Energy Markets

IEEFA Research

IEEFA Update: A Rush to Subsidies as Power Plants in Europe Face an Existential Threat

IEEFA Update: A Rush to Subsidies as Power Plants in Europe Face an Existential Threat

Paying Producers for Electricity They Might Never Generate

  So-called capacity markets are driving what appears to be a major new trend in energy policy across Europe: More public subsidies for electric utilities. Utilities may get—but not necessarily need or deserve—high-level government support for a variety of reasons, including for their role in equity markets, where they supply returns and dividends for pension […]

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More News and Commentary

IEEFA India: A Momentous Solar Event

Signs of a Fundamental Market Shift; Implications for Emerging Markets Everywhere

A matter of hours after we commented this week on a record low bid for solar project development in India, that record fell again. The three winning bids for the 750MW auction, by Mahindra Renewables, Acme Solar, and Solenergi Power, came in at below Rs2.97-Rs2.979/kWh. Bidding opened at Rs3.59-3.64/kWh. The results, for rights to develop […]

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IEEFA Mexico: What Can Happen When an Emerging Market Opens Up to Wind and Solar

IEEFA Mexico: What Can Happen When an Emerging Market Opens Up to Wind and Solar

Two Big Auctions in 2016 Were Heavily Oversubscribed and Resulted in Record Low Prices

Twice in 2016 Mexico held two renewable power auctions that raised significant investor participation. The most recent, in September, saw 23 winning bids out of a pool of 57 to build renewable projects worth $4 billion for 2,871 megawatts of new capacity. More important, the average price at the auctions was US$33.47 per megawatt hour, […]

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IEEFA Update: A Rush to Subsidies as Power Plants in Europe Face an Existential Threat

IEEFA Update: A Rush to Subsidies as Power Plants in Europe Face an Existential Threat

Paying Producers for Electricity They Might Never Generate

  So-called capacity markets are driving what appears to be a major new trend in energy policy across Europe: More public subsidies for electric utilities. Utilities may get—but not necessarily need or deserve—high-level government support for a variety of reasons, including for their role in equity markets, where they supply returns and dividends for pension […]

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IEEFA Report: Spain’s Outmoded Capacity Payment Structure Encourages Wasteful Subsidies for Coal and Gas, Thwarts Electricity-Sector Modernization

Reforms Should Include an Interconnected Grid, an Independent Regulator, and a More Transparent Market

Dec. 13, 2016 (IEEFA.org) – The Institute for Energy Economics and Financial Analysis (IEEFA) published a brief today showing how Spain provides inflated subsidies to owners of coal- and gas-fired power plants through an expensive electricity-sector capacity market. A dozen European countries, including France, Germany, Italy and the U.K., are either considering or already have […]

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‘The Train to a Global Clean-Energy Future Has Already Left the Station’

Matthew Daily for the Associated Press: President-elect Donald Trump will not derail progress made in fighting climate change and creating clean-energy jobs, the head of the Environmental Protection Agency insisted on Monday in arguing “the inevitability of our clean energy future is bigger than any one person or nation.” EPA chief Gina McCarthy said the […]

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On the Blogs: U.S. Department of Energy Sees Natural Gas and Renewables Continuing to Supplant Coal

Robert Walton for Utility Dive: The U.S. Department of Energy’s National Renewable Energy Laboratory’s new report projects an energy supply future that is becoming a more stable vision: one where natural gas prices remain relatively low in the mid-term, and the declining cost of renewables combine to help the United States reduce emissions. Coal, for […]

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Regardless of Who’s Living in the White House, Coal Is at the Mercy of Competition

Clifford Krauss and Michael Corkery for the New York Times: The United States coal industry and the jobs that support it have been in decline for decades as a result of environmental concerns, automation in mining and slowdowns in manufacturing industries that burned coal for power. And these days, no matter who is president, coal […]

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