2897. Coordinating the energy transition in the presence of agent failure risks
Invited abstract in session TA-44: Modelling coordination challenges in the energy transition, stream Energy Economics & Management.
Tuesday, 8:30-10:00Room: Newlyn 1.01
Authors (first author is the speaker)
| 1. | Christoph Weber
|
| University Duisburg-Essen |
Abstract
The decarbonization of the energy system is entering a critical phase: not only the international politics have other priorities than climate change. But at the same time deep decarbonization calls for the build-up of entirely new supply chains and grid infrastructures: for low-carbon fuels like green hydrogen, for carbon atoms from sustainable sources (e.g. biogas) or for the disposal of CO2. New technologies, new partnerships, new markets and infrastructures imply substantial risks for the players involved – notably the risks of technology failures or counterpart defaults. The presentation explores the implications of such risks both in a stylized example and in a for-mal framework rooted in stochastic optimization, whereby especially the dual formulation is explored to derive equilibrium market prices. The applications indicate that the presence of such risks may considerably affect the prices observed on the markets – and hence the framework may explain the gap between the current price indications on hydrogen markets and the out-come of energy system models.
Keywords
- Energy Policy and Planning
- OR in Energy
Status: accepted
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