For important domestic public policy reasons, many oil- and natural-gas-producing countries allocate fuels to their electricity sector at administratively set prices that are below fuel opportunity costs. This article shows that dispatching power units based on fuel opportunity costs can significantly increase efficiency, while, for political reasons, end users’ electricity prices can continue to be defined based on administratively set fuel prices. In addition, opportunity cost dispatch can bring about environmental benefits when it results in switching the priority levels of oil and gas units in the merit order. This work also resolves the electricity trading dilemma since countries do not want to export electricity based on domestic prices.

Senior Fellow- Utilities & Renewables
Marie is a Senior Fellow in the Utilities & Renewables Department. Since she joined KAPSARC in 2021, her research has…
Marie is a Senior Fellow in the Utilities & Renewables Department. Since she joined KAPSARC in 2021, her research has focused on power system modeling (KAPSARC Power Model), market designs for energy transitions, and framework analysis for reliable and resilient power systems. Prior to joining KAPSARC, Marie worked as a Research Engineer within the Research and Development (R&D) unit of the utility group EDF in Paris, France. During her EDF journey, she worked on long-term and short-term electricity market design, the transmission grid at the European scale, and smart-charging opportunities for electric vehicles. Marie also worked as a researcher within the Market Department of the French Transmission System Operator RTE. Marie holds a Ph.D. in Economics from Dauphine University, PSL (France), an M.Sc. in Environmental and Energy Economics from Ecole des Ponts ParisTech (France), and a M.Sc. in Engineering from ENSTA Institut Polytechnique de Paris (France).
Expertise
- Electricity Markets
- Power System Modeling
- Electricity Market Design and Regulation
- Energy Transition
- Energy and Climate Policy
Publications See all Marie Petitet’s publications

Cross-Border Electricity Trading in the GCC Countries, Egypt, Jordan and Iraq: Hourly Market Coupling or Bilateral Agreements?
For important domestic public policy reasons, many oil- and natural-gas-producing countries allocate fuels to their…
28th April 2025
Are There Adequate Materials and Land Resources for the Saudi Power Sector to Achieve Net Zero by 2060?
For important domestic public policy reasons, many oil- and natural-gas-producing countries allocate fuels to their…
27th April 2025