electricity

Retail Pricing in Colombia to Support the Efficient Deployment of Distributed Generation and Electric Vehicles

Electricity tariff reforms will be an essential part of the clean energy transition. Existing tariffs rely on average cost pricing and often set a price per unit that exceeds marginal cost. The higher price encourages over-adoption of residential …

Market Power and Incentive-Based Capacity Payment Mechanisms

Capacity markets provide guaranteed payments to electricity generation unit owners for having the firm capacity to produce electricity. Historically, these markets are plagued by the weak incentives they provide for plants to be available during …

Why are Connection Charges so High? An Analysis of the Electricity Sector in Sub-Saharan Africa

This study develops and structurally estimates a model of household and electric utility behavior to describe how the low access rates and high connection charges that are common in the Sub-Saharan Africa region arise from regulated electricity …

Market Power in a Hydro-Dominated Wholesale Electricity Market

Concerns about market power have led to regulatory constraints on the price-setting process in nearly all wholesale electricity markets around the world. We study the conditions that led to the exercise of market power in the Colombian wholesale …

Diagnosing the Causes of the Recent El Niño Event and Recommendations for Reform

In this report we identify the key drivers of observed market outcomes in the Colombian electricity supply industry during the fourth quarter of 2015 and first quarter of 2016, the time period covered by the most recent El Niño Event. We analyze how …

Price Perception and Electricity Demand with Nonlinear Tariffs

Increasing block tariffs for electricity and water provide a subsidy for low users and a conservation incentive for high users. However, their effectiveness may depend on both how well consumers understand the nonlinear structure and how attentive …

Efficiency and Equity Effects of Electricity Metering

Many households lack meters to measure their electricity or water consumption. I show that provision of electricity meters leads to a large reduction in electricity consumption over the first four months following meter installation. This is …

Climate Change and Non-Residential Electricity Consumption in Colombia

More than two thirds of electricity consumption in the world is for commercial and industrial use. In this paper I estimate the relationship between non-residential electricity consumption and short-term weather fluctuations. I use a panel of daily …

Infrastructure Quality and the Subsidy Trap

Electricity and water are often subsidized in developing countries to increase their affordability for low-income households. Ideally, such subsidies would create sufficient demand in poor neighborhoods to encourage private investment in their …

How Do Firms Exercise Unilateral Market Power? Empirical Evidence from a Bid-Based Wholesale Electricity Market