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№1 слайд![Electricity markets Natural](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img0.jpg)
Содержание слайда: Electricity markets
Natural Monopoly model
№2 слайд![Overview Special features](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img1.jpg)
Содержание слайда: Overview
Special features
Stages of electricity production
Production function and costs
Natural monopoly
Regulation
Technological change
№3 слайд![Special features Demand](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img2.jpg)
Содержание слайда: Special features
Demand fluctuations
within the day, across seasons
Demand = load
Peak vs. offpeak demand
№4 слайд![Variations in hourly load](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img3.jpg)
Содержание слайда: Variations in hourly load
California system, GW vs. hour
№5 слайд![Special features Not storable](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img4.jpg)
Содержание слайда: Special features
Not storable (electricity today is not a substitute for electricity tomorrow)
№6 слайд![Special features High costs](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img5.jpg)
Содержание слайда: Special features
High costs of shortages
Blackouts or brownouts
Capacity >= load
“peak load problem”
№7 слайд![Special features Electricity](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img6.jpg)
Содержание слайда: Special features
Electricity is a secondary source of energy
Electricity is both an output and an input with respect to other energy products
E.g. output with respect to …?
E.g. input with respect to …?
Electricity is a substitute to some of its inputs
№8 слайд![Special features Electricity](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img7.jpg)
Содержание слайда: Special features
Electricity consuming capital is long lived (… years)
Electricity producing capital is long lived (40 years)
Technology used often is not the most optimal
№9 слайд![Special features Summary](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img8.jpg)
Содержание слайда: Special features
Summary
Demand fluctuations (within the day, across seasons)
Not storable (electricity today is not a substitute for electricity tomorrow)
High costs of shortages
Complex relations with respect to other energy products
№10 слайд![Production process Generation](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img9.jpg)
Содержание слайда: Production process
Generation
Transmission
Distribution
№11 слайд![Production process Generation](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img10.jpg)
Содержание слайда: Production process
Generation
Electricity is a secondary energy source
Transformation of one energy into electricity
Mechanical power into electric power:
Hydropower and wind
Thermal (coal, gas, oil)
Solar
Nuclear
№12 слайд![How is electricity generated?](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img11.jpg)
Содержание слайда: How is electricity generated?
http://www.eia.gov/energyexplained/index.cfm?page=electricity_generating
№13 слайд![Supply chain video https](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img12.jpg)
Содержание слайда: Supply chain video
https://www.youtube.com/watch?v=20Vb6hlLQSg
№14 слайд![Electricity supply chain](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img13.jpg)
Содержание слайда: Electricity supply chain
Generation: transformation of other energy into electric energy
Transmission: high voltage transport of energy
Distribution: low voltage transport of energy
№15 слайд![Minimum efficient scale MES](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img14.jpg)
Содержание слайда: Minimum efficient scale
MES is the level of output that minimizes average cost relative to the demand
№16 слайд![Varian, Intermediate](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img15.jpg)
Содержание слайда: Varian, Intermediate Microeconomics, Ch. 24
№17 слайд![Modelling electricity markets](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img16.jpg)
Содержание слайда: Modelling electricity markets
High fixed cost
Low variable cost
Average cost declines as Q grows
№18 слайд![Traditional Monopoly](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img17.jpg)
Содержание слайда: Traditional Monopoly
№19 слайд![Natural Monopoly](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img18.jpg)
Содержание слайда: Natural Monopoly
№20 слайд![Natural Monopoly profit-max](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img19.jpg)
Содержание слайда: Natural Monopoly
profit-max outcome
№21 слайд![Natural Monopoly profit-max](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img20.jpg)
Содержание слайда: Natural Monopoly
profit-max outcome
№22 слайд![Natural Monopoly socially](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img21.jpg)
Содержание слайда: Natural Monopoly
socially efficient outcome
№23 слайд![Natural Monopoly DWL](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img22.jpg)
Содержание слайда: Natural Monopoly
DWL
№24 слайд![Natural Monopoly socially](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img23.jpg)
Содержание слайда: Natural Monopoly
socially efficient outcome
№25 слайд![Natural Monopoly socially](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img24.jpg)
Содержание слайда: Natural Monopoly
socially efficient outcome
№26 слайд![Natural Monopoly Policy .](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img25.jpg)
Содержание слайда: Natural Monopoly
Policy
1. Public Ownership
2. Private Ownership + regulation
№27 слайд![Natural Monopoly Average cost](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img26.jpg)
Содержание слайда: Natural Monopoly
Average cost pricing outcome
№28 слайд![Differentiating peak amp](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img27.jpg)
Содержание слайда: Differentiating
peak & off-peak demand
№29 слайд![Peak amp offpeak load](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img28.jpg)
Содержание слайда: Peak & offpeak load
№30 слайд![Which prices to charge? How](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img29.jpg)
Содержание слайда: Which prices to charge?
How to distribute costs among two consumer groups?
Fixed cost? ~ “Capital cost” (Ck)
Variable cost? ~ “Operating cost” (Cp – during peak hours; Co – during offpeak hours)
№31 слайд![Peak amp offpeak load Should](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img30.jpg)
Содержание слайда: Peak & offpeak load
Should the marginal unit be supplied during peak or offpeak? What should be its price?
№32 слайд![Peak amp offpeak load Should](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img31.jpg)
Содержание слайда: Peak & offpeak load
Should the marginal unit be supplied during peak or offpeak? What should be its price?
№33 слайд![Smart meters and](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img32.jpg)
Содержание слайда: Smart meters and differentiating
peak & off-peak demand
№34 слайд![Peak-load pricing Electricity](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img33.jpg)
Содержание слайда: Peak-load pricing
Electricity prices in Astana:
23:00-7:00 => 3.21 KZT/ kWh
7:00-23:00 => 14.52 KZT/ kWh
№35 слайд![Peak-load pricing Summary](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img34.jpg)
Содержание слайда: Peak-load pricing
Summary
Peak-load pricing allows a utility to cover the fixed cost.
Peak-load pricing became feasible due to advances in technology.
№36 слайд![Electricity industry in](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img35.jpg)
Содержание слайда: Electricity industry in Kazakhstan
№37 слайд![Industry structure Generation](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img36.jpg)
Содержание слайда: Industry structure
Generation: mostly privately owned
Transmission: KEGOC, state-owned
Distribution: 15 regional distribution companies, state/privately owned
№38 слайд![](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img37.jpg)
№39 слайд![](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img38.jpg)
№40 слайд![](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img39.jpg)
№41 слайд![](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img40.jpg)
№42 слайд![](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img41.jpg)
№43 слайд![](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img42.jpg)
№44 слайд![Review Special features](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img43.jpg)
Содержание слайда: Review
Special features
Stages of electricity production
Production function and costs
Natural monopoly
Regulation
№45 слайд![Readings Dahl, Ch. Kazenergy](/documents_6/e2f49b6cab776e6b2b9ebd16281af187/img44.jpg)
Содержание слайда: Readings
Dahl, Ch. 4
Kazenergy pp. 274-275, 290-291, 303-305.