The Downside of Renewable Energy
Renewable energy sources – such as wind and solar power, have made it possible for us to generate electricity in more environmentally-friendly ways. With the substantial decline in the costs of renewable technologies in recent years, the renewable industry has reached a fundamentally new stage in its development. A growing number of countries are adopting policies to encourage the growth of renewables, and major businesses are embracing renewable energy in a big way.
However, the proliferation of renewable energy installations can also lead to unintended consequences – one such concern is ‘negative energy prices’.
Helen Zhou is an Assistant Professor of Operations Management at the SMU Lee Kong Chian School of Business, specialising in energy and sustainable operations research. In this podcast, she discusses the findings of her research on renewable energy operations. She believes that having a good understanding of how negative electricity prices drive economic incentives can help policy-makers and energy merchants make better decisions.