The first strand of my research investigates the effects of renewable penetration in the European electricity market in 2030. My analysis shows that renewable sources have different degrees of profitability and should be adopted in different countries. In particular, solar PV is profitable in southern Europe, whereas wind onshore is profitable in almost all the countries. Wind offshore is my analysis doesn’t result profitable under all the investment cost assumptions undertaken.
My results have been discussed in conferences and seminars and published in a working paper submitted for publication. In order to better exploit the potential of my analysis I joined for three months the International Energy Agency (IEA). During this time, I focused on the effects of increased transmission networks in the Union. Results of this research have been published in the 2018 edition of the World Energy Outlook and show that efficient use of interconnection reduces system costs significantly. Moreover, investments in renewable generation should be undertaken considering other existing targets, such as the coal and nuclear phase out planned by several countries.
Working on the European market, I've also investigated the impact of expansions in the transmission network and the effect of storage. My analysis shows that storage presents significant gains for consumers and for renewable producers, but the magnitude of these effects crucially depends on the costs associated with batteries and their availability.
Another working paper I wrote during my fellowship analyses the relation between wind generation and electricity prices. My results show that wind generation reduces the spot prices, increases balancing costs but the final effects (taking the subsidies paid by the consumers to finance the investment in wind turbines) is positive. Also this work has been presented in conferences and seminars.
Finally, I am currently working on a project that analyses the relation between co2 emissions, carbon pricing and renewable targets. Preliminary results show that Germany and Poland are pivotal in Europe to achieve decarbonisation: emission abatement in the power sector may be reduced only if these two countries seriously commit to reduce coal generation. A working paper with the results of this analysis will be released soon.
The second strand of my research focus on the role of consumers in the electricity markets. There is a great debate in the Union about the role of consumers and the impact on utilities of changes in the electricity tariffs: this part of my analysis investigate several aspects related with consumers’ behaviour and choices.
In a first work (released as a working paper and presented in several seminars and conferences) I focus on the relation between loss averse consumers and their preferences for a continuous-time tariffs. This preference changes the choices that both producers and retailers should undertake in order to sell electricity to the consumers.
In another work, I focus on the determinants behind the choice of efficient vehicles and the impact of a new gasoline taxation. The rationale behind this work is that taxation should follow the gasoline price, in order to correctly incentive consumers to buy fuel-efficient cars. Finally, always in the transport sector, I am currently working on electric vehicles, identifying the determinants of the price of electric cars in several European countries. In particular, I am focusing on the role of incentives and bonus given by different states in order to check which proportion of these policies is passed through the consumers by increasing the selling price.
The last two works are still work in progress, but working papers will be released soon and have been discussed in seminars and conferences during the last year.
