TY - JOUR
T1 - How different electricity pricing systems affect the energy trilemma
T2 - Assessing Indonesia's electricity market transition
AU - Heffron, Raphael J.
AU - Körner, Marc Fabian
AU - Sumarno, Theresia
AU - Wagner, Jonathan
AU - Weibelzahl, Martin
AU - Fridgen, Gilbert
N1 - Funding Information:
The authors gratefully acknowledge the financial support of the Kopernikus-Project “SynErgie” of the Federal Ministry of Education and Research of Germany (BMBF) and the project supervision of the project management organization Projektträger Jülich (PtJ).
Funding Information:
We gratefully acknowledge the Luxembourg National Research Fund (FNR) and PayPal for their support of the PEARL project “P17/IS/13342933/PayPal-FNR/Chair in DFS/Gilbert Fridgen” that made this paper possible.
Publisher Copyright:
© 2021
PY - 2022/3
Y1 - 2022/3
N2 - 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.
AB - 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.
KW - Electricity market liberalization
KW - Electricity pricing system
KW - Energy trilemma
KW - Indonesia
KW - Renewable energy sources
UR - http://www.scopus.com/inward/record.url?scp=85123787654&partnerID=8YFLogxK
U2 - 10.1016/j.eneco.2021.105663
DO - 10.1016/j.eneco.2021.105663
M3 - Article
AN - SCOPUS:85123787654
SN - 0140-9883
VL - 107
JO - Energy Economics
JF - Energy Economics
M1 - 105663
ER -
