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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, 06:50:21pm CEST (Norway)

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Daily Overview

Session

Renewable energy 1
Location: Auditorium Q
Session Chair: Denizhan Guven, Istanbul Technical University

Presentation 1

Against the Wind: The Economic Cost of Renewable Intermittency under Transmission Constraints

Ron Chan¹, Takeo Hori², Takahiko Kiso³

1: The University of Manchester; 2: Tokyo Institute of Technology; 3: University of Aberdeen

Discussant: Sulaman Muhammad (Brandenburg University of Technology, Germany)

The need to incorporate renewable energy raises challenges in the efficiency and reliability of the electricity market. In this paper, we focus on the two challenges facing the incorporation of renewable energy in the wholesale electricity market: the intermittency of renewables and the transmission constraints between regions. We first demonstrate the complementarity property of battery storage and transmission infrastructure improvements that address these two margins in improving economic efficiency. Using market data from ERCOT, we estimate a simple electricity market model to recover unobserved market fundamentals such as transmission constraints to quantify their marginal benefits and complementarities. Our findings reveal that both reducing renewable intermittency and expanding transmission capacity significantly decrease operating costs, with a more pronounced effect observed in the former. Most importantly, we find the economic significance on the interaction of the two. The policy experiment suggests an increase in the marginal benefits of improvements in transmission capacity when battery storage reduces the problem of renewable intermittency, highlighting the importance of simultaneous investment in storage and transmission for effective implementation of energy policy.