Be Wary of Paying Wounded Bulls – Capacity Markets in Australia's National Electricity Market*.
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| Title: | Be Wary of Paying Wounded Bulls – Capacity Markets in Australia's National Electricity Market*. |
|---|---|
| Authors: | Nelson, Tim1 (AUTHOR), Gilmore, Joel1 (AUTHOR), Nolan, Tahlia1 (AUTHOR) t.nelson@griffith.edu.au |
| Source: | Economic Papers. Mar2023, Vol. 42 Issue 1, p72-91. 20p. |
| Subject Terms: | Energy shortages, Aging in plants, Energy industries, Wholesale prices, Electricity markets |
| Geographic Terms: | Australia |
| Abstract: | Australia's Energy Security Board is currently considering whether to pivot the east‐coast Australian National Electricity Market from an energy‐only market to include some form of capacity remuneration. This discussion is occurring during an unprecedented energy crisis where the wholesale market was suspended following a 275% increase in underlying wholesale energy prices. This article unpacks the root causes of the current energy crisis and how a traditional capacity market would have been ineffective in addressing it. We find that a traditional capacity market may provide windfall gains to wounded bull coal generators and be counterproductive in driving new investment in dispatchable technologies. Our recommendation is that policy‐makers should focus on utilising existing regulatory tools and a capacity reserve to insure against the unanticipated failures of ageing coal plants. [ABSTRACT FROM AUTHOR] |
| Copyright of Economic Papers is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
| Database: | Education Research Complete |
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| Header | DbId: ehh DbLabel: Education Research Complete An: 162509949 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 0 |
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| Items | – Name: Title Label: Title Group: Ti Data: Be Wary of Paying Wounded Bulls – Capacity Markets in Australia's National Electricity Market*. – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Nelson%2C+Tim%22">Nelson, Tim</searchLink><relatesTo>1</relatesTo> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Gilmore%2C+Joel%22">Gilmore, Joel</searchLink><relatesTo>1</relatesTo> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Nolan%2C+Tahlia%22">Nolan, Tahlia</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> t.nelson@griffith.edu.au</i> – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Economic+Papers%22">Economic Papers</searchLink>. Mar2023, Vol. 42 Issue 1, p72-91. 20p. – Name: Subject Label: Subject Terms Group: Su Data: <searchLink fieldCode="DE" term="%22Energy+shortages%22">Energy shortages</searchLink><br /><searchLink fieldCode="DE" term="%22Aging+in+plants%22">Aging in plants</searchLink><br /><searchLink fieldCode="DE" term="%22Energy+industries%22">Energy industries</searchLink><br /><searchLink fieldCode="DE" term="%22Wholesale+prices%22">Wholesale prices</searchLink><br /><searchLink fieldCode="DE" term="%22Electricity+markets%22">Electricity markets</searchLink> – Name: SubjectGeographic Label: Geographic Terms Group: Su Data: <searchLink fieldCode="DE" term="%22Australia%22">Australia</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: Australia's Energy Security Board is currently considering whether to pivot the east‐coast Australian National Electricity Market from an energy‐only market to include some form of capacity remuneration. This discussion is occurring during an unprecedented energy crisis where the wholesale market was suspended following a 275% increase in underlying wholesale energy prices. This article unpacks the root causes of the current energy crisis and how a traditional capacity market would have been ineffective in addressing it. We find that a traditional capacity market may provide windfall gains to wounded bull coal generators and be counterproductive in driving new investment in dispatchable technologies. Our recommendation is that policy‐makers should focus on utilising existing regulatory tools and a capacity reserve to insure against the unanticipated failures of ageing coal plants. [ABSTRACT FROM AUTHOR] – Name: AbstractSuppliedCopyright Label: Group: Ab Data: <i>Copyright of Economic Papers is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.) |
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| RecordInfo | BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.1111/1759-3441.12374 Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 20 StartPage: 72 Subjects: – SubjectFull: Energy shortages Type: general – SubjectFull: Aging in plants Type: general – SubjectFull: Energy industries Type: general – SubjectFull: Wholesale prices Type: general – SubjectFull: Electricity markets Type: general – SubjectFull: Australia Type: general Titles: – TitleFull: Be Wary of Paying Wounded Bulls – Capacity Markets in Australia's National Electricity Market*. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Nelson, Tim – PersonEntity: Name: NameFull: Gilmore, Joel – PersonEntity: Name: NameFull: Nolan, Tahlia IsPartOfRelationships: – BibEntity: Dates: – D: 01 M: 03 Text: Mar2023 Type: published Y: 2023 Identifiers: – Type: issn-print Value: 08120439 Numbering: – Type: volume Value: 42 – Type: issue Value: 1 Titles: – TitleFull: Economic Papers Type: main |
| ResultId | 1 |
