Guest Speaker: Afzal Siddiqui, Professor at the Department of Computer and Systems Sciences, Stockholm University, Sweden
When: Friday October 15, 2021, 11am to noon ET
Where: HEC Montréal, Hélène-Desmarais Room (1st level, Blue section); 3000, chemin de la Côte-Sainte-Catherine, Montréal
Moderated by Pierre-Olivier Pineau, Professor, Chair in Energy Sector Management, HEC Montréal.
Summary: Increased penetration of intermittent variable renewable energy sources (VRES) requires variability management, which often refers to storage and transmission investment. However, the cost of damage from emissions is overlooked in favour of VRES targets. We use a bi-level framework to devise transmission plans that directly include the cost of damage from emissions. Our upper level comprises a welfare-maximising transmission planner who internalises the damage cost. At the lower level, profit-maximising firms invest in VRES capacity and operate their fleet of assets. We implement problem instances for a Western European test network in order to examine how the cost of damage from emissions, market power, and existing generation assets affect transmission expansion when integrating VRES. Coauthors : Afzal Siddiqui1,2, Makoto Tanaka3, Yihsu Chen4; 1Stockholm University, Sweden, 2Aalto University, Finland, 3National Graduate Institute for Policy Studies (GRIPS), Japan, 4University of California, Santa Cruz, USA.
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