Article
Engineering, Electrical & Electronic
Pierre Pinson
Summary: Should the organization, design, and functioning of electricity markets be taken for granted? Definitely not. The evolving context of power and energy systems is challenging the idea of a future-proof model, but it also brings opportunities for advances in technical and social sciences to shape future market design. A holistic point of view is needed to consider electricity markets as a way to organize and operate a socio-techno-economic system.
JOURNAL OF MODERN POWER SYSTEMS AND CLEAN ENERGY
(2023)
Article
Energy & Fuels
Juan Pablo Rios-Ocampo, Santiago Arango-Aramburo, Erik Reimer Larsen
Summary: The global transition from fossil fuels to renewable energies like wind and solar is being encouraged, with decreasing investment costs and growing incentives leading to a rapid increase in renewable capacity. However, these changes bring great challenges and uncertainties to the electricity market, specifically due to resource availability.
INTERNATIONAL JOURNAL OF ENERGY RESEARCH
(2021)
Article
Economics
Cristian Villalobos, Matias Negrete-Pincetic, Nicolas Figueroa, Alvaro Lorca, Daniel Olivares
Summary: The extensive growth of variable renewable energy integration presents challenges for power systems and markets, requiring flexibility to adapt to changes. Studies on short-term market pricing schemes show the importance of including flexibility features to incentivize agents to meet systemic flexibility requirements.
Article
Economics
David P. Brown, Andrew Eckert, Derek E. H. Olmstead
Summary: This paper addresses the challenge of price and quantity uncertainty in setting regulated rates for default retail electricity products. It discusses the use of full-load auctions to evaluate the costs associated with this uncertainty. The study finds that an increase in the number of bidders active in the auctions leads to a reduction in the difference between winning bids and breakeven levels.
Article
Engineering, Manufacturing
Alexandar Angelus
Summary: This study focuses on how consumers should strategically invest in distributed renewable energy generation to minimize costs and analyzes the impact of consumer investments on electric utility revenues. Results indicate that consumers can save an average of 22% in costs by optimizing their investment timing and capacity selection, while electric utilities can increase revenues by over 10% by following a pricing policy that maximizes revenue in serving individual or multiple consumers.
PRODUCTION AND OPERATIONS MANAGEMENT
(2021)
Article
Environmental Studies
Shouwen Wang, Lijie Xu, Siming Yu, Siyao Wang
Summary: This study examines the relationship between natural resource rents and economic growth in Russia from 1990 to 2021. The results show that oil rents significantly enhance economic growth, while mineral rents have a negative impact. Additionally, foreign direct investment and re-export trade also contribute positively to Russia's economic growth. These findings have practical implications for policy regarding Russia's natural resources and their role in economic growth.
Article
Engineering, Electrical & Electronic
Zongzheng Zhao, Yixin Liu, Li Guo, Linquan Bai, Zhongguan Wang, Chengshan Wang
Summary: This paper proposes an uncertainty-aware distribution locational marginal pricing mechanism based on robust optimization for managing the uncertainty of small-scale distributed energy resources (DERs) and removing barriers to their participation in wholesale electricity markets. The mechanism provides transparent and comprehensive price signals for managing voltage, congestion, loss, and uncertainty, and allows DERs to participate in wholesale markets.
IEEE TRANSACTIONS ON SMART GRID
(2023)
Article
Economics
Paul Simshauser
Summary: Australia's National Electricity Market (NEM) faced challenges during the 2016-2020 investment supercycle, including connection lags, deteriorating system strength, geographic congestion of investments, and rising levels of generation curtailment. A new policy proposal known as 'Renewable Energy Zones' (REZ) is considered a promising means to accelerate renewable hosting capacity in the NEM.
Article
Agricultural Engineering
Zhengzhong Mao, Shaoan Cheng, Yi Sun, Zhufan Lin, Longxin Li, Zhen Yu
Summary: This study proposes a novel biocathode acclimation strategy with intermittent step-up voltage (ISUV) to improve the stability and resilience of the Electromethanogenesis (EMG) system against the fluctuation of renewable electricity input. Compared with intermittent application of constant voltage (IACV), ISUV significantly increased the rate of CH4 production by 11.7 times, and improved the stability and resilience by 56% and 500%, respectively. Morphological and microflora structure analysis revealed that the biofilm enriched with ISUV exhibited a compact microflora structure with high-density cells and nanowires interconnected, providing an effective strategy to enhance the performance of the EMG system.
BIORESOURCE TECHNOLOGY
(2021)
Article
Thermodynamics
Arezoo Hasankhani, Seyed Mehdi Hakimi
Summary: The paper proposes a stochastic energy management algorithm to address smart microgrids' participation in the electricity market, aiming to minimize total cost and find optimal component sizes. Intermittencies in PV output power, WT output power, and electric vehicle are modeled and integrated using the Copula method. The efficiency of the proposed method is verified through testing on a sample three-MG, showing cost reductions and improved performance post participation in the electricity market.
Article
Energy & Fuels
Kushagra Bhatia, Rajat Mittal, Jyothi Varanasi, M. M. Tripathi
Summary: This work analyzes the impact of renewable sources on price forecasts and proposes a new architecture for short-term electricity price forecasting. The stacked model integrates extreme gradient boosting and random forest, bagged together to create an efficient model. The combination of feature engineering and ensemble architecture outperforms existing techniques.
Article
Business
Carsten Helm, Mathias Mier
Summary: Renewable energies have gained market share and reduced costs due to substantial subsidies, but the variability of solar and wind power presents new challenges for power systems. Policy instruments must be carefully designed to transition towards a zero-carbon future. Optimal subsidy rates for renewables decrease as reliance on fossil fuels decreases, and storage subsidies may switch from negative to positive depending on market conditions.
JOURNAL OF ENVIRONMENTAL ECONOMICS AND MANAGEMENT
(2021)
Article
Environmental Sciences
Qingyuan Zhu, Xifan Chen, Malin Song, Xingchen Li, Zhiyang Shen
Summary: This paper analyzes the impacts of the interaction between Renewable Electricity Standard (RES) and Renewable Energy Certificates (REC) policies on renewable energy investment and carbon emissions. The study finds that the green tags price has a non-monotonic effect on renewable energy investment and carbon emissions, depending on the quota set in the RES policy.
JOURNAL OF ENVIRONMENTAL MANAGEMENT
(2022)
Article
Management
Joon Woo Bae, Redouane Elkamhi
Summary: Empirical evidence suggests that innovation in global equity correlation serves as a viable pricing factor in international markets. A stylized model and simple measurement method demonstrate the robust negative price of risk and improved cross-sectional fits across various asset classes. Additionally, the study explores the factor's pricing ability in the FX market and reveals the link between international equity and currency markets through global equity correlations.
MANAGEMENT SCIENCE
(2021)
Article
Green & Sustainable Science & Technology
Carla Goncalves, Pierre Pinson, Ricardo J. Bessa
Summary: The study proposes a data marketplace to incentivize collaboration between different data owners for sharing renewable energy forecast data, which is shown to increase revenue and reduce system imbalance costs.
IEEE TRANSACTIONS ON SUSTAINABLE ENERGY
(2021)
Article
Economics
Marie-Louise Arlt, David Chassin, Claudio Rivetta, James Sweeney
Summary: This paper examines the impact of real-time pricing and load automation on residential distribution systems. The study finds that implementing real-time pricing can result in an aggregate welfare gain of 39 USD per customer and year. However, it also notes that RTP and load automation may significantly increase peak system load. Introducing a market-based demand management system can further enhance welfare gains and reduce grid investment.
Article
Economics
Javier Jorquera-Copier, Alvaro Lorca, Enzo Sauma, Stefan Lorenczik, Matias Negrete-Pincetic
Summary: As countries update their climate ambitions, low-carbon hydrogen production and use present opportunities for emissions reductions and economic development. A case study for Chile shows that integrating hydrogen and electricity networks can lower system costs and enhance renewable integration, but policy support is needed to address concerns related to water and land use.
Article
Economics
Dawit Guta, Hisham Zerriffi, Jill Baumgartner, Abhishek Jain, Sunil Mani, Darby Jack, Ellison Carter, Guofeng Shen, Jennifer Orgill-Meyer, Joshua Rosenthal, Katherine Dickinson, Rob Bailis, Yuta Masuda
Summary: Household solid fuel use is detrimental to health and the environment. The Indian government's PMUY subsidy has successfully promoted the adoption of LPG by millions of households. However, there is limited understanding of the decision-making process to reduce solid fuel use after transitioning to cleaner fuels. This study found that factors such as household wealth, social status, education level, and the prevalence of LPG use in the village are positively associated with LPG consumption and the discontinuation of solid fuel use. On the other hand, factors such as distance to LPG refill delivery, household size, and the PMUY subsidy are negatively associated with the share of LPG use.
Article
Economics
Nicolas Morell-Dameto, Jose Pablo Chaves-Avila, Tomas Gomez San Roman, Pablo Duenas-Martinez, Tim Schittekatte
Summary: This paper assesses the performance of differently implemented forward-looking network tariff designs and proposes an innovative coordination mechanism to increase predictability in a future with many flexible customers. The study reveals that if large shares of customers synchronize their responses to highly time-varying and locational-specific network charges, it can lead to unexpected reinforcements.
Article
Economics
Alexandra Gritz, Guntram Wolff
Summary: Russia's weaponization of gas supplies shook the energy security of Central and Eastern Europe in 2022. The region responded by increasing alternative energy supplies and developing new gas supply routes. Renewable energy, nuclear energy, and hydrogen play important roles in the long-term. Mitigating the impact of this shock requires the EU to prioritize the integrity of its energy market.
Article
Economics
Jaroslaw Kantorowicz, Marion Collewet, Matthew DiGiuseppe, Hendrik Vrijburg
Summary: Economic costs are a major political obstacle to investing in climate change mitigation and adaptation measures. The method of financing plays a crucial role in determining public opposition to government green investments, with debt financing being less opposed than broad-based taxes. This study suggests that credit market tools, such as green bonds and debt for climate swaps, can be politically efficient in increasing support for green financing. Carbon taxes and wealth taxes are found to be the most preferred options.
Article
Economics
Kun Guo, Liyuan Luan, Xiaoli Cai, Dayong Zhang, Qiang Ji
Summary: This paper investigates China's energy trade stability using a survival analysis approach. It finds that the energy trade linkages between China and 153 other countries are complex and unstable, with short periods of trade with many countries. Geopolitically risky regions, such as the Middle East and Africa, have the lowest trade stability. Climate risks have significant effects on energy trade stability. The paper proposes several policy options to improve energy trade stability in China, with special attention to increasing global climate risks.
Article
Economics
Simona Bigerna, Piyush Choudhary, Nikunj Kumar Jain, Silvia Micheli, Paolo Polinori
Summary: This study estimates the willingness to pay of Indian urban consumers for a continuous supply of electricity using contingent valuation method. The findings show that the amount consumers are willing to pay depends on the duration of power outages, with households preferring shorter outages. Income and environmental attitude also positively influence higher willingness to pay. These insights can inform policymakers in designing more reliable and customer-centric energy generation and distribution models.
Article
Economics
Temilade Sesan, Unico Uduka, Lucy Baker, Okechukwu Ugwu, Ewah Eleri, Subhes Bhattacharyya
Summary: This study examines the impact of the regulatory framework on rural electrification and universal energy access goals in Nigeria's mini-grid sector. The findings suggest that while the current framework has fostered sector growth, additional measures are necessary to ensure equitable distribution of access among rural populations.
Article
Economics
Rui Shan, Noah Kittner
Summary: Energy storage is a cornerstone in decarbonization planning as it reduces operational costs and greenhouse gas emissions, while enhancing resilience and renewables integration. However, storage developers in different regions have varying economic and environmental considerations, thereby requiring policy intervention to achieve long-term emission reductions.
Article
Economics
Tung Durmaz, Sevil Acar, Simay Kizilkaya
Summary: This study investigates the phenomenon of strategic capacity withholding in the Turkish electricity market and its relationship with the capacity remuneration mechanism. The empirical results provide strong evidence of strategic capacity withholding and show that the capacity mechanism contributes to the duration of failures. The study offers important insights for policymakers, including the implementation of a random verification mechanism and restructuring of the capacity mechanism in Turkey.
Article
Economics
Tii N. Nchofoung
Summary: The study finds that oil price shocks have a negative impact on Africa's energy transition, particularly in rural areas and net crude oil exporting countries. However, oil price shocks cannot explain the urban-rural differences in clean energy access. Therefore, increasing investment in clean energy and technologies in rural areas is necessary to enhance the resilience of the energy sector to oil price shocks.
Article
Economics
Najia Saqib, Muhammad Usman, Ilhan Ozturk, Arshian Sharif
Summary: This study examines the impact of environmental technologies, financial growth, and energy use on ecological footprint and green growth. Environmental innovation and renewable energy deployment contribute to green growth, while financial expansion and non-renewable energy use have negative effects on the environment. The study also identifies causal relationships between different factors.
Article
Economics
Yessica C. Y. Chung, Noxolo Kunene, Hung-Hao Chang
Summary: The Renewable Energy Certificate (REC) is considered an innovative technology for building a green society. This study investigates the impact of REC purchases on stock return and volume in Taiwan between 2017 and 2021. The findings suggest that REC purchases have a positive effect on stock returns of manufacturing firms but not service firms. The frequency of REC purchases is also an important factor in the relationship between REC purchase and firm value. Additionally, the study reveals that public attention to environmental pollution plays a crucial role in positive stock returns and volume, while ESG disclosure is negatively associated with returns and volume.
Article
Economics
Seife Ayele, Wei Shen, Yacob Mulugetta, Tadesse Kuma Worako
Summary: This paper addresses the challenges of governing energy procurement from a mix of non-hydropower renewable energy sources supplied by independent producers. Building on political economy analysis and five case studies of independent producer projects from Ethiopia, it seeks to understand the root causes of the protracted delays and limited extent of procurement by independent producers. The key contestations lie in managing long term contracts, risk, uncertainty and in developing the institutional and human capacity to transition.