Electricity Market Reforms Economics and Policy Challenges
With the global demand for energy skyrocketing, over the past twenty years many countries have restructured their electric power industries, typically moving from a regulated monopoly to a competitive market structure. The results of these reforms vary si
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Lev S. Belyaev
Electricity Market Reforms Economics and Policy Challenges
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Lev S. Belyaev Siberian Branch, Energy Systems Institute Russian Academy of Sciences 664033 Irkutsk, Russia [email protected]
ISBN 978-1-4419-5611-8 e-ISBN 978-1-4419-5612-5 DOI 10.1007/978-1-4419-5612-5 Springer New York Dordrecht Heidelberg London Library of Congress Control Number: 2010935847 © Springer Science+Business Media, LLC 2011 All rights reserved. This work may not be translated or copied in whole or in part without the written permission of the publisher (Springer Science+Business Media, LLC, 233 Spring Street, New York, NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in connection with any form of information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed is forbidden. The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights.
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Acknowledgement
The author is very grateful to the corresponding member of RAS N.I. Voropai, to Professors A.P. Chernikov, I.I. Golub, L.P. Padalko, S.I. Palamarchuk, B.D. Syutkin, and V.I. Zorkaltsev for reading the manuscript and making valuable remarks that facilitated its improvement, and also to colleagues Doctors L.Yu. Chudinova, V.V. Khudyakov, O.V. Marchenko, S.V. Podkovalnikov, V.A. Saveliev, and G.B. Slavin, whose joint works contributed to the writing of the book. Special thanks are extended to Professors Ferdinand Banks, Dorel Soares Ramos, Hugh Rudnick, Steven Stoft, and Dr. Marcel Lamoureux for the presented materials and consultations on the electricity markets in the USA, South America, and Western Europe. The author expresses an exclusive gratitude to L.K. Rogova, O.M. Kovetskaya, and E.G. Lapteva for preparation of the manuscript for publication and to V.P. Ermakova, M.V. Ozerova, and N.V. Zhitova for its translation into English.
Contents
1 Introduction ������������������������������������������������������������������������������������������������� 1 2 E lectric Power Systems, Their Properties, and Specific Features ���������� 7 2.1 General Definitions and Classification of EPSs ���������������������������������� 7 2.2 Benefits of Creating and Interconnecting EPSs ����������������������������������� 9 2.3 Properties of EPSs ������������������������������������������������������������������������������� 15 2.4 Electric Power Industry in Planned and Market Economies ��������������� 23 3 E lectric Power Industry in the Context of Microeconomics ������������������� 31 3.1 Basic Notions of Microeconomics ������������������������������������������������������� 31 3.1.1 Production Cost ����������������������������
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