April 9, 2018: Invited Speaker Seminar: Market Power with Combined Heat and Power Production in the Nordic Energy System

Dr. Afzal Siddiqui
University College London & Stockholm University

Monday, April 9, 2018 at 10:30 am
Room EV002.184

Abstract

The trend toward increasing energy efficiency and variable renewable energy (VRE) production has implications for combined heat and power (CHP) plants, which operate in both the price-driven power market and the district heating (DH) sector. Since CHP will be important in VRE integration, we develop a complementarity model to analyze CHP producers’ roles in integrated markets. We use a Nordic case study to gain insights into (i) the effect of the link between CHP and DH on market power and (ii) market power’s impact on operations in the DH sector. The results indicate that (i) the link of CHP to DH supply can increase market power and (ii) market power can induce shifts in DH production from heat-only to CHP.

Biography

Afzal S. Siddiqui is a Professor of Energy in the Department of Statistical Science at University College London (UCL). In addition, he is a Professor in the Department of Computer and Systems Sciences at Stockholm University and a Visiting Professor in the Systems Analysis Laboratory at Aalto University, Finland. Previously, he was a Senior Lecturer at UCL (2010-2017), a Lecturer in Statistics at UCL (2005-2010), and a College Lecturer in the Department of Banking and Finance at University College Dublin. After having completed his Ph.D. in Industrial Engineering and Operations Research from the University of California at Berkeley in 2002, Afzal served as a Visiting Assistant Professor in the Department of Industrial Engineering and Operations Research at UC Berkeley (2002) and a Visiting Post-doctoral Researcher at the Ernest Orlando Lawrence Berkeley National Laboratory (2002-2003). Afzal's research interests are in energy economics, specifically the application of financial and operational research methods for making decisions under uncertainty and competition. The objective of Afzal's work is to gain insights that will assist producers and consumers to make more informed decisions, e.g., about technology choice and risk management, and to provide policy guidance when designing market mechanisms.