How different electricity pricing systems affect the energy trilemma: Assessing Indonesia's electricity market transition

Raphael Heffron, Marc-Fabian Körner, Theresia Sumarno, Jonathan Wagner, Martin Weibelzahl and Gilbert Fridgen

Energy Economics, 2022, vol. 107, issue C

Abstract: Indonesia's current energy policy, which relies on cheap fossil fuels and focuses on two out of the three horns of the energy trilemma, namely, energy security and energy equity, may impede its efforts to higher shares of renewable energy sources. This paper develops three generic models that allow policymakers to analyze the impact of introducing a wholesale electricity market managed under either a nodal, a zonal, or a uniform pricing system on the three horns of the energy trilemma. It evaluates the models using a simplified network representation of the Indonesian electricity sector. The results indicate that under the model assumptions made, and given the used input parameters as well as the used metrics for the three horns of the energy trilemma, a uniform pricing system might help Indonesia to balance its energy trilemma.

Keywords: Electricity pricing system; Electricity market liberalization; Energy trilemma; Indonesia; Renewable energy sources (search for similar items in EconPapers)
JEL-codes: L11 L51 Q40 Q41 Q42 Q48 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:107:y:2022:i:c:s014098832100520x

DOI: 10.1016/j.eneco.2021.105663

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