Alternative designs for the management of electric thermal losses, December 2012.
The paper addresses the problem of the management of electric thermal losses. We analyze how a specific design incentivizes the Network Operators to increase network efficiency. We consider a single line model where the consumption is located at the South and the production at the North. The first-best outcome is computed to show the importance of thermal losses in the merit order of different production plants located at different nodes.
We then focus on distribution networks as they are more energy-consuming than high voltage transport networks. We compare two types of management implemented in Europe and compare their impact on the optimal level of consumption and investment. Taking into account the price elasticity of electricity, the most efficient way to decrease the thermal losses leads to let Distribution Network Operators be in charge of managing thermal losses.
Promoting Renewable Energy in a Common Market, May 2012, co-written with Wilfried Sand-Zantman.
This article analyzes the impact of feed-in tariffs in an open economy model. We consider a situation where different types of energy sources, renewable and non renewable, are used in each of two countries. We then study the impact of asymmetric feed-in policies on equilibrium production levels, prices, trade flows and social welfare.
First, we show that a non-cooperative choice of feed-in policies tends to increase the production of renewable energy and change the international flows of energy compared to the social optimum. Then, we derive the optimal uniform coordinated policy and show that when interconnections are unconstrained, coordinated strictly dominates non-coordinated policies. Lastly, we look at the impact of limited international connections on the decision to choose uniform feed-in tariffs across countries.
Connection pricing and universal service obligations in distribution networks, April 2013, co-written with Claude Crampes.
The paper provides an economic view on how the connection to a distribution network should be priced when the operator considers the spatial distribution of consumers. It highlights the impact of public service constraints on the investment in service quality, the size of the network and the connection fee. The main ingredient is the geographical dispersion of potential consumers in the distribution area and the costs linked to this dispersion as opposed to those common to all connected customers. We first determine the optimal size of the network. Its characteristics lead to a price structure undesirable from two points of view: i) the net profit of the operator is negative, ii) the price paid proportionally to distance can be viewed as discriminatory by politicians who favor “postage stamp”. We then successively determine the second-best pricing policy under a budget constraint and an intra-zone price adjustment. Finally, we analyze the redistributive effects of two-part pricing if the operator has the obligation to serve a certain number of consumers and to recoup its cost.
Pertes d’énergie dans les réseaux de distribution d’électricité, (in French) June 2009.
A comparison: genetic matching vs traditional matching methods, (available upon request) (with Daniel Coublucq), June 2009