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Electricity markets

October 2013

Science Po

Emmanuel Frot and Nathalie Daley teach a course on industrial organization to students of the Master in Finance and Strategy at SciencesPo.

The objective of the course is to provide a working knowledge of the analytical tools of industrial organization useful to understand the strategic decisions firms make. Its purpose is different from a more traditional industrial organization course as it does not make use of mathematical modelling but rather seeks to show student how economic concepts apply to real-world market situations. Although clearly applied, the course does not eschew theoretical concepts and also provides students with a basic but solid introduction to microeconomic theory.

The fifth lecture deals with electricity markets. It presents the economic features of electricity markets and the main reforms in Europe and France since the 90’s. It focuses on activities that are now opened to competition and discusses the problems that can occur for competition to be effective. It also discusses access regulation in the activities that remain under natural monopolies.  

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