The European Directive on common rules for the internal market in electricity (2009/72/EC) requires all member states to 'ensure the implementation of intelligent metering systems' in order to foster a more active involvement of customers in the electricity market. Such intelligent metering...

Distributed photo-voltaic (PV) generation is one of the pillars of energy transitions around the world, but its deployment in the distribution grid requires costly reinforcements and expansions. Prosumage - consisting of a household-level PV unit coupled with a battery storage system - has been...

This paper offers a non-technical overview of the issues involved when applying cost-benefit analysis (CBA) to hydropower, both in terms of new installations and changing existing regulatory structures. Our focus is on the conceptual and empirical problems of applying CBA to provide decision...

I consider an economy with fossil fuel and renewable energy and energy storage, and search for the conditions that lead to welfare improvements when energy is stored. I then solve for the optimal decision rule and analyze the long-run tendencies of the economy-energy variables. The findings are...

As renewable energy depends on meteorological shocks and is non-controllable, the overall energy production becomes riskier with the rising renewable share. Although this has led to a renewed interest in storage technologies, not much consideration has been given to energy storage due to...

The penetration of Variable Renewable Energies (VREs) in the electricity mix poses serious challenges in terms of management of the electrical grids, as the associated variability and non-dispatchability are in contrast with the requirement that the load be instantaneously equalized by the...

We develop an analytical model to derive the competitive market equilibrium for electricity spot and reserve markets under stochastic demand and uncertain renewable electricity generation. We then derive the welfare-optimal provision of reserves. At first-best, cost of reserve capacity is...

The allocation of research and development (R&D) funds across a portfolio of programs must simultaneously consider uncertainty from research outcomes and from market acceptance of the resulting technologies. We introduce a stochastic R&D portfolio management framework for addressing both sources...

This paper develops an economic theory of optimal grid-scale electricity storage for three distinct applications, referred to as 'supply-side storage,' 'nodal storage', and 'demand-side storage.' Traditionally, grid-scale electricity storage was the exclusive domain of pumped hydro. The...