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Session MB2 - Marchés de l'électricité : Intégration, investissement et efficacité / Electricity Markets: Integration, Investment and Efficiency

Day Monday, May 04, 2009
Room Van Houtte
President Pierre-Olivier Pineau

Presentations

03h30 PM-
03h55 PM
The Value of Unused Transmission: Estimating the Opportunity Cost for the Province of Quebec
  Pierre-Olivier Pineau, HEC Montréal, Méthodes quantitatives de gestion, Montréal, Québec, Canada, H3T 2A7

Hydro-Québec has to sell first in Quebec, at cost of service. Its opportunity cost is the unrealized profit in higher cost jurisdictions, subject to transmission constraints. Although transmission capacity is sometimes tight in North America, it is not always fully utilized. This paper investigates the value of non-utilized transmission capacity from Quebec to its deregulated neighbours.


03h55 PM-
04h20 PM
Electricity Market Integration: Economic and Environmental Outcomes
  Etienne Billette de Villemeur, University of Toulouse, Toulouse School of Economics (IDEI & GREMAQ), 21, allée de Brienne, Toulouse, France, 31000
Pierre-Olivier Pineau, HEC Montréal, Méthodes quantitatives de gestion, Montréal, Québec, Canada, H3T 2A7

Electricity markets across jurisdictions greatly vary. Integrating such different markets can lead to significant, but unevenly distributed, welfare improvements, even without including environmental gains. Therefore, integration could be opposed by some. Furthermore environmental impacts are not necessarily positive. This paper considers two jurisdictions and compares different institutional frameworks. We propose a detailed numerical illustration of the Ontario and Quebec market.


04h20 PM-
04h45 PM
A Dynamic Oligopolistic Electricity Market Model with Interdependent Segments
  Hasina Rasata, GERAD, HEC Montréal, Édifice Côte-Sainte-Catherine, 3000, chemin de la Côte-Sainte-Catherine, Montréal, Québec, Canada, H3T 2A7
Pierre-Olivier Pineau, HEC Montréal, Méthodes quantitatives de gestion, Montréal, Québec, Canada, H3T 2A7
Georges Zaccour, GERAD, HEC Montréal, Marketing, 3000, chemin de la Côte-Sainte-Catherine, Montréal, Québec, Canada, H3T 2A7

In this paper, we model a ten-period electricity market with interdependent demand, where oligopolistic generators make investments in peak- and base-load capacities. We mainly focus on capacity investment incentives as demand for electricity evolves over time. The model is calibrated with Ontario data. Two equilibrium scenarios are proposed: symmetric and asymmetric equilibrium.


04h45 PM-
05h10 PM
US and Chinese Environmental and Economic Efficiency in Coal Fired Generation
  Han Tai Wu, HEC Montréal, Intelligence D'affaire, 3000, chemin de la Côte-Sainte-Catherine , Montréal, Québec, Canada, H3T 2A7

Facing a surge in both global energy prices and internal electricity demands, China must improve the economic and environmental efficiencies of its coal powerplants. Said efficiencies between US states and Chinese provinces are compared using a self-written, Cplex based program. Variables are fuel utilisation rates, employment numbers, CO2 emission rates and amount of electricity generated.


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