The work performed from the beginning of the project has focussed on two aims.
The first line of work has been devoted to studying the integration of renewable power in electricity markets by looking at detailed hourly data from markets with large renewable generation (supply side). Focusing on wind power, we have produced a new analysis that shows that the costs of integrating renewable power into the grid in the Iberian peninsula have remained small (Figure 1). We show new evidence of the decomposition of these costs and the behavior of the power plants providing reliable services. Focusing on solar power, we have examined how the expansion of transmission infrastructure in Chile has enabled the construction of solar plants in Atacama. We provide an economic framework to study the cost-benefit analysis of transmission lines while accounting for investment effects that could be anticipated. We use k-means tools to construct a simple but realistic model of the Chilean electricity market and find that investment effects are critical in assessing the cost and benefits of transmission infrastructure. On the opposite side of decarbonization, how to phase out coal and gas generation is a challenge. Using data from the US, we build a model of investment decisions to examine to which extent regulatory frameworks are delaying the phase-out of coal power.
The second line of work has been devoted to understanding the impacts of the energy transition on households, focusing on equity impacts (demand side). Using detailed smart meter data from millions of households, I have developed a new estimator of unobserved income to improve our understanding of winners and losers during the energy crisis. Using more aggregate consumer expenditure surveys from thousands of households, we have examined the equity implications from broader energy policies during the energy crisis that affect other goods (gasoline, natural gas). We have also used detailed consumption hourly data to understand how households respond to dynamic pricing, finding that consumers responded substantially to the implementation of time-of-use pricing in Spain.
In addition to these two lines of work, I have developed a conceptual framework to analyze climate policies, highlighting the trade-off between cost efficiency, effectiveness, fairness, and long-term considerations.
