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UoC Forum Energy

The project “Market design and regulation for stochastic electricity supply chains” is funded as an UoC Forum in the framework of the Excellence Initiative. It is a collaboration of the Department of Economics and Industrial Organization, led by Prof. Felix Höffler, and the Department of Supply Chain Management and Management Science, headed by Prof. Ulrich Thonemann. In addition, it involves partners from the departments of Computer Science, Mathematics, Geophysics and Meteorology.

The project aims at providing answers to relevant yet unresolved problems in the field of market design and regulation of stochastic electricity supply chains. Climate change and related efforts to reduce greenhouse gas emissions have recently been posing enormous challenges to all parts of the electricity supply chain, including generation, network services and retailing. One of the main difficulties to achieve reduced greenhouse gas emissions stems from the need to increasingly rely on intermittent and stochastic generation from wind and solar resources. Due to their complex dynamics and interdependencies, they fundamentally jeopardize and question the functioning of traditional approaches. While these challenges are typically tackled in the field of energy economics, they may also be seen from a supply chain perspective. The contribution of this project is therefore to bring together specific energy market know-how and methods from supply chain management to provide novel and innovative results and insights in the field of market design and regulation of stochastic electricity supply chains.

As foreseen, we completed the project end of 2016. The final report can be found here.

Assistants of the Chair participating in this project

Simeon Hagspiel

Jakob Peter

Marius Overath (assisting student)

List of related publications

  • S. Hagspiel, A. Knaut, J.Peter (2017). Reliability in multi-regional power systems –Capacity adequacy and the role of interconnectors. EWI WP 17/07. Link

    Motivated by the EU Commission´s requirement for member states to account for cross-border trade within capacity mechanisms, this work analyzes the contribution to reliability of interconnectors and variable renewable energies. The paper finds that with regional cooperation, firm generation capacity requirements can be substantially reduced.

  • J. Bertsch, S. Hagspiel (2015). Regulation of non-marketed outputs and substitutable inputs. EWI WP 15/06. Link
  • S. Hagspiel (2016). Supply Chain Reliability and the Role of Individual Suppliers. EWI WP 16/05. Link
  • S. Hagspiel (2016). Essays on the Economics and Regulatory Design of Power Systems. Doctoral degree from the University of Cologne, Department of Economic and Social Sciences, received on July 4th 2016. Link
  • S. Hagspiel (2016). Reliability through Spatial Aggregation – The Capacity Value of Wind Power in Europe. Proceedings of the 15th Wind Integration Workshop 2016, Vienna, Austria. Link
  • S. Hagspiel, A. Knaut, J. Peter (2016). The Capacity Value in Systems with Multiple Regions and Technologies. Proceedings of the 15th Wind Integration Workshop 2016, Vienna, Austria. Link
  • J. Bertsch, S. Hagspiel, L. Just (forthcoming). Congestion Management in power systems – Long-Term Modeling Framework and Large-Scale Application. Journal of Regulatory Economics. DOI 10.1007/s11149-016-9310-x. Link
  • J. Bertsch, T. Brown, S. Hagspiel and L. Just (forthcoming). The relevance of grid expansion under zonal markets. The Energy Journal. DOI 10.5547/01956574.38.5.jber. Link