Siebel Energy Institute Seminar Series
From Resource to Price: The Case of the Italian Electricity Network and Market
Anna Creti, Université Paris Dauphine
Tuesday, February 14 at 1:00 PM PT
Banatao Auditorium, 310 Sutardja Dai Hall
University of California, Berkeley
Lunch is offered.
Live Broadcast: https://www.youtube.com/citris/live
Abstract:
We empirically investigate the impact of renewable production on congestion using a unique database on the Italian Power Market, where zonal pricing is in place. We estimate two econometric models: a multinomial logit model, to assess whether renewables increase the occurrence of congestion, and a two stage least square (2SLS) model to evaluate the impact of wind and photovoltaics on congestion costs. Our analysis suggests that larger renewable supply in importing regions decreases the probability of congestion compared to the no congestion case, while the reverse occurs when renewable production is located in an exporting region. The 2SLS estimations reveal that the same mechanisms explain the level of congestion costs. Our results also highlight that the magnitude of the congestion effects, both in terms of probability and costs, is very sensitive to the localization of the historical efficient production, mainly hydro power, and to the geographical configuration of the transmission network. Finally, the implications of forecasting and simulating new renewable production, based on data of wind and solar availability, will be discussed.
Speaker Biography:
Anna Creti is a Full Professor at the Université Paris Dauphine, LeDA-CGEMP (Laboratoire d’économie de Dauphine-Centre de Géopolitique de l’Energie et des matières premières) and Director at the Chaire European Electricity Markets. She is a Senior Research Fellow in the Department of Economics at Ecole Polytechnique, and currently is a Visiting Research Fellow at the University of California at Berkeley. She received her PhD in Economics at the Université de Toulouse, her master’s degree at École des Hautes Etudes en Sciences Sociales (EHESS), and her in B.A. in Economics at the University L. Bocconi -Discipline Economiche e Sociali in Milan. She has been a fellow at the London School of Economics, and researcher at the Institut d’Economie Industrielle, Toulouse and has won numerous awards for her work, including the Research Excellence Award at Bocconi University in 2008, 2009, and 2010. She has published in various journals that cover topics in network economics, with a special focus on telecommunications, electricity and gas sectors. Her research interests are in energy economics, industrial organization, regulation theory and organization theory.
About the Siebel Energy Institute
The Siebel Energy Institute is a global consortium for innovative and collaborative energy research. The Institute funds cooperative and innovative research grants in data analytics, including statistical analysis and machine learning, to accelerate advancements in the safety, security, reliability, efficiency, and environmental integrity of modern energy systems and Internet-of-Things (IoT) infrastructures. To maximize the impact of research and its long-term benefits to society, research outcomes will be publicly available and the Institute maintains an active connection to the energy sector through an Industrial Advisory Board. Member universities are Carnegie Mellon University, École Polytechnique, Massachusetts Institute of Technology, Politecnico di Torino, Princeton University, Tsinghua University, University of California, Berkeley, University of Illinois at Urbana-Champaign, and The University of Tokyo.