Policy concerns about price volatility, seasonal storage, and shocks go hand in hand when considering the transformation to a decarbonized energy system. Will price volatility in decarbonized energy systems be greater than today due to Variable Renewable Energy (VRE)? Even if battery storage is cheap, will we still need other types of energy storage to meet climate-neutrality objectives? If we do not have perfect foresight, which situation is preferred to deal with shocks in times of VRE drought: being underprepared or overprepared? We revisit these policy concerns in the academic literature and advance a stylized model to reveal additional interesting insights.
In this online event hosted by Leonardo Meeus we will discuss these policy concerns and the potential implications for policymakers.
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