Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 10th Sept 2026, 07:06:15pm CEST (Norway)
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Daily Overview |
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Environmental regulation and enforcement Location: Lab 1 Session Chair: Christian Allen Vossler, University of Tennessee | |
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Hedging as a Match-Maker: Unlocking Industrial Demand Flexibility for Renewable Energy Integration DIW Berlin / Technical University Berlin, Germany In this paper we discuss the design of hedging products for electricity to unlock industrial investments in load shifting capacity. These investments enable flexible electricity consumption and play a crucial role for integrating intermittent renewable energy sources. We build a theoretical microeconomic model of investment under uncertainty to examine the investment decision of risk-averse firms under different types of electricity procurement. Specifically, we compare the widely used baseload hedge with a renewable energy profile (REP) hedge - a long-term contract based on generation from a portfolio of renewable installations. We show that under the REP hedge, greater investments in flexibility are incentivized compared to alternative procurement types. The main mechanism is the adaptation of investment decisions to high price volatility, to which the best response is to increase the available flexibility capacity. Numerical simulations further show that while low-cost load-shifting investments are adopted regardless of the hedging product, the REP hedge is essential for unlocking the full potential of load shifting, including higher-cost technologies. | |