Investment Decisions

The question of how to enable an effective, modern, global energy transition is garnering significant interest in both academic and policy making communities. Composite statistical indices have emerged as a useful class of tools to offer policymakers additional insights into the state and trajectory of energy transitions around the world. In this commentary, we discuss the purpose of energy indices in general and document several prominent examples. We then introduce and place in this landscape the World Economic Forum's Energy Transitions Index (ETI).
Electricity systems based on renewables have an increasing demand for flexibility. This paper considers the potential of power-to-gas to provide flexibility and enhance system integration of renewables. Existing research on power-to-gas typically analyses the system effects of a predetermined power-to-gas unit without endogenising the investment decision. Moreover, insights related to market and portfolio effects of power-to-gas are rare. To this end this work presents a stochastic electricity market model.
Capacity planners in developing countries frequently use screening curves and other system-independent metrics such as levelized cost of energy to guide investment decisions. This can lead to spurious conclusions about intermittent power sources such as solar and wind whose value may depend strongly on the characteristics of the system in which they are installed, including the overall generation mix and consumption patterns.