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

Raphael J. Heffron, Marc Fabian Körner (Lead / Corresponding author), Theresia Sumarno, Jonathan Wagner, Martin Weibelzahl, Gilbert Fridgen

    Research output: Contribution to journalArticlepeer-review

    13 Citations (Scopus)

    Abstract

    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.

    Original languageEnglish
    Article number105663
    JournalEnergy Economics
    Volume107
    Early online date29 Oct 2021
    DOIs
    Publication statusPublished - Mar 2022

    Keywords

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

    ASJC Scopus subject areas

    • Economics and Econometrics
    • General Energy

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