Towards a second edition of the “The Economics of the electricity sector”

In 2013 the book “The Economics of the electricity sector”, edited by Pippo Ranci and Guido Cervigni was published as part of the Loyola de Palacio Series on European Energy Policy of the Florence School of Regulation.

Seven years on, the way in which the European electricity sector works has changed significantly, due to technological developments and the almost-full implementation of the Third Energy Package. Further changes are expected as a result of the implementation of the Clean Energy Package, of the EU’s commitment to achieve carbon-neutrality by 2050 and of the ambitious energy and climate policy targets for 2030 which are instrumental to achieve that goal.

Therefore, this is the right time to investigate:

• the relevant scenarios and their implications for the way Europe will meet its energy needs;
• how much of the current electricity market design and trading arrangements will need to be adapted to the new reality;
• the most appropriate risk allocation between investors in energy infrastructure and consumers;
• the consequences in terms of profitability and market power, if any, resulting from those changes.

To address these issues, work on a second edition of the book will soon start.

The way in which the energy sector will develop in the future is probably more uncertain than ever before. Therefore, the FSR intends to launch a common reflection, involving selected stakeholders from all constituencies of the energy sector. Such a reflection would be instrumental in delivering a book that, while maintaining the textbook character of the first edition, would address the most relevant and defining aspects of the future electricity sector.

For further information, please contact: Alberto Pototschnig