The Differing Drivers of EU Electricity Policy – Mike Bostan

Countries and companies are likely to store an extra supply of gas to cover more than the normal consumption need, in order to avoid any disruption of the gas supply to consumers. However, the cost of storing this extra supply must be added to the price, making the gas more expensive. Too much focus on affordability may become a vulnerability of the gas supply. Conversely, too much emphasis on secure supply can affect price. So where is the balance? What factors drive EU policymakers to pay more attention to one policy goal?

This dissertation investigates such fundamental system imbalances in the domain of electricity and finds that differing drivers of EU electricity policy depend on its purpose. While affordability and security of supply legislation respond to expected drivers, such as electricity price or interrupted electricity, the environmental policy is an anomaly. Environmental policy is not responding to drivers such as air pollutants or GHGs reduction, but to a different set of drivers, highlighted in the paper.


This is my book, a PhD thesis discussing the fundamental imbalances of the EU electricity system.


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