Bill Hogan, EU Power Target Model? Not for me! | Energy Today with JM Glachant

http:fsr.eui.eu The Florence School of Regulation presents: Jean-Michel Glachant's Energy Today no.010 14 April 2015, Harvard Kennedy School, Cambridge Massachusetts. Director of Florence School asks Harvard Prof. Bill Hogan how he views the existing EU Power Target Model and compares it with his own preferred Target Model. Bill Hogan is Professor of Global Energy Policy and Director of the Harvard Electricity Policy Group (HEPG) at Harvard Kennedy School. "There is a fundamental problem associated with my understanding of this design that has to do with the underlying principles of markets, and in particular with what we call in the US ‘open access’ and ‘non-discrimination’." “…we had markets in California, Texas, New England and PJM in the early days, which all collapsed because you couldn’t reconcile open access, non-discrimination, and substantial arbitrage opportunities between the market and the physical system” “The difference has to be explained in the implementation of these principles of open access and non-discrimination, I think I that the TSOs in Europe have much more power and flexibility to discriminate between market participants than the independent system operators do in the United States"