Making Energy Markets: The Origins of Electricity Liberalisation in Europe

Making Energy Markets charts the emergence and early evolution of electricity markets in western Europe, covering the decade from the late 1980s to the late 1990s. It shows how the creation of electricity markets involved political decisions about the feasibility and desirability of introducing competition into electricity supply industries, and how an understanding of the origins of electricity markets and their political character can inform contemporary debates about renewables and low carbon energy transitions.

Format: Paperback / softback
Length: 360 pages
Publication date: 03 February 2023
Publisher: Springer Nature Switzerland AG

Making Energy Markets charts the emergence and early evolution of electricity markets in Western Europe, spanning the decade from the late 1980s to the late 1990s. Liberalizing electricity marked a profound departure from the established paradigm of state-controlled electricity systems that had taken root across Europe following the Second World War. By examining the early liberalization processes in Britain and the Nordic region, and analyzing the role of the European Economic Community (EEC), the book demonstrates that the creation of electricity markets involved political decisions about the feasibility and desirability of introducing competition into electricity supply industries. Competition introduced risks, necessitating politicians to assess who the likely winners and losers would be and the extent to which competition would impact key national industries, particularly coal mining, nuclear power, and energy-intensive production, that relied on cross-subsidies from the electricity sector.

The book delves into how an understanding of the origins of electricity markets and their political character can inform contemporary debates about renewable energy and low-carbon energy transitions. It sheds light on the historical factors that shaped the development of these markets, including the regulatory frameworks, policy decisions, and technological advancements that drove competition and market integration. By exploring the interplay between politics, economics, and technology, the book provides valuable insights into the challenges and opportunities associated with transitioning to a more sustainable and competitive energy system.

Moreover, Making Energy Markets offers a critical perspective on the ongoing debates surrounding energy policy and regulation. It challenges the notion that market-driven solutions alone can ensure a sustainable and affordable energy future. The book emphasizes the importance of public policies, regulations, and interventions to address social and environmental concerns, such as climate change, energy security, and access to clean energy. It advocates for a balanced approach that combines market mechanisms with government support to achieve sustainable energy transitions.

In conclusion, Making Energy Markets is a comprehensive and insightful book that provides valuable insights into the emergence and early evolution of electricity markets in Western Europe. It sheds light on the political dimensions of marketization, the risks and benefits of competition, and the need for a balanced approach to energy policy and regulation. By examining the historical roots of electricity markets, the book contributes to contemporary debates about renewable energy, low-carbon energy transitions, and the future of energy systems.

Weight: 491g
Dimension: 210 x 148 (mm)
ISBN-13: 9783030900779
Edition number: 1st ed. 2021