Nuclear Capacity Auctions

Arbeitspapier

We propose nuclear capacity auctions as a means to improve the incentives for investing in nuclear power. A properly designed auction would (i) allocate the license to the most efficient bidder; (ii) sell the license if and only if new nuclear power was socially optimal. 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 softening incumbent producers’ incentive to bid for market power. Our motivating example is Sweden’s recent decision to allow new nuclear power to replace old reactors.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 892

Classification and Topics

• Classification: Wirtschaft ; Auctions ; Monopoly; Monopolization Strategies ; Energy: Government Policy
• Subject: Capacity auctions ; investments ; market power ; nuclear power ; virtual power plants ; Kernenergie ; Auktion ; Produktionskapazität ; Marktmacht ; Schweden

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fridolfsson, Sven-Olof ; Tangerås, Thomas
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/81388
• Last update: 10.03.2025, 11:44 AM CET