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: 24th Aug 2026, 01:53:16am WEST
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Daily Overview |
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Electricity Markets and Regulation: The Case of Renewables Location: B010 Session Chair: Xingchi Shen, Shanghai Jiao Tong University | |
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How Much Does Grid Stability Cost? Evidence from a Dynamic Entry Game in Electricity Markets UC Davis, Agricultural and Resource Economics As electricity grids decarbonize, fossil-fuelled generators that supply stability as a by-product of energy are pushed out of merit, forcing operators to source it from costly network equipment or by running those generators out of merit anyway. While there is substantial financial outlay to acquire stability from alternative sources in grids across the world, there is little understanding of the economic trade-off of these alternatives. I study South Australia, among the world’s fastest-decarbonizing grids. Estimating gas-generator costs from a dynamic entry game (Ciliberto, Murry, et al, 2021), I re-solve the market with and without the need for stability. The economic cost of stability is A$19.2 million per year, approximately 1.7% of energy revenues. The state’s A$180 million synchronous condensers saved at most A$3.0 million per year, breaking even only at a negative discount rate. These results provide insight on a cost-effective way to support the decarbonization of electricity grids. | |