From Resource to Price: The Case of the Italian Electricity Network and Market
Seminar | February 14 | 1-2 p.m. | Sutardja Dai Hall, 310 (Banatao Auditorium)
Anna Creti, Université Paris Dauphine
This talk investigates the impact of renewable production on congestion using a unique database on the Italian Power Market, where zonal pricing is in place. As part of her involvement with the Siebel Energy Institute, Professor Anna Creti will present research that estimates 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. She will show an analysis that 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. She will present results that 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. She will discuss the implications of forecasting and simulating new renewable production, based on data of wind and solar availability.
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 dEconomie 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.
Lunch is offered
Available February 14, 2017: Siebel Energy Institute Seminar. Event will be webcast live