Virendra Ajodhia, Konstantin Petrov, Gian Carlo Scarsi, Bart Franken
Both theory and practice suggest that incentive price regulation, without additional quality measures, eventually leads to quality degradation: the strong cost reduction incentives (driven by the profit incentive) have the perverse effect of inducing sub-standard quality levels. Thus, under economic regulation models using incentive schemes, quality regulation becomes imperative.Read full article
Since 1967, the La Rance tidal power plant, near Mont Saint Michel, generated annually 600 million kWh using its 24 turbines of 10 MW.
During the first 30 years of operation, the 24 turbines of the Rance facility has operated without major incidents or breakdowns for 160,000 hours and generated 16 billion kWh at the price of 2.8 cEuro per kilowatt-hour, a highly competitive price and one that is lower than Electricité de France's average generation costs.
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The Conference Board of Canada published last month a briefing paper "Sustainability and Energy Security - Wrestling with Competing Futures" (paper freely available after registration), describing how policy makers around the world struggle to 'keep the lights on and the air clean', while facing 3 tensions:Read full article