approach is essential to limit the long-term distributional impacts of higher electricity prices caused by the “carbon shock,” i.e. a carbon-policy-driven price increase.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"99 ","pages":"Article 102144"},"PeriodicalIF":4.4,"publicationDate":"2026-01-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145976919","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 : 2026-01-07DOI: 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":"2026-01-07","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}
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