Electricity Policy and Pricing in the Energy Transition

The global transition towards renewable energy has fundamentally reshaped electricity markets and raised new challenges for market participants and policymakers. Understanding how market design and policy interventions affect investment and operational efficiency in energy markets, and their broader welfare implications, is a central question in modern energy economics.

This dissertation consists of three chapters that study electricity markets and industrial policies in the context of the energy transition. Chapter 2 examines the value of flexibility in electricity markets and analyzes how different market designs affect investment decisions in flexible assets. Chapter 3 proposes an equilibrium model for electricity forward prices with an increasing share of renewable energy sources. Chapter 4 explores how the design of residential solar photovoltaic subsidies affects households' adoption of solar panels, highlighting the importance of accounting for household heterogeneity.