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Lunch seminar

Lunch seminar with Peter Karnøe

CET is happy to announce the upcoming seminar with Peter Karnøe, professor in planning from Aalborg University Copenhagen.

Main content

Performing market models – re-performing society: Competing electricty market designs and implications for governance and agency

Peter Karnøe, Aalborg University Copenhagen, Project Leader of IREMB

Electricity systems are seldom coherent and smoothly performing entities. Their system building activities stem from assembling heterogeneous entities, and tends to be rife with endogenous contradiction and exogenous tensions.

The Danish energy system transition is, like other countries linked to the Nordpool electricity market, faced with a problematic situation of ‘missing money for investments’ due to issues of overcapacity, subsidy schemes, low carbon prices and merit-order effects, while needing the investments to decarbonize the energy system, to meet the political goal of making a low-carbon society by 2050. The prices made from the current electricity market designs can make a competitive allocation of electricity generation, but they are surprisingly inadequate in securing prices for the necessary investments in capacity and decarbonization (plus storage, energy savings, sector integration and electricification etc.). Strangely the new collective problems are linked to the reforms making the markets, and the decarbonization reforms linked to climate change policies. The decarbonization reforms subsidized wind power and the zero-marginal cost technologies created the merit-order effect that lowered the electricity prices. And now the electricity markets must be reformed in order to serve the new technology mix and make prices that are also incentivizing investments.

This talk argues that electricity market arrangements must be seen as always incomplete and partial governance instruments, that renders some tensions and contradictions visible and governable while ignoring others. With this in mind different electricity market models are discussed in relation to their wider implications for generating concerns and policy objects for electricity and energy system governance.

 

The seminar will take place at the 9th floor meeting room, Social Sciences building.

Lunch will be served, so please let ut know you are coming by sending an e-mail to karin.lillevold@uib.no