Convergence of Gas and Electricity Markets: Opportunities and challenges from a business perspective

摘要

In this paper we identify different economic and technological drivers for the observed convergence of gas and electricity markets in the context of the ongoing market restructuring (i.e. liberalization) and apply it to the energy market in The Netherlands. The analysis is based on a description of the economic and technological peculiarities of the gas- and electricity value chains, and four different categories of market convergence. Market convergence can be related to products and services, regulation, business governance and technology. We conclude that the advent of small scale decentral generation and environmental issues further stimulate convergence of gas and electricity markets and that this provides opportunities rather than threats for both market participants and regulators. Some empirical evidence of convergence in The Netherlands is presented and discussed.