Edgar Ubaldo Pena, Analyst for the Knowledge Sharing activities of YES Europe, recently attended a seminar organized by Yeees! (Young Energy Economists Engineers Seminar). In this post he tells us the main insights of the event! You might be interested attending the next one?
The seminar focus was on Stochastic Modelling of Power Systems and impacts of 100% renewable
energy systems in energy prices.
In order to develop cleaner energy systems, there is a need to quantify the effects of the variability of renewable energy in energy systems and energy markets. An energy system is composed of the five main processes, namely: generation, conversion, storage, transmission and distribution, that an energy commodity (mainly electricity) must undergo from its initial source/reservoir until the final consumers. Energy markets deal with the trade dynamics at each individual process to ensure economic efficiency.
One important aspect is to determine what is needed in other to favor competitive electricity prices for consumers in an energy system that has a high, usually more than 50%, renewable energy penetration. “Stochastic Modelling” is a tool that is been used to design energy system configurations and minimize energy costs. The word “stochastic” means that the computational model is set up with some unforeseeable parameters such as wind or solar production that are restricted by probability of occurrence like normal distribution etc. Thus, stochastic models give a series of results with differential probability of occurrence rather than only one scenario. Such models can provide us with insights about the effectiveness of current policies, investment allocation, and market rules used today and their impact in final electricity prices, so we can tailor them better in order to achieve desired outcomes.
About the event
Yeees! is a twice-a-year seminar where PhD students present, discuss, and exchange reviews on their research. Topics and research are related to energy engineering and energy economics. Want to know more? --> https://blogs.tu-berlin.de/wip_yeees