Pub Date : 2025-11-22DOI: 10.1016/j.jup.2025.102110
Amsalu Woldie Yalew
Policy reforms targeting implicit subsidies to public power utilities are expected to have repercussions on the electricity sector, as well as the rest of the economy. This study aims to glean insights into the potential direct and indirect effects of reforming implicit power sector subsidies in the context of low-income countries. Using a computable general equilibrium (CGE) model, it is demonstrated that a hypothetical reduction in implicit subsidies in Ethiopia would increase the share of off-grid sources in the total electricity supply and enhance production efficiency in the grid electricity sector, with no substantial impact on GDP.
{"title":"Sectoral and macroeconomic implications of reducing implicit power sector subsidies in developing countries: Insights from Ethiopia","authors":"Amsalu Woldie Yalew","doi":"10.1016/j.jup.2025.102110","DOIUrl":"10.1016/j.jup.2025.102110","url":null,"abstract":"<div><div>Policy reforms targeting implicit subsidies to public power utilities are expected to have repercussions on the electricity sector, as well as the rest of the economy. This study aims to glean insights into the potential direct and indirect effects of reforming implicit power sector subsidies in the context of low-income countries. Using a computable general equilibrium (CGE) model, it is demonstrated that a hypothetical reduction in implicit subsidies in Ethiopia would increase the share of off-grid sources in the total electricity supply and enhance production efficiency in the grid electricity sector, with no substantial impact on GDP.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"98 ","pages":"Article 102110"},"PeriodicalIF":4.4,"publicationDate":"2025-11-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145614470","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 : 2025-11-22DOI: 10.1016/j.jup.2025.102087
Daniele Stampatori , Sanchayan Banerjee , José Pablo Chaves Ávila
Electricity end users can contribute to the secure operation of the future power system by aligning their electricity consumption with the overall system's needs. To facilitate this, end users should receive economic signals that are economically optimal and behaviourally salient to guide their decisions. In fact, end users may not respond to economic signals solely based on economic evaluations. We propose a conceptual framework that describes ways in which key stakeholders can influence end-user behaviour in demand response programmes. We do this in two steps. First, we identify key stakeholders by examining demand response contracts. Second, we categorise literature on end-user behaviour in electricity demand response through the established Capability, Opportunity, Motivation – Behaviour (COM-B) model. We extend this model by integrating behaviourally informed tools that stakeholders can employ to facilitate end-user participation in demand response programmes. Our setup enables policymakers to better understand key behavioural determinants, allowing them to design behaviourally informed energy policies for demand response.
{"title":"Shaping electricity end-user behaviour for demand response using the COM-B model","authors":"Daniele Stampatori , Sanchayan Banerjee , José Pablo Chaves Ávila","doi":"10.1016/j.jup.2025.102087","DOIUrl":"10.1016/j.jup.2025.102087","url":null,"abstract":"<div><div>Electricity end users can contribute to the secure operation of the future power system by aligning their electricity consumption with the overall system's needs. To facilitate this, end users should receive economic signals that are economically optimal and behaviourally salient to guide their decisions. In fact, end users may not respond to economic signals solely based on economic evaluations. We propose a conceptual framework that describes ways in which key stakeholders can influence end-user behaviour in demand response programmes. We do this in two steps. First, we identify key stakeholders by examining demand response contracts. Second, we categorise literature on end-user behaviour in electricity demand response through the established Capability, Opportunity, Motivation – Behaviour (COM-B) model. We extend this model by integrating behaviourally informed tools that stakeholders can employ to facilitate end-user participation in demand response programmes. Our setup enables policymakers to better understand key behavioural determinants, allowing them to design behaviourally informed energy policies for demand response.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"98 ","pages":"Article 102087"},"PeriodicalIF":4.4,"publicationDate":"2025-11-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145569022","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 : 2025-11-22DOI: 10.1016/j.jup.2025.102105
Elias Cavalcante-Filho , Rodrigo De-Losso , Felipe Sande , José Roberto Savoia
This paper examines the multifaceted impact of regulatory changes on systemic risk within the affected sector and their contagion effects on other regulated industries. Using the sudden implementation of Brazilian legislation (Provisional Act No. 579/2012, which restructured the electricity sector) as a natural experiment, we assess whether such a policy shock increased market risk exposure for directly and indirectly affected firms. To estimate causal effects, we combine the Synthetic Control Method and Difference-in-Differences approaches, using CAPM betas as the measure of systemic risk for publicly traded firms between 2005 and 2018. The results indicate that PA579 significantly increased the systemic risk of electricity companies and also raised market risk in other regulated sectors, including highways, healthcare, gas, telephony, sanitation, and aviation. These findings highlight that abrupt regulatory interventions can propagate credibility shocks beyond their target sector, underscoring the importance of transparency and predictability in regulatory policy design.
{"title":"Cross-sectoral effects of regulatory uncertainty: Lessons from Brazil","authors":"Elias Cavalcante-Filho , Rodrigo De-Losso , Felipe Sande , José Roberto Savoia","doi":"10.1016/j.jup.2025.102105","DOIUrl":"10.1016/j.jup.2025.102105","url":null,"abstract":"<div><div>This paper examines the multifaceted impact of regulatory changes on systemic risk within the affected sector and their contagion effects on other regulated industries. Using the sudden implementation of Brazilian legislation (Provisional Act No. 579/2012, which restructured the electricity sector) as a natural experiment, we assess whether such a policy shock increased market risk exposure for directly and indirectly affected firms. To estimate causal effects, we combine the Synthetic Control Method and Difference-in-Differences approaches, using CAPM betas as the measure of systemic risk for publicly traded firms between 2005 and 2018. The results indicate that PA579 significantly increased the systemic risk of electricity companies and also raised market risk in other regulated sectors, including highways, healthcare, gas, telephony, sanitation, and aviation. These findings highlight that abrupt regulatory interventions can propagate credibility shocks beyond their target sector, underscoring the importance of transparency and predictability in regulatory policy design.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"98 ","pages":"Article 102105"},"PeriodicalIF":4.4,"publicationDate":"2025-11-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145614472","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 : 2025-11-21DOI: 10.1016/j.jup.2025.102107
Juntao Zhen, Laijun Zhao, Chenchen Wang, Youfeng Cheng, Hongru Yi, Ke Wang
Under the guidance of peak carbon and neutrality goals and driven by its energy transition strategy, China introduced a renewable energy consumption responsibility mechanism. However, provinces currently act independently regarding electricity consumption, making it difficult to simultaneously reduce the costs of their renewable energy consumption responsibility weights (CRWs) while increasing electricity revenue. To solve this problem, we constructed a bi-level multi-objective cross-provincial renewable energy consumption transfer fees model (CTFM), in which the central government is the upper level and provincial governments are the lower level. The leader sets the prices for renewable energy consumption transfer fees to minimize the total cost caused by the CRWs and maximize electricity revenue within the cooperative region. Followers then respond to the leader's transfer fees by optimizing their electricity consumption strategies to reduce the cost of their CRW and increase electricity revenue. The model is solved using bi-level programming combined with a relaxation approach and is applied to a cooperative region comprising Beijing, Shandong, Hebei, and Inner Mongolia. Compared with the independent approach, a transfer price of 0.351 CNY/kWh allowed the CTFM to reduce the fulfillment cost by 206.869 × 10^8 CNY (13.785 %) and increase electricity revenue by 1779.845 × 10^8 CNY (5.718 %). Sensitivity analysis showed how variations in provincial green electricity generation affected costs and revenues. Our results provide a reference for Chinese provinces to formulate cooperative electricity consumption strategies that balance costs and benefits, thereby promoting a green and low-carbon transition in the power sector.
{"title":"A bi-level multi-objective optimization model for cross-provincial transfer fees to promote cooperation in renewable energy consumption","authors":"Juntao Zhen, Laijun Zhao, Chenchen Wang, Youfeng Cheng, Hongru Yi, Ke Wang","doi":"10.1016/j.jup.2025.102107","DOIUrl":"10.1016/j.jup.2025.102107","url":null,"abstract":"<div><div>Under the guidance of peak carbon and neutrality goals and driven by its energy transition strategy, China introduced a renewable energy consumption responsibility mechanism. However, provinces currently act independently regarding electricity consumption, making it difficult to simultaneously reduce the costs of their renewable energy consumption responsibility weights (CRWs) while increasing electricity revenue. To solve this problem, we constructed a bi-level multi-objective cross-provincial renewable energy consumption transfer fees model (CTFM), in which the central government is the upper level and provincial governments are the lower level. The leader sets the prices for renewable energy consumption transfer fees to minimize the total cost caused by the CRWs and maximize electricity revenue within the cooperative region. Followers then respond to the leader's transfer fees by optimizing their electricity consumption strategies to reduce the cost of their CRW and increase electricity revenue. The model is solved using bi-level programming combined with a relaxation approach and is applied to a cooperative region comprising Beijing, Shandong, Hebei, and Inner Mongolia. Compared with the independent approach, a transfer price of 0.351 CNY/kWh allowed the CTFM to reduce the fulfillment cost by 206.869 × 10^8 CNY (13.785 %) and increase electricity revenue by 1779.845 × 10^8 CNY (5.718 %). Sensitivity analysis showed how variations in provincial green electricity generation affected costs and revenues. Our results provide a reference for Chinese provinces to formulate cooperative electricity consumption strategies that balance costs and benefits, thereby promoting a green and low-carbon transition in the power sector.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"98 ","pages":"Article 102107"},"PeriodicalIF":4.4,"publicationDate":"2025-11-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145569023","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 : 2025-11-19DOI: 10.1016/j.jup.2025.102103
Omid Motamedisedeh , Sara Omrani , Robin Drogemuller , Geoffrey Walker , Faranak Zagia , Zahra Motamedi Sedeh
This paper presents a comprehensive techno-economic optimization model to examine how optimal configurations of residential PV-battery systems have evolved across five Australian states over a twelve-year period (2013/14 to 2024/25), driven by changes in policy, electricity tariffs, and technology costs. As the global leader in rooftop solar adoption, Australia offers a valuable case for understanding the long-term dynamics of distributed energy systems. Unlike previous studies that focus on a single metric or static analysis, this research provides three key contributions: (a) a multi-indicator framework that evaluates financial and technical performance using metrics such as Net Present Value, Selfe-Consumption and Selfe-Sufficiency ratios, Cost of Electricity, and Curtailed-Supply Fraction; (b) a long-term temporal analysis that compares optimal system configurations and performance indicators across twelve consecutive years; and (c) a geographically diverse case study across Queensland, New South Wales, South Australia, Victoria, and Tasmania to capture regional variation. Results show that PV systems consistently delivered substantial financial benefits across most states, with average IRRs of ∼20 % and household electricity costs reduced by around 35 %. The highest savings were observed in Queensland, where PV-battery systems cut household electricity costs by up to 72 % in 2023. In the early years, optimal PV sizes ranged from 4 to 6 kW but expanded to 15–16 kW in recent years due to declining technology costs. Battery adoption, which became financially viable only from 2023 onward, increased household self-sufficiency to an average of 60 % and up to 76 % in South Australia, although self-consumption fell to 30–40 % in some oversized systems. Tasmania was an outlier, where PV adoption was not financially attractive until after 2015, and batteries remained non-viable throughout the study period.
{"title":"Techno-economic optimization of PV-battery systems in five Australian states","authors":"Omid Motamedisedeh , Sara Omrani , Robin Drogemuller , Geoffrey Walker , Faranak Zagia , Zahra Motamedi Sedeh","doi":"10.1016/j.jup.2025.102103","DOIUrl":"10.1016/j.jup.2025.102103","url":null,"abstract":"<div><div>This paper presents a comprehensive techno-economic optimization model to examine how optimal configurations of residential PV-battery systems have evolved across five Australian states over a twelve-year period (2013/14 to 2024/25), driven by changes in policy, electricity tariffs, and technology costs. As the global leader in rooftop solar adoption, Australia offers a valuable case for understanding the long-term dynamics of distributed energy systems. Unlike previous studies that focus on a single metric or static analysis, this research provides three key contributions: (a) a multi-indicator framework that evaluates financial and technical performance using metrics such as Net Present Value, Selfe-Consumption and Selfe-Sufficiency ratios, Cost of Electricity, and Curtailed-Supply Fraction; (b) a long-term temporal analysis that compares optimal system configurations and performance indicators across twelve consecutive years; and (c) a geographically diverse case study across Queensland, New South Wales, South Australia, Victoria, and Tasmania to capture regional variation. Results show that PV systems consistently delivered substantial financial benefits across most states, with average IRRs of ∼20 % and household electricity costs reduced by around 35 %. The highest savings were observed in Queensland, where PV-battery systems cut household electricity costs by up to 72 % in 2023. In the early years, optimal PV sizes ranged from 4 to 6 kW but expanded to 15–16 kW in recent years due to declining technology costs. Battery adoption, which became financially viable only from 2023 onward, increased household self-sufficiency to an average of 60 % and up to 76 % in South Australia, although self-consumption fell to 30–40 % in some oversized systems. Tasmania was an outlier, where PV adoption was not financially attractive until after 2015, and batteries remained non-viable throughout the study period.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"98 ","pages":"Article 102103"},"PeriodicalIF":4.4,"publicationDate":"2025-11-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145569024","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 : 2025-11-14DOI: 10.1016/j.jup.2025.102104
Josh A. Dippenaar , Bernard Bekker , Kevin Foster , Megan Davies
The rapid proliferation of distributed energy resources (DERs), including solar PV, battery storage, and electric vehicles, is fundamentally transforming power systems worldwide. Regulatory frameworks for the grid integration of DERs have struggled to keep pace, resulting in widespread non-compliance and a range of technical and financial challenges. This paper introduces a novel, penetration-based synthesis that maps DER impacts – including distribution grid constraints, utility revenue pressures, system flexibility, and stability concerns according to the level of DER adoption. We foreground the role of soft law – non-binding guidelines, voluntary standards, and stakeholder coalitions – and the concept of transition work as critical mechanisms for adaptive regulation. Drawing on a systematic literature review and international case studies, we identify how these impacts emerge at different penetration levels and demonstrate how timely, flexible regulatory responses can mitigate risks. Our analysis shows that adaptive, equitable tariff design and collaborative institutional reform are essential for sustainable DER integration. We argue that soft law and transition work enable more responsive, anticipatory regulation than traditional hard law alone. These findings offer actionable pathways for policymakers, regulators, and utility managers seeking to address the evolving technical and institutional challenges of DER integration and accelerate the energy transition.
{"title":"A synthesis of distributed energy resource impacts and regulatory responses with a focus on soft law","authors":"Josh A. Dippenaar , Bernard Bekker , Kevin Foster , Megan Davies","doi":"10.1016/j.jup.2025.102104","DOIUrl":"10.1016/j.jup.2025.102104","url":null,"abstract":"<div><div>The rapid proliferation of distributed energy resources (DERs), including solar PV, battery storage, and electric vehicles, is fundamentally transforming power systems worldwide. Regulatory frameworks for the grid integration of DERs have struggled to keep pace, resulting in widespread non-compliance and a range of technical and financial challenges. This paper introduces a novel, penetration-based synthesis that maps DER impacts – including distribution grid constraints, utility revenue pressures, system flexibility, and stability concerns according to the level of DER adoption. We foreground the role of soft law – non-binding guidelines, voluntary standards, and stakeholder coalitions – and the concept of transition work as critical mechanisms for adaptive regulation. Drawing on a systematic literature review and international case studies, we identify how these impacts emerge at different penetration levels and demonstrate how timely, flexible regulatory responses can mitigate risks. Our analysis shows that adaptive, equitable tariff design and collaborative institutional reform are essential for sustainable DER integration. We argue that soft law and transition work enable more responsive, anticipatory regulation than traditional hard law alone. These findings offer actionable pathways for policymakers, regulators, and utility managers seeking to address the evolving technical and institutional challenges of DER integration and accelerate the energy transition.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"98 ","pages":"Article 102104"},"PeriodicalIF":4.4,"publicationDate":"2025-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145517456","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 : 2025-11-06DOI: 10.1016/j.jup.2025.102101
L.E. Rielli, F. Alves, J. Limão, I. Campos
The energy transition represents a shift in the global energy paradigm, intertwining technological advancements with societal goals. It provides an opportunity to replace energy sources while addressing energy poverty, security, affordability, and democracy. However, energy justice policies remain fragmented across EU Member States. This study uses participatory methods in co-creation workshops to explore how policy mixes can enhance citizen and community economic participation in wind energy projects in Portugal. It identifies policy instruments to accelerate wind energy while ensuring distributive and procedural justice. The resulting policy framework emphasizes fiscal, regulatory, and educational measures supporting a just, people centered energy transition.
{"title":"From stakeholders to shareholders: Policy priorities in Portugal for a just energy transition","authors":"L.E. Rielli, F. Alves, J. Limão, I. Campos","doi":"10.1016/j.jup.2025.102101","DOIUrl":"10.1016/j.jup.2025.102101","url":null,"abstract":"<div><div>The energy transition represents a shift in the global energy paradigm, intertwining technological advancements with societal goals. It provides an opportunity to replace energy sources while addressing energy poverty, security, affordability, and democracy. However, energy justice policies remain fragmented across EU Member States. This study uses participatory methods in co-creation workshops to explore how policy mixes can enhance citizen and community economic participation in wind energy projects in Portugal. It identifies policy instruments to accelerate wind energy while ensuring distributive and procedural justice. The resulting policy framework emphasizes fiscal, regulatory, and educational measures supporting a just, people centered energy transition.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"98 ","pages":"Article 102101"},"PeriodicalIF":4.4,"publicationDate":"2025-11-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145466912","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 : 2025-11-05DOI: 10.1016/j.jup.2025.102100
Richard Franceys , Sam Kayaga
For adequate water and sanitation services, it is necessary to consider the level of capital and capital maintenance expenditure for ongoing systems to deliver SDG-6 and now climate resilience. This study of utility capital expenditure over 180 years found that in England and Wales, UK, it took an average annual investment of $49 per capita (USD$ PPP, 2020 prices) to achieve ‘SDG-6’ equivalence after the first 125 years, at $22,800 GDP pc; $137pc to maintain and enhance service quality over the following 50 years to 2025; with regulatory approval for $228pc annually to 2030 ($50,000 GDP pc).
{"title":"One hundred and eighty years of capital expenditure for equitable and climate-resilient water and sanitation in England and Wales","authors":"Richard Franceys , Sam Kayaga","doi":"10.1016/j.jup.2025.102100","DOIUrl":"10.1016/j.jup.2025.102100","url":null,"abstract":"<div><div>For adequate water and sanitation services, it is necessary to consider the level of capital and capital maintenance expenditure for ongoing systems to deliver SDG-6 and now climate resilience. This study of utility capital expenditure over 180 years found that in England and Wales, UK, it took an average annual investment of $49 per capita (USD$ PPP, 2020 prices) to achieve ‘SDG-6’ equivalence after the first 125 years, at $22,800 GDP pc; $137pc to maintain and enhance service quality over the following 50 years to 2025; with regulatory approval for $228pc annually to 2030 ($50,000 GDP pc).</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"98 ","pages":"Article 102100"},"PeriodicalIF":4.4,"publicationDate":"2025-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145466911","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 : 2025-11-01DOI: 10.1016/j.jup.2025.102099
Michael G. Pollitt , Daniel Duma , Rona Mitchell , Andrei Covatariu
The connection queue in Great Britain (GB) is recognized as a major challenge for electricity networks and for the energy transition. The queue reached 726 GW in July 2024 for generation and storage, but it is also significant on the load side. The government, the regulator, and the industry have identified the drivers of this problem. One driver is the inability of the First-Come, First-Served (FCFS) rule (the de facto system of allocation) to account for the feasibility, progress, and value of the different projects applying for connection. This paper explores this latter aspect by applying concepts from auction theory, mechanism design, and queuing theory to a case study on the distribution network in GB. The paper discusses potential changes to the initial (primary) allocation of connection rights, considering auction concepts like the beauty contest and the Knapsack problem. It also explores queue management by introducing a secondary trading of connection rights to increase efficiency. The paper also discusses the risks and potential biases of such changes, including asymmetric information and strategic behaviour.
{"title":"Managing Great Britain's electricity distribution connection queue: lessons from auction theory and a potential position trading system","authors":"Michael G. Pollitt , Daniel Duma , Rona Mitchell , Andrei Covatariu","doi":"10.1016/j.jup.2025.102099","DOIUrl":"10.1016/j.jup.2025.102099","url":null,"abstract":"<div><div>The connection queue in Great Britain (GB) is recognized as a major challenge for electricity networks and for the energy transition. The queue reached 726 GW in July 2024 for generation and storage, but it is also significant on the load side. The government, the regulator, and the industry have identified the drivers of this problem. One driver is the inability of the First-Come, First-Served (FCFS) rule (the de facto system of allocation) to account for the feasibility, progress, and value of the different projects applying for connection. This paper explores this latter aspect by applying concepts from auction theory, mechanism design, and queuing theory to a case study on the distribution network in GB. The paper discusses potential changes to the initial (primary) allocation of connection rights, considering auction concepts like the beauty contest and the Knapsack problem. It also explores queue management by introducing a secondary trading of connection rights to increase efficiency. The paper also discusses the risks and potential biases of such changes, including asymmetric information and strategic behaviour.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"98 ","pages":"Article 102099"},"PeriodicalIF":4.4,"publicationDate":"2025-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145419317","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 : 2025-10-31DOI: 10.1016/j.jup.2025.102097
Hu Wang , Feng Wang , Juan Liu , Rui Ling , Hao Zhang , Hongfei Jiang
This study empirically examines whether China's energy transition pace is primarily driven by supply-side or demand-side factors, focusing on the roles of energy investment in state-owned assets (EISA), environmental regulations, and marketization processes. Using spatial econometric models on panel data from 30 Chinese provinces (2008–2021), we identify distinct mechanisms on each side of the analysis. On the demand side, EISA reduces the share of fossil fuel consumption and mitigates marketization-induced fossil energy use, yet it weakens the effectiveness of environmental regulation. Stricter environmental regulations can reduce the consumption of fossil energy, further promoting cleaner energy use by positively moderating EISA and weakening the tangential effects of marketization. Although marketization initially stimulates fossil energy consumption, it ultimately enhances the effectiveness of environmental regulations and optimizes the allocation of EISA. On the supply side, EISA significantly promotes local new energy production. However, it generates negative spatial spillover effects and inhibits the development of renewable energy in neighboring regions. Environmental regulations promote new energy production most significantly in the eastern region of the country, but they also cause similar negative spillover patterns. Marketization processes suppress new energy production overall, with pronounced regional disparities. This study contributes empirical evidence regarding spatial spillovers and regional heterogeneity in China's energy transition process. The findings may provide a scientific basis for integrating synergistic development cross-regionally, as well as optimizing conjoined environmental regulations and market-oriented policies. This study further provides novel insights into the trajectory of China's energy transition at the regional level, complementing existing literature on spatial spillover issues.
{"title":"Is China's energy transition pace driven by the supply-side or the demand-side?","authors":"Hu Wang , Feng Wang , Juan Liu , Rui Ling , Hao Zhang , Hongfei Jiang","doi":"10.1016/j.jup.2025.102097","DOIUrl":"10.1016/j.jup.2025.102097","url":null,"abstract":"<div><div>This study empirically examines whether China's energy transition pace is primarily driven by supply-side or demand-side factors, focusing on the roles of energy investment in state-owned assets (EISA), environmental regulations, and marketization processes. Using spatial econometric models on panel data from 30 Chinese provinces (2008–2021), we identify distinct mechanisms on each side of the analysis. On the demand side, EISA reduces the share of fossil fuel consumption and mitigates marketization-induced fossil energy use, yet it weakens the effectiveness of environmental regulation. Stricter environmental regulations can reduce the consumption of fossil energy, further promoting cleaner energy use by positively moderating EISA and weakening the tangential effects of marketization. Although marketization initially stimulates fossil energy consumption, it ultimately enhances the effectiveness of environmental regulations and optimizes the allocation of EISA. On the supply side, EISA significantly promotes local new energy production. However, it generates negative spatial spillover effects and inhibits the development of renewable energy in neighboring regions. Environmental regulations promote new energy production most significantly in the eastern region of the country, but they also cause similar negative spillover patterns. Marketization processes suppress new energy production overall, with pronounced regional disparities. This study contributes empirical evidence regarding spatial spillovers and regional heterogeneity in China's energy transition process. The findings may provide a scientific basis for integrating synergistic development cross-regionally, as well as optimizing conjoined environmental regulations and market-oriented policies. This study further provides novel insights into the trajectory of China's energy transition at the regional level, complementing existing literature on spatial spillover issues.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"98 ","pages":"Article 102097"},"PeriodicalIF":4.4,"publicationDate":"2025-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145419316","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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