Interdependence Between the Long-Term Investment Decisions of the Power and Gas Industries: The Case of the UK

This thesis set out to explore the interdependencies between long-term investment decisions of the UK’s power and gas industries. The interdependencies between these two network industries have been growing during the past two decades. Technical, commercial, and regulatory decisions made with narrow scope, without considering potential interaction between the two industries, might cause unwanted consequences or fail to take advantage of opportunities. Four complementary studies have been conducted to offer different lenses through which to view gas and power interdependencies: a literature review of research traditions in long-term investments in power and gas sectors, a case study that dissects the UK’s gas-to-power supply chain segment-by-segment, an econometric study that test for cointegration between gas and power prices series, and a System Dynamics simulation model that allows for quantitative testing of uncertain scenarios. The findings of the more general studies have been able to inform the research methodology of subsequent, more specific studies.Technology, Policy and Managemen