Energy Market and Energy Transition: Dynamics and Prospects

With the global effort to mitigate the impact of climate change, an energy transition is inevitable and irreversible. Due to both a strong push from governments and technological progress, the energy markets are experiencing dynamic changes. Some of these changes may facilitate energy transition, others may create challenges to existing markets. Successful management of such challenges is a precondition for such market dynamics to promote energy transition, otherwise the challenges could work against energy transition. The increasing importance of renewable energies and also natural gas in the global energy mix and trade will also have impact on market power in the existing energy markets.

This Research Topic explores unfolding energy market dynamics. Ongoing changes in the fossil fuel markets, renewable energy market and electricity market will be examined. On the fossil fuel side, the most significant change is the liberalization and globalization of liquefied natural gas (LNG) markets. The pursuit of alternative pricing mechanisms has led to gradual commoditization and financialization of the LNG market. The increasing self-sufficiency of the US in the oil market and the export of US crude oil has also changed the dynamics of the oil markets. On the renewable energy side, the increasing competitiveness of variable renewable energies challenges the existing electricity markets and poses new challenges to policy makers in countries both with matured electricity markets, and those yet to develop their electricity markets.

This Research Topic solicits empirical and case studies based on solid theoretical background and with practical policy implications. Themes of interest include, but are not limited to:

· Behavior of market players and market power
· Energy market commoditization and financialization
· Energy market changes
· Renewable penetration: process and impact
· Alternative energy pricing