Electricity Market Integration under restriction on efficient technologies development: the absence of benefit for electricity consumers

摘要

Electricity market integration is supposed to be beneficial to all the economies as it will be for any other good markets. Lower marginal costs productions in some countries will be used for selling in their countries as well as in the neighbour countries. The price on the integrated markets will be established between the lowest price and the highest prices on he respective markets when they were not integrated. It will be to the benefits of the countries of the high cost producers and for the profitability of the lower cost producers of the other countries. Conversely it will be to the detriment of the countries with low cost producers. rnIn the longer run, according to the standard economic paradigm, the comparative advantage of the low-cost producers should lead to an increase in low-cost capacities. Prices would adjust to the level of low-cost producers and capacities would migrate from high-cost producers to lowcost producers. And if high cost producers are able to use the technologies used by the low cost producers, they would react by developing also these technologies and contribute to the lowering of hourly electricity prices.