impacts of wind and solar spatial diversification on its market value a case study of the chilean electricity market abstract renewable energy is expected to become the main electricity source in the world in the coming decades with solar and wind power taking a big share of the energy supply although there has been a remarkable advance on renewable energy technologies their integration is still difficult for regulators market designers and system operators due to the high variability and limited predictability of solar and wind resources measures can be adopted to ease their integration among them geographical diversification there is plenty of literature about the diversification of solar and wind resources and there is a common conclusion greater dispersion smooths out power production however literature on the effects of spatial diversification on the power system electricity prices and renewable energy market value is much scarcer this paper studies the effects of spatial diversification and questions whether integration policies are incentivizing the placement of renewable generators where they provide the highest value to the electricity system in chile using real data and a simplified dispatch model the analysis presented shows evidence of the effects of diversification on wind and solar market value in chile results suggest that spatial diversification has a strong positive effect on the market value of renewable energy especially in scenarios with active transmission and hydro storage constraints wind market value may vary up to us 10 mw h depending on the level of diversification and the spatial and temporal constraints of the system and given current storage capacity of hydro reservoirs the solar market value may increase us 5 mw h due to diversification if transmission capacity is enough even though these results must be observed with caution because they depend on the assumptions made there is an important effect of renewable spatial diversification that should be observed by regulators

investigation into transmission options for cross border power trading in asean power grid this work is a feasibility study of high voltage ac hvac and high voltage dc hvdc transmission option for the association of southeast asian nations asean power grid apg interconnections an optimal power flow a minimum cost power generation model is developed in the matpower simulation platform to perform this analysis electricity generation and consumption data are taken from the latest power development plans of individual asean countries for the evaluation of optimal cross border power flow through the interconnections results show that apg can enhance power generation from countries with abundant renewable resources to meet the growing demand at load centers in the asean member nations an annual cost is used as the output matrix for this study the analysis results reveal that in some interconnections implementing hvdc link instead of currently planned hvac could be economically beneficial for the apg the findings in this paper would serve as valuable references for the apg planners

the dark side of buyer power supplier exploitation and the role of ethical climates media increasingly accuse firms of exploiting suppliers and these allegations often result in lurid headlines that threaten the reputations and therefore business successes of these firms neither has the phenomenon of supplier exploitation been investigated from a rigorous ethical standpoint nor have answers been provided regarding why some firms pursue exploitative approaches by systemically contrasting economic liberalism and just prices as two divergent perspectives on supplier exploitation we introduce a distinction of common business practice and unethical supplier exploitation since supplier exploitation is based on power we elucidate several levels of power as antecedents and investigate the role of ethical climate as a moderator this study extends victor and cullen s 1988 ethical climate matrix according to a supply chain dimension and is summarized in an integrated conceptual model of five propositions for future theory testing results provide a frame of reference for executives and scholars who can now delineate unethical exploitation and understand important antecedents of the phenomenon better

energy security and renewable electricity trade will desertec make europe vulnerable to the energy weapon abstract solar power imports to europe from the deserts of north africa as foreseen in the desertec concept is one possible way to help decarbonising the european power sector by 2050 however this approach raises questions of threats to european energy security in such an import scenario particularly in the light of increasing import dependency and russia s use of the energy weapon in recent years in this paper we investigate the threat of north african countries using the desertec electricity exports as an energy weapon we develop and use a new model to assess the interdependence the bargaining power symmetry operationalised as costs of a disruption in a future renewable electricity trade between north africa and europe if europe maintains current capacity buffers some demand response capability and does not import much more than what is described in the desertec scenario it is susceptible to extortion and political pressure only if all five exporter countries unite in using the energy weapon europe is not vulnerable to extortion by an export cut from only one country as the european capacity buffers are sufficient to restore the power supply no single exporter country would have sustained bargaining power over europe

medium term demand for european cross border electricity transmission capacity abstract the aim of this paper is to discuss the needs for investment in electricity interconnectors in europe by 2025 we evaluate the impact of cross border transmission capacity on dispatch costs curtailment needs for renewable energy sources res on co2 emissions on hydro storage utilisation and on security of supply in terms of energy not served the analysis is performed with eupowerdispatch a minimum cost dispatch model for the evolution of the electricity generation portfolio and electricity consumption we use the latest scenario outlook and adequacy forecast of the european network of transmission system operators for electricity entso e the model results show that the planned additional cross border transmission capacity between 2010 and 2025 will reduce annual dispatch costs will have limited impact on the security of supply and will not be a significant cause of variable res curtailment however in case of more res it will reduce dispatch costs to a larger extent and will considerably reduce res curtailment needs and if demand grows at the historical rate of 2 it will be needed to maintain the current level of security of supply moreover our study shows that hydro pumping and storage and cross border transmission are partly complementary technologies

the european renewable energy target for 2030 an impact assessment of the electricity sector abstract the european union set binding targets for the reduction of greenhouse gases ghg and the share of renewable energy re in final energy consumption by 2020 the european council agreed to continue with this strategy through to 2030 by setting a re target of 27 in addition to a ghg reduction target of 40 we provide a detailed sectoral impact assessment by analyzing the implications for the electricity sector in terms of economic costs and the regional distribution of investments and shares of electricity generated from renewable energy sources res e according to the impact analysis by the european commission the 27 re target corresponds to a res e share of 49 our model based sensitivity analysis on underlying technological and institutional assumptions shows that the cost effective res e share varies between 43 and 56 secondly we quantify the economic costs of these variants and those which would be incurred with higher shares the long term additional costs for higher res e shares would be less than 1 of total system costs the third aspect relates to the regional distribution of eu wide efforts for upscaling renewables we point out that delivering high res e shares in a cost effective manner involves considerably different efforts by the member states

quantifying the long term economic benefits of european electricity system integration abstract this paper aims to quantify the long term economic benefits that arise from an increasing integration of the pan european electricity system by means of comparing model based decarbonization scenarios developed with the model limes eu it explicitly accounts for the interplay between transmission infrastructure and renewable generation capacity expansion we confirm earlier findings that on aggregate pan european transmission capacity expansion constitutes a no regret option for integrating increasing shares of variable renewables it leads to positive social returns on investment in all mitigation scenarios under analysis however the reduction in total discounted system costs stemming from transmission capacity expansion is modest in magnitude over the period 2010 2050 it reaches a maximum of 3 5 for a case with massive expansion compared to one in which the status quo remains in technical terms this means that the optimum is rather flat and taking into account regional and local benefits and distributional aspects could alter the evaluation of the economic benefits a crucial finding is that the configuration of pan european transmission infrastructure and the importance of specific country connections i e a southern versus a northern solution hinges on the relative development of specific investment costs for solar and wind technologies over the next decades

the impact of repeated interactions on supply chain contracts a laboratory study abstract in this laboratory study we investigate the interactive behaviors that develop over a perceived long term contractual relationship specifically three types of contracts are examined under a two echelon supply chain setting with stochastic demand wholesale price contracts buyback contracts and revenue sharing contracts the supply chain contracting theory has demonstrated that the simple linear price contract is inefficient whereas the latter two contracts can coordinate the channel through risk sharing and they are mathematically equivalent we propose an experimental design that controls for individual decision biases to isolate the behavioral impact of repeated negotiations our experimental results indicate that participants systematically deviate from predictions by the normative model that assumes a one shot interaction between self interested players we find that when future opportunities to punish are available social preferences for fairness and reciprocity are reinforced and reputation building behaviors are motivated to achieve long term economic benefits as a result the performance of the overall supply chain is enhanced moreover we observe that buyback contracts behave differently from revenue sharing contracts by inducing higher order quantities over time

implementing the eu renewable target through green certificate markets abstract the european parliament has agreed on a target of a 20 share of renewables in the eu s total energy consumption by 2020 to achieve the target the european council has adopted mandatory differentiated national targets for each of the member states in this paper we consider the use of green certificates to reach the renewable targets and we analyze the potential for cost reductions by allowing for trade in green certificates across member states we show that differentiated national targets cannot ensure a cost effective implementation of the overall target for the eu s renewable energy consumption trade in green certificates can ensure a cost effective distribution of renewable energy production but the national targets prevent a cost effective distribution of energy consumption nevertheless our numerical model indicates that eu wide trade in green certificates may cut the eu s total cost of fulfilling the renewable target by as much as 70 compared with a situation with no trade however the design of green certificate markets may have a large impact on the distribution of costs across countries

modeling hourly electricity dynamics for policy making in long term scenarios abstract energy policies are often related to the global effort in reducing greenhouse gas emissions through increased use of renewable energies in electricity production the impact of these policies is usually calculated by energy planning tools however the modeling methodologies most currently used are not adequate to simulate long term scenarios while considering the hourly dynamics of supply and demand this paper presents an extension of the times energy planning tool for investment decisions in electricity production that considers seasonal daily and hourly supply and demand dynamics the inclusion of these dynamics enables the model to produce more accurate results in what concerns the impact of introducing energy efficiency policies and the increased use of renewable energies the model was validated in sao miguel azores portugal for the years 2006 2009 where a comparison with real data showed that the model can simulate the supply and demand dynamics further the long term analysis shows that the inclusion of these dynamics contributes to a better assessment of the renewable energy potential suggests the postponement of investments in new generation capacity and demonstrates that using fine time resolution modeling is very valuable for the design of effective policy measures under high renewable penetration energy systems

decarbonization scenarios for the eu and mena power system considering spatial distribution and short term dynamics of renewable generation we use the multi scale power system model limes eu to explore coordinated long term expansion pathways for renewable energy re generation long distance transmission and storage capacities for the power sector of the europe and middle east north africa mena regions that lead to a low emission power system we show that ambitious emission reduction targets can be achieved at moderate costs by a nearly complete switch to re sources until 2050 if transmission and storage capacities are expanded adequately limiting transmission capacities to current levels leads to higher storage requirements higher curtailments and to an increase in temporal and spatial electricity price variations results show an escalation of electricity prices if emission reductions exceed a critical value adequate expansion of transmission and storage capacities shift this threshold from 70 to 90 emission reductions in 2050 relative to 2010

on the economics of electrical storage for variable renewable energy sources abstract the use of renewable energy sources is a major strategy to mitigate climate change yet sinn 2017 argues that excessive electrical storage requirements limit the further expansion of variable wind and solar energy we question and alter strong implicit assumptions of sinn s approach and find that storage needs are considerably lower up to two orders of magnitude first we move away from corner solutions by allowing for combinations of storage and renewable curtailment second we specify a parsimonious optimization model that explicitly considers an economic efficiency perspective we conclude that electrical storage is unlikely to limit the transition to renewable energy

is fair treatment enough augmenting the fairness based perspective on stakeholder behaviour fairness and justice are core issues in stakeholder theory although such considerations receive more attention in the normative branch of the stakeholder literature they have critical implications for instrumental stakeholder theory as well in research in the instrumental vein although the position has seldom been articulated in significant detail a stakeholder s inclination to take action against the firm or conversely to cooperate with it is often taken to be a function of its perceptions concerning the fairness or unfairness or equity or inequity of the treatment it receives in its relationship with the firm thus from various works in this domain can be distilled what might be termed a fairness based perspective on stakeholder behaviour this perspective as it currently stands assumes a high degree of homogeneity in stakeholders responses to fair unfair or munificent treatment by the firm this supposition is itself typically based on a presumption that stakeholders consistently and uniformly adhere to norms of equity and reciprocity in their relationships with firms however research developments in equity theory and social exchange theory suggest that such assumptions are likely untenable accordingly in this work after outlining the fairness based perspective on stakeholder behaviour i undertake to augment it by presenting propositions concerning the possible influences of stakeholders equity preferences and exchange ideologies on their propensities to sanction or support the firm incorporating these stakeholder traits into the fairness based perspective should enhance the predictive validity of its propositions concerning stakeholder behaviour in response to fairness or unfairness in the firm stakeholder relationship

decarbonizing europe s power sector by 2050 analyzing the economic implications of alternative decarbonization pathways abstract the european union aims to reduce greenhouse gas emissions by 80 95 in 2050 compared to 1990 levels the transition towards a low carbon economy implies the almost complete decarbonization of europe s power sector which could be achieved along various pathways in this paper we evaluate the economic implications of alternative energy policies for europe s power sector by applying a linear dynamic electricity system optimization model in over 36 scenarios we find that the costs of decarbonizing europe s power sector by 2050 vary between 139 and 633 bn 2010 which corresponds to an increase of between 11 and 44 compared to the total system costs when no co2 reduction targets are implemented in line with economic theory the decarbonization of europe s power sector is achieved at minimal costs under a stand alone co2 reduction target which ensures competition between all low carbon technologies if however renewable energies are exempted from competition via supplementary renewable energy res e targets or if investments in new nuclear and ccs power plants are politically restricted the costs of decarbonization significantly rise moreover we find that the excess costs of supplementary res e targets depend on the acceptance of alternative low carbon technologies for example given a complete nuclear phase out in europe by 2050 and politically implemented restrictions on the application of ccs to conventional power plants supplementary res e targets are redundant while in such a scenario the overall costs of decarbonization are comparatively high the excess costs of supplementary res e targets are close to zero

long run power storage requirements for high shares of renewables review and a new model abstract the purpose of this article is twofold first we review model based analyses that explore the role of power storage in energy systems with high shares of variable renewables second we introduce a new model that is specifically designed for exploring long term storage requirements the literature survey focuses on recent contributions in the peer reviewed energy economics and engineering literature we compare key characteristics of the different models provide an overview of model applications and summarize key findings on power storage requirements we also evaluate which system values of storage are covered by respective model analyses based on the literature survey we identify common findings and key model features required for a sound assessment of future storage requirements in order to raise complementary insights we introduce dieter a new dispatch and investment model the model contributes to the literature by capturing multiple system values of power storage related to arbitrage capacity and reserve provision further the model is designed as an open source tool that can be freely used and modified results of a first application of the new model are presented in a companion paper

the influence of the structure of interdependence on the response to inequity in buyer supplier relationships abstractthis research investigates the conditions under which inequity in a buyer supplier relationship influences a supplier s resource sharing with its buyer more specifically the authors examine the effects of both positive inequity and negative inequity under varying levels of interdependence magnitude and relative dependence they further examine the effect of inequity on perceived relationship performance the study includes a longitudinal survey design with perceived relationship performance reported by a second informant the study conducted within the context of japanese suppliers reporting on their relationship with u s buyers takes a nuanced view of both inequity and relative dependence by employing spline variables to disentangle potentially different effects of positive and negative inequity and relative dependence of the supplier and buyer respectively the results reveal that firms reactions to positive and negative inequity vary depending on the nature of the interdependence struct

infrastructure investments for power trade and transmission in asean 2 costs benefits long term contracts and prioritized developments abstract this study establishes a systemic approach in assessing the feasibility of power infrastructure investment for gms and apg in the asean 2 asean plus china and india region it aims to identify the financial and finance related institutional barriers of implementing such a regional power interconnection a whole system simulation model is built to assess the financial viability as well as commercial viability which imply bankability for financiers and profitability for investors respectively of new transmission projects under the optimized pattern of power trade it also determines the optimized planning of new transmission capacities according to our results the existing development plan of power transmission infrastructure in the region so called apg appears to stand as a financially and commercially viable plan however there is room for improvement in the planning in terms of timing routes and capacity of the cross border transmission lines and the gms related projects should be prioritized

an estimate of the value of lost load for ireland this paper estimates the value of short term lost load in the all island electricity market which includes the republic of ireland and northern ireland the value of lost load voll is the average willingness of electricity consumers to pay to avoid an additional period without power voll is also known as the value of security of electricity supply and is inferred using a production function approach detailed electricity use data for the republic of ireland allows us to estimate the value of lost load by time of day time of week and type of user we find that the value of lost load is highest in the residential sector in both the republic of ireland and northern ireland our results can be used to advise policy decisions in the case of supply outages and to encourage optimum supply security in the context of this study short term is taken to be a matter of hours rather than days or weeks

bridging the scales a conceptual model for coordinated expansion of renewable power generation transmission and storage abstract to analyze the challenge of large scale integration of renewables during the next decades we present a conceptual power system model that bridges the gap between long term investment allocation and short term system operation decisions it integrates dynamic investments in generation transmission and storage capacities as well as short term variability and spatial distribution of supply and demand in a single intertemporal optimization framework large scale grid topology power flow distributions and storage requirements are determined endogenously results obtained with a three region model application indicate that adequate and timely investments in transmission and storage capacities are of great importance delaying these investments which are less costly than investments in generation capacities leads to system wide indirect effects such as non optimal siting of renewable generation capacities decreasing generation shares of renewables increasing residual emissions and hence higher overall costs

optimal investment in human capital under conditions of nonstable population the paper analyses optimal investment in physical and human capital when the exogenous rate of population growth changes the growth model describes a closed economy with overlapping generations and homogeneous human capital the optimal growth path is characterized by two groups of optimality conditions a generalized golden rule for optimal investment in physical capital and a continuum of golden rules of education corresponding to the continuum of active generations these conditions for optimal investment in human capital can be interpreted in terms of the familiar equality of discounted costs and returns the model is illustrated with a numerical simulation

renewable energy sources in european energy supply and interactions with emission trading abstract this paper presents a model based approach which allows to determine the optimised structure and operation of the eu 15 electricity supply under different political and economic framework conditions with a focus on the integration of renewable energy sources for electricity generation res e in the eu 15 countries the approach is designed to take into account the characteristics of power production from both renewable and conventional sources including the technological and economic characteristics of existing plants as well as those of future capacity expansion options beyond that fuel supply structures are modelled as well as the international markets for power and co 2 certificates with their restrictions thus a profound evaluation of the exploitation of mid term renewable potentials and an assessment of the market penetration of the various renewable power generation technologies under the normative premise of a cost optimised evolution of the power system becomes possible results show that a promotion of renewable energies reduces the scarcity of co 2 emission allowances and thus lowers marginal costs of co 2 reduction up to 30 in 2030 despite the higher overall costs a diversification of the energy resource base by res e use is observed as primarily natural gas and nuclear fuels are replaced

optimal management of environmental externalities with time lags and uncertainty many environmental externalities occur with time lags that can range from a few days to several centuries in length and many of these externalities are also subject to uncertainty in this paper we examine the key features of an optimal policy to manage environmental externalities that are both lagged and stochastic we develop a two period two polluter model and obtain closed form solutions for optimal emissions levels under different combinations of damage functions and stochastic processes these solutions show that it is not obvious whether greater control should be exerted on polluters that generate externalities with longer lags or on polluters that generate externalities with shorter lags we find that the optimal ranking of polluters with respect to the length of the time lag associated with their externality will depend on a the discount rate b conditional expectations of future states of the polluted resource c persistence of the pollutant and d initial conditions

optimal interconnection and renewable targets for north west europe we present a mixed integer linear programming model for determining optimal interconnection for a given level of renewable generation using a cost minimisation approach optimal interconnection and capacity investment decisions are determined under various targets for renewable penetration the model is applied to a test system for eight regions in northern europe it is found that considerations on the supply side dominate demand side considerations when determining optimal interconnection investment interconnection is found to decrease generation capacity investment and total costs only when there is a target for renewable generation higher wind integration costs see a concentration of wind in high wind regions with interconnection to other regions

renewable electricity consumption and economic development new findings from the baltic countries abstract this study employed homogeneous and heterogeneous panel methods to examine the relationship between renewable and non renewable electricity consumption and economic development in three transition economies in the baltic region namely estonia latvia and lithuania for the period of 1992 2011 the study put forward four hypotheses to examine the renewable electricity development nexus the findings indicated that there existed a unidirectional causality from the economic development to renewable electricity consumption thus the results obtained from the statistical analyses have provided empirical evidence in support of the conservation hypothesis that postulates that economic development causes the expansion of renewable electricity consumption but not vice versa

what differences in the cultural backgrounds of partners are detrimental for international joint ventures an international joint venture implies that a firm has to cooperate with a partner with a different cultural background in this study hypotheses about which differences in national culture are most disruptive for international joint ventures were developed and tested using hofstede s five dimensions the study focused on how these dimensions affect the survival of international joint ventures as well as their incidence relative to wholly owned subsidiaries the hypotheses were tested on longitudinal data about 828 foreign entries of twenty five dutch multinational in seventy two countries between 1966 and 1994 the database which spans almost three decades was also used to provide new evidence on a key assumption of hofstede s work that cultural values are stable over time

motivators of mobilization although the possibility that a firm s stakeholders may take damaging measures against it in response to its activities has been an underlying assumption of stakeholder theory from inception the conditions that predispose stakeholders to act against firms remain largely unexplored in the literature based on work in equity theory expectancy theory and resource dependence theory we present and test hypotheses concerning stakeholders propensities to impose sanctions upon or to support firms using a vignette based experiment we found strong confirmation of the criticality of fairness in the firm stakeholder relationship stakeholder equity perceptions were unequivocally associated with the proclivity to sanction the firm or to engage in prosocial behaviours of benefit to it stakeholder expectancy perceptions and resource dependence were related to only certain forms of stakeholder action indicating that researchers should take care to differentiate between types of stakeholder response when investigating questions surrounding stakeholder mobilization our results also suggest specific avenues for stakeholder dialogue that could help firms mitigate the likelihood of stakeholders taking damaging action against them

a regulatory assessment of the electricity merchant transmission investment in eu current eu energy policy calls for a well integrated internal energy market by 2020 aimed at achieving interconnection of at least 10 of the installed electricity production capacity for all member states ms in 2030 this target will increase to 15 expanding to include the construction of electricity highways to connect ms and non eu neighbouring countries in order to fulfil energy and climate goals while most cross borders interconnections are envisaged as regulated lines private players will play a significant role in increasing interconnection via the merchant transmission investment mti exception by reviewing the procedural and substantive treatment of the existing five mti interconnectors this paper evaluates whether the existing legal and regulatory framework adopted in the eu represents a suitable model for the development of cross border interconnections further the paper explores the mti exception as a potential model for cross border interconnection with non eu neighbouring countries this analysis demonstrates that mti s potential contribution would not significantly impact the achievement of the 2020 target moreover the existing regulatory framework for merchant lines among ms is not apt for mti developed between ms and non eu countries since the interconnection developed with non eu neighbouring countries to date has necessitated non market characteristics too extraordinary to be practical on a continuing basis

estimation of optimal human capital accumulation parameters for the netherlands abstract using the theory of optimal investments in human capital in general and rosen s 1975 1976 version of it in particular we tried to model and explain aggregate life cycle income profiles for the netherlands in 1965 1972 and 1979 the model allowed us to estimate and impute human capital accumulation parameters and paths changes in rates of return depreciation rates the value of the human capital stock and of lifetime human wealth could be identified and compared for the sample years it was found that in terms of some of these parameters public sector employees gained compared with private sector employees and employees with higher vocational training gained ground over university trained employees

reactions to perceived inequity in u s and dutch interorganizational relationships in an empirical examination of inequity in interorganizational relationships we found similarities and differences in dutch and u s automobile dealers reactions to inequity in their relationships with their automobile suppliers as predicted by equity theory both positive and negative inequity have detrimental effects on the reactions of dutch firms in contrast u s firms do not react negatively to positive inequity only negative inequity has deleterious effects

assessment of transformation strategies for the german power sector under the uncertainty of demand development and technology availability abstract the long term energy strategy issued by the german government in 2010 and 2011 embraces a substantial reduction of co 2 emissions and high shares of renewable energy in electricity production along with energy efficiency improvements and an accelerated nuclear phase out while several studies illustrate scenarios reaching these targets there are substantial uncertainties pertaining to key assumptions particularly long term electricity demand and the large scale availability of offshore wind and carbon capture and storage ccs this paper explores conditions under which model based scenarios for the german electricity sector comply with the official targets for co 2 emission reductions and renewable shares we apply the energy system model limes d which allows for a joint optimization of generation and transmission capacities the results indicate that reducing electricity demand plays a crucial role for attaining the government s targets scenarios for which either offshore wind or ccs is not available show an even stronger need for a decreasing electricity demand to reach the targets and a different pattern of transmission capacity expansion than is the case with full technology availability hence a broad technology portfolio could in turn hedge against future power demand increases that may challenge the joint attainment of the german decarbonization and renewable energy targets