Energy

Most energy transition plans assume a predictable future. Our simulations for Germany show that this blind spot leads to underinvestment, more blackouts, and higher costs — with the burden falling hardest on those least able to cope. The right environmental policies can fix this, even within a deterministic planning framework.

A electricity supplier in Alberta deliberately timed ‘emergency’ outages of its power plants to drive up spot prices and boost its profits. Our study shows this strategy cost the province up to $600 million in a single year.

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The pandemic exposed the weaknesses of the current electricity market design. I combine machine learning predictions with econometric models to study the short-term consequences of the crisis in France (Energy Economics, 2022).