Market design and energy market assessment
Microeconomix provides advice on energy related issues to public and private sector clients. Our areas of specialization include electricity, carbon, gas and oil and cover production, networks, storage, trading and retail. We have an extensive knowledge of European energy markets' operation (in particular gas and electricity). Microeconomix assists utilities, independent energy producers and regulators in assessing the potential effects of various institutional models and arrangements. We make sure that the rules governing for instance system operations, transmission, bidding and contracting are efficient and compatible with effective competition.
Market design and implementation are key issues in the course of energy markets' restructuring. Microeconomix helps its clients during the implementation phase of new models and institutional arrangements and following that phase as new problems and issues might stand out. We follow and contribute to the development of new energy models, mechanisms and institutional arrangements. Those solutions support and foster competition in public utility industries and help to allocate scarce resources (such as electricity transmission capacity). They also insure that decentralized decisions are compatible with system-wide reliability and capacity adequacy. Among the issues to be considered are:
- Energy wholesale markets and ancillary services: power exchanges, pools, balancing markets, reserve markets and provision,
- Power system reliability and generation adequacy: security rules, generation capacity markets, forward market development and contracting,
- Transmission system access, congestion management, pricing and expansion.
These issues are considered both at the national level and European level in the perspective of European markets integration.
Microeconomix is experienced in energy market assessments. Our professionals analyze quantitatively and econometrically the evolution of prices to determine factors contributing to the observed evolution. Our team has experience in quantitative research techniques from data collection through to multivariate analysis. We provide economic consulting on forecasting prices and energy flows, optimizing energy portfolio, advising strategic investments in new infrastructure and long-term contracts. We evaluate the impact of regulatory interventions, such as price caps or CO2 market rules, on energy markets. We also assess the economic impact of large scale renewable energies (wind, solar) on electricity markets.
