Energy PolicyPub Date : 2025-10-04DOI: 10.1016/j.enpol.2025.114903
Paul Verhagen , Jing Hu , Robert Harmsen
{"title":"Evaluating non-firm grid connections for battery energy storage systems: A co-optimization case study of the Netherlands","authors":"Paul Verhagen , Jing Hu , Robert Harmsen","doi":"10.1016/j.enpol.2025.114903","DOIUrl":"10.1016/j.enpol.2025.114903","url":null,"abstract":"<div><div>The rapid growth of renewable capacity highlights the need for flexible and efficient grid connections, emphasizing the importance of energy storage systems such as batteries (BESS). So far, BESS have operated under firm grid connection agreements, ensuring uninterrupted access to the grid but resulting in high annual grid fees and potential installation delays due to required grid upgrades. To solve this, non-firm grid connection agreements have emerged, allowing faster grid integration and reducing infrastructure costs. However, these agreements pose a risk of curtailment during peak periods, which can impact the profitability of BESS.</div><div>To assess this impact, a day-ahead perfect foresight co-optimization model is developed to evaluate BESS participation across multiple electricity markets – specifically, the Day-Ahead, Frequency Containment Reserve (FCR), and automatic Frequency Restoration Reserve (aFRR) markets – under both firm and non-firm grid connection policies. The Netherlands is used as a case study, focusing on a newly proposed non-firm access (NFA) policy framework that allows curtailment for up to 15 % of the year in exchange for significantly reduced grid fees.</div><div>Results indicate that while the non-firm connection policy scheme yields lower gross revenues due to operational constraints, the substantial reduction in grid fees – up to 65 percent – makes it the more profitable option overall. Sensitivity analyses revealed that the choice of historical pricing data and curtailment days significantly influence the most favorable policy scheme.</div><div>This study contributes a novel co-optimization modeling approach that explicitly incorporates state-of-charge management constraints optimizing BESS participation across multiple electricity markets, under both firm and non-firm grid connections.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"208 ","pages":"Article 114903"},"PeriodicalIF":9.2,"publicationDate":"2025-10-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145217915","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-10-04DOI: 10.1016/j.enpol.2025.114904
Milan Hudák , Klára Čermáková , Božena Kadeřábková , Irina Alina Popescu , Daniel Balsalobre-Lorente
{"title":"From fragmentation to integration: Gas market convergence in Central and Eastern Europe in the aftermath of the EU energy crisis","authors":"Milan Hudák , Klára Čermáková , Božena Kadeřábková , Irina Alina Popescu , Daniel Balsalobre-Lorente","doi":"10.1016/j.enpol.2025.114904","DOIUrl":"10.1016/j.enpol.2025.114904","url":null,"abstract":"<div><div>The 2022 energy crisis exposed deep structural vulnerabilities in the European gas market, particularly in Central and Eastern Europe (CEE), a region historically dependent on Russian gas and lacking fully liberalized markets. This study provides the first comprehensive empirical assessment of the integration of the gas spot market in nine CEE countries from 2021 to 2024, employing Granger causality, Johansen cointegration, vector error correction models (VECM), impulse response functions, and forecast error variance decomposition. The results reveal an increase in regional price convergence, driven by expanded infrastructure, flexible trading mechanisms, and policy interventions such as the Ukrainian short-haul transit service and the EU's REPowerEU plan. However, integration and market cohesion remain uneven. Countries like Germany, Poland, and Czechia function as central price-setters, while others, notably Romania and Bulgaria, exhibit greater exposure to shocks. Infrastructure projects such as the GIPL interconnector and new liquefied natural gas (LNG) terminals significantly reduce price imbalances, but events like Germany's cross-border transport levy (GSU) introduce persistent distortions. This paper highlights progress and persistent asymmetries in the CEE gas market integration, offering insider policy recommendations. It demonstrates the need for coordinated policy action, harmonized regulation, and continued investment in interconnectors and storage to ensure resilient and interconnected gas markets throughout the EU.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"208 ","pages":"Article 114904"},"PeriodicalIF":9.2,"publicationDate":"2025-10-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145217913","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-10-03DOI: 10.1016/j.enpol.2025.114828
Louise Fitzgerald , Conchúr Ó Maonaigh
{"title":"From energy firms to communities: Beyond market-centric approaches for just policy impacts","authors":"Louise Fitzgerald , Conchúr Ó Maonaigh","doi":"10.1016/j.enpol.2025.114828","DOIUrl":"10.1016/j.enpol.2025.114828","url":null,"abstract":"<div><div>In the context of government commitments to a just transition, private and commercial energy organisations are often the main actors entrusted with creating the pathways towards low-carbon energy systems. However, in this policy perspective, we bring original research from Ireland's energy transition into conversation with scholarly literature, including contributions to <em>Energy Policy</em>, to develop an applied and policy-relevant critique of this prevailing approach. This perspective is based on our research project which included interviews, focus groups and analysis of both academic and grey literature. We examine four key elements of energy system change – namely, the dynamics of energy sector firms, decentralisation, energy end-users, and energy systems thinking – to highlight important limitations in market-oriented models to achieving just transition policy aspirations. In doing so, we introduce a novel heuristic that underscores the need to move beyond firm-led just transition strategies to enable system-wide change. Based on this analysis, we propose a set of policy recommendations to chart the pathways towards transformative and just energy futures.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"208 ","pages":"Article 114828"},"PeriodicalIF":9.2,"publicationDate":"2025-10-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145217914","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-10-03DOI: 10.1016/j.enpol.2025.114907
Yafei Yang , Peng Zhou , Hui Wang
{"title":"Carbon emissions from electricity consumption in interprovincial grids of China: An electricity-extended input-output analysis","authors":"Yafei Yang , Peng Zhou , Hui Wang","doi":"10.1016/j.enpol.2025.114907","DOIUrl":"10.1016/j.enpol.2025.114907","url":null,"abstract":"<div><div>Life cycle carbon emissions mitigation from electricity consumption is crucial for China's decarbonization. With the expansion of interprovincial electricity trade, carbon emissions from electricity consumption become increasingly diverse in both sources and determinants. Tracking the carbon emissions and determinants is thus fundamental to formulating targeted mitigation measures. To this end, we develop an electricity-extended input-output model that incorporates interconnected grids into the macroeconomic input-output framework. The proposed method holistically accounts for electricity generation, transmission, distribution and higher upstream production across the life cycle of electricity consumption. Applying this method to examine the carbon footprints of electricity consumption across 30 provinces during 2018–2022 shows that North, East and Central grids exhibited higher carbon footprints, and carbon footprint factors varied significantly across provinces. Beijing, Hebei, Shandong, Liaoning and Zhejiang witnessed great electricity and carbon inflows and registered indirect interprovincial trading paths. Revealing the determinants shows that improvements in electricity structure, transmission and distribution efficiency, fuel mix and in-plant electricity use efficiency contributed to carbon reduction, while the regional structure of electricity supply became carbon-intensive, particularly in Guangdong, East grid and Shandong. Policy implications regarding carbon footprint reduction from the interprovincial electricity trade perspective are discussed.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"208 ","pages":"Article 114907"},"PeriodicalIF":9.2,"publicationDate":"2025-10-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145217909","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-10-01DOI: 10.1016/j.enpol.2025.114912
Lin Zhu , Hua Liao , Tunye Qiu , Jiahui Chen
{"title":"Public pension accelerates the household electrification: Experience from rural China","authors":"Lin Zhu , Hua Liao , Tunye Qiu , Jiahui Chen","doi":"10.1016/j.enpol.2025.114912","DOIUrl":"10.1016/j.enpol.2025.114912","url":null,"abstract":"<div><div>This study evaluates the impact of government transfer payment policies on rural household electricity consumption. Leveraging the implementation of China's New Rural Social Pension (NRSP) scheme, which provides pension income to individuals aged 60 and above, we employ a fuzzy regression discontinuity design to causally identify the effect of pension income on household electricity consumption. The findings show that the NRSP eligibility increases electricity expenditure by approximately 1.2 times among beneficiary households. The effect is especially pronounced for low-income households, elderly individuals living alone, and those receiving pensions through personal contributions. Further analysis reveals three main pathways through which the NRSP promotes electricity use: a direct income effect, a shift from traditional to modern energy sources, and changes in time allocation due to reduced engagement in non-agricultural labor. These results underscore the broader role of public pension programs in alleviating energy poverty and supporting a just energy transition in rural areas.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"208 ","pages":"Article 114912"},"PeriodicalIF":9.2,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145217912","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-09-30DOI: 10.1016/j.enpol.2025.114888
Simon Grabow , Tobias Riepl , Johannes Thema , Carina Zell-Ziegler
{"title":"Efficiency only? An analysis of avoid, shift and improve strategies in EU member states’ long-term mitigation policy","authors":"Simon Grabow , Tobias Riepl , Johannes Thema , Carina Zell-Ziegler","doi":"10.1016/j.enpol.2025.114888","DOIUrl":"10.1016/j.enpol.2025.114888","url":null,"abstract":"<div><div>Despite ambitious EU targets, national emission trajectories reported by member states continue to fall short of achieving the necessary reductions. This implementation gap raises the question of what mitigation strategies and instruments member states rely on to meet internationally binding climate targets. To explore this, we scrutinise 1584 implemented, adopted, or planned mitigation policies across the sectors of agriculture, transport, energy consumption, and industry using qualitative content analyses. Our findings reveal substantial discrepancies in the distribution of mitigation strategies. Efficiency improvements dominate EU mitigation efforts, comprising 54 % of proposed measures. In contrast, policies promoting shifts to low-carbon alternatives represent only 14 %, while those avoiding energy or service demand make up just 2 %. Even when considering broader policy mixes that include elements of shifting and reducing final demand, these strategies remain under-represented across all sectors, particularly in industry and agriculture. The remaining share of reported mitigation policies, accounting for 21 %, focus on altering broader regulatory frameworks and incentive structures, underscoring their critical role in EU member states' mitigation efforts. Additionally, we find member states to rely predominantly on economic and regulatory policy instruments, with substantial variation across mitigation strategies and sectors. Our findings carry important policy implications, unveiling EU’s reliance on efficiency-centred approaches to achieve climate targets. Given the implementation gap and the untapped potential of demand-side measures, diversifying mitigation strategies could enhance the EU’s ability to meet legally binding climate targets.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"208 ","pages":"Article 114888"},"PeriodicalIF":9.2,"publicationDate":"2025-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145217908","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-09-30DOI: 10.1016/j.enpol.2025.114869
Sofia Maier , Ilda Dreoni
{"title":"Who is “energy poor\" in the EU?","authors":"Sofia Maier , Ilda Dreoni","doi":"10.1016/j.enpol.2025.114869","DOIUrl":"10.1016/j.enpol.2025.114869","url":null,"abstract":"<div><div>The 2022–2023 surge in global energy prices and the fairness challenges of the green transition have revived debates on energy poverty in Europe. However, the lack of consensus on measuring energy poverty hinders effective policy formulation and evaluation. This paper analyzes the EU-wide distribution and profiles of the “energy poor\" using four established indicators, two subjective and two expenditure-based, derived from statistically matched HBS and SILC household surveys. Our results suggest significant disparities: expenditure-based measures capture broader populations, particularly in middle- and high-income EU countries, with minimal overlap between indicators. Notably, only 0.3 % of the population is simultaneously classified as energy poor by the four indicators, while 40 % enter this group by at least one measure. By examining who is included or excluded under each indicator and their links to income and expenditure, we provide new insights into the potential heterogeneous distributional impacts of policies aimed at tackling energy poverty in Europe.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"208 ","pages":"Article 114869"},"PeriodicalIF":9.2,"publicationDate":"2025-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145217905","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-09-29DOI: 10.1016/j.enpol.2025.114905
Yantuan Yu , Ning Zhang
{"title":"Revealing the power of market-based energy policy: Evidence from China's energy quota trading system using machine learning","authors":"Yantuan Yu , Ning Zhang","doi":"10.1016/j.enpol.2025.114905","DOIUrl":"10.1016/j.enpol.2025.114905","url":null,"abstract":"<div><div>The effect of market-based climate policy instruments on a just transition cannot be underestimated, especially for developing economies. In this study, we provide rigorous empirical evidence on how China's Energy Quota Trading System (EQTS) can drive green technology innovation and support an equitable, low-carbon transition. Specifically, based on a quasi-experimental modeling framework, we use a Double Debiased Machine Learning method to estimate the casual effect of China's EQTS on energy productivity. Further, we explore the mechanisms of impact and examine heterogeneity effects from regional, resource endowment, and environmental regulation stringency perspectives. The empirical findings show that EQTS significantly improves energy productivity, exhibiting an average marginal effect of 13.2 %. Robustness checks confirm the validity of the results after controlling for potential confounders. Green technology innovation and energy transition function as critical pathways through which the policy enhances energy productivity. This study presents empirical evidence on how effective market-based regulatory mechanism are in the energy sector and offers practical policy recommendations for integrating innovation-driven strategies within national carbon mitigation frameworks.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"208 ","pages":"Article 114905"},"PeriodicalIF":9.2,"publicationDate":"2025-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145217910","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-09-29DOI: 10.1016/j.enpol.2025.114906
Hongwang Chang , Yushuo Chen , Li Liu , Tao Wang , Pingjian Yang
{"title":"Balancing “today” and “tomorrow”: The role of environmental regulation in harmonizing intergenerational utility","authors":"Hongwang Chang , Yushuo Chen , Li Liu , Tao Wang , Pingjian Yang","doi":"10.1016/j.enpol.2025.114906","DOIUrl":"10.1016/j.enpol.2025.114906","url":null,"abstract":"<div><div>Environmental policy aims to ensure sustainable, green, and healthy economic growth through macroeconomic regulation. In the absence of a central planner, the current generation is likely to impose the negative externalities of its economic growth on future generations. This situation could lead to unsustainable economic development and severe environmental problems. Environmental regulation, with its unique characteristics, is increasingly recognized as a primary policy tool for addressing such environmental challenges. This paper theoretically examines the effects of environmental regulation on intergenerational utility using a two-period overlapping generations (OLG) model. Through simulations and empirical tests, we explore how environmental regulation harmonizes environmental quality with economic growth by promoting cleaner energy consumption and technological progress. Our analysis provides theoretical pathways for achieving this compatibility and offers policy insights to guide the development of effective environmental regulation. The study provides a framework for designing policies tailored to different stages of development and sectors, offering practical guidance for sustainable economic growth.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"208 ","pages":"Article 114906"},"PeriodicalIF":9.2,"publicationDate":"2025-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145217911","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-09-29DOI: 10.1016/j.enpol.2025.114882
Prashant Pant , Frank-Martin Belz
{"title":"Energy market liberalization and the emergence of new energy ventures in Germany","authors":"Prashant Pant , Frank-Martin Belz","doi":"10.1016/j.enpol.2025.114882","DOIUrl":"10.1016/j.enpol.2025.114882","url":null,"abstract":"<div><div>This paper investigates how energy market liberalization and the policies supporting renewable energy integration have influenced the emergence of new energy ventures in Germany. A wide range of policies is examined, including the Energy Industry Act (EnWG), the Renewable Energy Sources Act (EEG), the Buildings Energy Act (GEG), and several others that have shaped the sector. The analysis is organized around the electricity value chain by considering upstream, midstream, and downstream segments and traces policy impacts on venture creation through data and case studies. The findings suggest a noticeable trend between regulatory measures and the development of innovative business models. Importantly, the study highlights that technological advancement alone is not sufficient; policy support, financial incentives, and market access mechanisms are critical drivers of both entrepreneurial activity and new venture emergence. The study provides practical insights for policymakers internationally, particularly in countries in the Global South that have yet to undergo energy market liberalization.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"208 ","pages":"Article 114882"},"PeriodicalIF":9.2,"publicationDate":"2025-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145217916","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}