Regional Economics: Theory and Practice
 

Implementing the system of multifactorial economic analysis of national power markets in the context of the CIS: Key results

Vol. 16, Iss. 7, JULY 2018

Received: 25 April 2018

Received in revised form: 14 May 2018

Accepted: 21 May 2018

Available online: 17 July 2018

Subject Heading: ECONOMIC-MATHEMATICAL MODELING

JEL Classification: F42, F47, P11, P27

Pages: 1338–1354

https://doi.org/10.24891/re.16.7.1338

Mustafinov R.K. International Institute of Energy Policy and Diplomacy (MGIMO-University), Moscow, Russian Federation
mustafinovruslan@gmail.com

https://orcid.org/0000-0002-5279-0839

Importance The article presents principles of development and implementation results of the system of Multifactorial Economic Analysis of National Power Markets.
Objectives The study focuses on development of the system of Multifactorial Economic Analysis of National Power Markets and its further application to the national economies of the CIS.
Methods The paper rests on economic and mathematical methods and analysis of official statistics.
Results The fragmentation of the USSR synchronous zone transformed a number of energy security challenges. The cooperation between countries changed according to capitalist principles. The main imbalances were identified. That revealed a number of differences, like economic situation, level of resource self-sufficiency, and infrastructure. The final results are adjusted based on the criteria of institutional development.
Conclusions The reliability of the energy system is improved through the integration of power sectors that also encourages the development of cross border economic and political cooperation. Furthermore, the supranational and national priorities underpin the intercountry commercial and technological infrastructure development, which is limited by energy security concepts. The common electricity market serves as a basis for interstate commercial infrastructure. Reintegration that relies on principles of parity in the collective decision making process is realized through the creation of the common electricity market. The above mentioned concept provides instruments to monitor and detect local disproportions in order to maximize the profits of the integration.

Keywords: energy security, CIS, integration processes

References:

  1. Ringler P., Keles D., Fichtner W. How to Benefit from a Common European Electricity Market Design. Energy Policy, 2017, vol. 101, pp. 629–643. URL: Link
  2. Newbery D., Strbac G., Viehoff I. The Benefits of Integrating European Electricity Markets. Energy Policy, 2016, vol. 94, pp. 253–263. URL: Link
  3. Hu J., Harmsen R., Crijns-Graus W. et al. Identifying Barriers to Large-Scale Integration of Variable Renewable Electricity into the Electricity Market: A Literature Review of Market Design. Renewable and Sustainable Energy Reviews, 2018, vol. 81, part 2, pp. 2181–2195. URL: Link
  4. De Menezes L.M., Houllier M.A. Reassessing the Integration of European Electricity Markets: a Fractional Cointegration Analysis. Energy Economics, 2016, vol. 53, pp. 132–150. URL: Link
  5. Hawker G., Bell K., Gill S. Electricity Security in the European Union—The Conflict between National Capacity Mechanisms and the Single Market. Energy Research & Social Science, 2017, vol. 24, pp. 51–58. URL: Link
  6. China Energy Policy, Laws and Regulation Handbook. Vol. 1. Strategic Information and Basic Laws. Ser.: World Business and Investment Library. Lulu.com, 2015, 308 p.
  7. Eberhard A., Kolker J., Leigland J. South Africa's Renewable Energy IPP Procurement Program: Success Factors and Lessons. Washington, World Bank Group, 2014, 56 p. URL: Link
  8. Eberling G.G. Future Oil Demands of China, India, and Japan: Policy Scenarios and Implications. Lanham, Lexington Books, 2014, 233 p.
  9. Energy Security and Global Politics. The Militarization of Resource Management. 1-st edition. Ed. by Moran D., Russel J.A. London, New-York, Routledge, 2008, 272 p.
  10. Fiorentino R., Vendeja L., Toqueboeuf C. The Changing Landscape of Regional Trade Agreements: 2006 Update. Geneva, World Trade Organization, 2007. URL: Link
  11. Gauche P., von Backström T.W., Brent A.C. A Concentrating Solar Power Value Proposition for South Africa. Journal of Energy in Southern Africa, 2013, vol. 24, no. 1. URL: Link
  12. Finon D., Romano E. Electricity Market Integration: Redistribution Effect versus Resource Reallocation. Energy Policy, 2009, vol. 37, iss. 8, pp. 2977–2985. URL: Link
  13. Antweiler W. Cross-Border Trade in Electricity. Journal of International Economics, 2016, vol. 101, pp. 42–51. URL: Link
  14. Keppler J.H. Rationales for Capacity Remuneration Mechanisms: Security of Supply Externalities and Asymmetric Investment Incentives. Energy Policy, 2017, vol. 105, pp. 562–570. URL: Link
  15. De Villemeur E.B., Pineau P.-O. Regulation and Electricity Market Integration: When Trade Introduces Inefficiencies. Energy Economics, 2012, vol. 34, iss. 2, pp. 529–535. URL: Link
  16. D'Aertrycke G.M., Ehrenmann A., Smeers Y. Investment with Incomplete Markets for Risk: The Need for Long-Term Contracts. Energy Policy, 2017, vol. 105, pp. 571–583. URL: Link
  17. Kyritsis E., Andersson J., Serletis A. Electricity Prices, Large-Scale Renewable Integration, and Policy Implications. Energy Policy, 2017, vol. 101, pp. 550–560. URL: Link
  18. Grimm V., Martin A., Schmidt M. et al. Transmission and Generation Investment in Electricity Markets: The Effects of Market Splitting and Network Fee Regimes. European Journal of Operational Research, 2016, vol. 254, iss. 2, pp. 493–509. URL: Link
  19. Zipp A. The Marketability of Variable Renewable Energy in Liberalized Electricity Markets – an Empirical Analysis. Renewable Energy, 2017, vol. 113, pp. 1111–1121. URL: Link
  20. Dagoumas A.S., Koltsaklis N.E., Panapakidis I.P. An Integrated Model for Risk Management in Electricity Trade. Energy, 2017, vol. 124, pp. 350–363. URL: Link

View all articles of issue

 

ISSN 2311-8733 (Online)
ISSN 2073-1477 (Print)

Journal current issue

Vol. 16, Iss. 10
October 2018

Archive