We consider a simple model of energy saving investments under uncertainty of energy costs. Adjustment delays in replacing energy-intensive capital follow from two natural elements: uncertainty and heterogeneity of the existing capital structure. They imply a simple dichotomy where short-run output contracts, but the long-run output recovers and increases above the initial output, despite the in...

The use of renewable generation and energy storage with actively managed curtailment schemes is investigated. A heuristic optimisation algorithm is presented that maximises the revenue available to the operator of a storage system that time-shifts curtailed generation, and trades by buying and selling power on an electricity market. The algorithm is applied to a case study of a distribution net...

Vertically integrated network firms own a natural monopoly infrastructure and compete in downstream markets for products which use the services of this facility as an essential input. Such a firm can shift costs between the network and final product sectors to foreclose efficient entry into the downstream market without triggering the traditional incremental cost test for cross-subsidies. We pr...

Fossil energy is getting less and this study aims to determine the effect of substitution fossil with new renewable on monetary value electricity subsidies in Indonesia. Rezki (2012) stated that level gross domestic product (GDP) per capita a country Southeast Asia had positive relationship consumption. Indonesia relatively small user capita, consumption only equivalent quarter world average (D...

Despite its widely recognized importance, electricity is not yet available everywhere, and there are many areas of the globe which still depend on alternative sources of energy such as wood, charcoal and kerosene. In contrast, the USA was the first country to be fully electrified. This article explores the current challenges faced by developing countries, presents the historical evidence from t...

Energy costs are notoriously uncertain but what is the effect of this on energysaving investments? We find that real-option frictions imply a novel equilibrium response to increasing but uncertain energy costs: early investments are cautious but ultimately real-option frictions endogenously vanish, and the activity affected by higher energy costs fully recovers. We use electricity market data f...

For about 35 years, governments in many countries all over the world have been attempting to foster the development and diffusion of renewable energy technologies (RETs), especially for electricity generation purposes. Support systems have changed over time, from the R&D centred policies of the mid-1970s to more market oriented measures adopted in many countries in the 1990s and 2000s. One exam...

This study assesses Thailand’s energy policies on renewable electricity generation and energy efficiency in industries and buildings. The CO2 emissions from power generation expansion plans (PGEPs) are also evaluated. The PGEPs of CO2 reduction targets of 20% and 40% emissions are also evaluated. Since 2008 Thai government has proposed the Alternative Energy Development Plan (AEDP) for renewabl...

In this study a mixed integer linear programming (MILP) model is created for the design (i.e. technology selection, unit sizing, unit location, and distribution network structure) of a distributed energy system that meets the electricity and heating demands of a cluster of commercial and residential buildings while minimising annual investment and operating cost. The model is used to analyse th...