In this webinar, which featured the work of Robert Idel, graduate fellow at the Center for Energy Studies, our experts considered the need for new solutions as electricity markets around the world come under increasing pressure to successfully incorporate significant volumes of wind and solar energy. Electricity is seen as a potential replacement for other fuels in transportation, residential and commercial heating applications, and various industrial applications. At the same time, the policy commitment — which has been most pronounced at scale in the European Union — is that electricity be generated by intermittent renewable sources such as wind and solar. All this would require a tremendous expansion in electricity-generating capacity, transmission networks and storage. This not only presents some widely discussed technical and engineering obstacles, but also economic challenges, since those renewable sources generate electricity at essentially zero marginal cost. Under these circumstances, current pricing mechanisms will often produce a zero price for electricity, thereby raising the question of how firms can earn revenue to recover already sunk capital costs and pay for significant future investments.
This event was co-sponsored by the Baker Institute's Center for Energy Studies and the International Association for Energy Economics as part of a special graduate and post-doctoral fellow webinar series. Follow @CES_Baker_Inst on Twitter and join the conversation online with #BakerEnergy.
12:00 p.m. — Presentation
12:30 p.m. — Q&A
Graduate Fellow, Baker Institute Center for Energy Studies
Peter Hartley, Ph.D.
Baker Institute Rice Faculty Scholar; George A. Peterkin Professor of Economics, Rice University
Raúl Bajo Buenestado, Ph.D.
Nonresident Scholar, Baker Institute Center for Energy Studies; Assistant Professor, Department of Economics, University of Navarra, Spain