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Nuclear Capacity Auctions

Sven-Olof Fridolfsson and Thomas P. Tangeras
Authors registered in the RePEc Author Service: Thomas Tangerås () and Sven-Olof Fridolfsson

The Energy Journal, 2015, vol. Volume 36, issue Number 3

Abstract: We propose nuclear capacity auctions as a means to correcting the incentives for investing in nuclear power. In particular, capacity auctions open the market for large-scale entry by outside firms. Requiring licensees to sell a share of capacity as virtual power plant contracts increases auction efficiency by mitigating incumbent producers' incentive to bid for market power. A motivating example is Sweden's policy reversal to allow new nuclear power to replace old reactors.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2015
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Working Paper: Nuclear Capacity Auctions (2011) Downloads
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