How different electricity pricing systems affect the energy trilemma: Assessing Indonesia's electricity market transition

Heffron, Raphael J.; Körner, Marc-Fabian; Sumarno, Theresia; Wagner, Jonathan; Weibelzahl, Martin; Fridgen, Gilbert

doi:10.1016/j.eneco.2021.105663

Article (Scientific journals)

How different electricity pricing systems affect the energy trilemma: Assessing Indonesia's electricity market transition

Heffron, Raphael J.; Körner, Marc-Fabian; Sumarno, Theresia et al.

2022 • In Energy Economics, 107, p. 105663

Peer reviewed

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https://hdl.handle.net/10993/53784

DOI
10.1016/j.eneco.2021.105663

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Keywords :

Electricity pricing system; Electricity market liberalization; Energy trilemma; Indonesia; Renewable energy sources

Abstract :

[en] Indonesia's current energy policy, which relies on cheap fossil fuels and focuses on two out of the three horns of the energy trilemma, namely, energy security and energy equity, may impede its efforts to higher shares of renewable energy sources. This paper develops three generic models that allow policymakers to analyze the impact of introducing a wholesale electricity market managed under either a nodal, a zonal, or a uniform pricing system on the three horns of the energy trilemma. It evaluates the models using a simplified network representation of the Indonesian electricity sector. The results indicate that under the model assumptions made, and given the used input parameters as well as the used metrics for the three horns of the energy trilemma, a uniform pricing system might help Indonesia to balance its energy trilemma.

Disciplines :

Energy
Management information systems

Author, co-author :

Heffron, Raphael J.

Körner, Marc-Fabian

Sumarno, Theresia

Wagner, Jonathan

Weibelzahl, Martin

Fridgen, Gilbert ; University of Luxembourg > Interdisciplinary Centre for Security, Reliability and Trust (SNT) > FINATRAX

External co-authors :

yes

Language :

English

Title :

How different electricity pricing systems affect the energy trilemma: Assessing Indonesia's electricity market transition

Publication date :

2022

Journal title :

Energy Economics

ISSN :

0140-9883

Volume :

107

Pages :

105663

Peer reviewed :

Peer reviewed

Focus Area :

Security, Reliability and Trust

Additional URL :

https://www.sciencedirect.com/science/article/pii/S014098832100520X

FnR Project :

FNR13342933 - Paypal-fnr Pearl Chair In Digital Financial Services, 2019 (01/01/2020-31/12/2024) - Gilbert Fridgen

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since 13 January 2023

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