Energy systems, policies and markets

The transition to the sustainable use of natural resources requires the rapid decarbonisation of energy systems across the globe. Traditionally reliant on highly polluting fossil fuels, our current energy systems must adapt to the influx of innovative new technologies, harnessing power from renewable sources. The energy systems, policies and markets research theme broadly investigates the most promising methods of not only accommodating but accelerating the generation, distribution and use of more sustainable fuels within existing and future systems. With energy related-CO2 emissions accounting for the overwhelming majority of global greenhouse gas emissions, the work conducted within this theme is of paramount importance and is highly policy relevant.

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Research areas

Electricity markets

We’re engaged in a programme of research examining options for reforming electricity markets, focussing on how a ‘Green Power Pool’ (GPP) may be designed and operated in the UK. With support from the Aldersgate Group and the Institute for New Economic Thinking, numerous reports and working papers have been published investigating how a GPP could drive power sector decarbonisaton, while reducing electricity prices and facilitating the electrification of the UK economy. 

The Centre for Net Zero Market Design is a research centre that informs reform on the UK electricity markets.

Transitions modelling

We develop energy models and use related analyses to better understand how we can transition towards net zero in a more sustainable way, both globally and in the UK. Our lab has around 25 members spanning UCL Energy Institute and UCL Institute for Sustainable Resources. We have a range of projects and are members of the UK Energy Research Centre, the HyRES and HI-ACT hydrogen hubs, and the CO2RE hub on greenhouse gas removal.

Sustainable finance

We study how financial, technology and policy elements interact to inform the design of policies that stimulate markets and enable sustainable energy development. Currently, our main research on sustainable finance is supported by the LINKS project, which focuses on the role of climate finance to meet the Paris climate goals and aims to produce guidance for a re-orientation of financial flows towards low-carbon and energy efficiency investments.

Energy systems, policies and markets in teaching

The research conducted within this theme feeds directly through to the teaching of students enrolled on the UCL Institute for Sustainable Resources’ masters programmes, notably Economics and Policy of Energy and the Environment MSc, via three key modules:

• Electricity Market Design for the Energy Transition - The electricity markets module focuses on how power markets have been evolving and could be further reformed to accommodate growing shares of renewables. Using a multi-disciplinary perspective, it reviews the basics of power market design, providing an overview of the most significant challenges faced by the sector and identifying a range of options for reform based on real-world experiences and innovative approaches found in the literature. Starting with the key concepts and the basics of power sector economics, the module introduces the temporal and spatial dimensions of markets while examining the different roles that actors and stakeholders play. The main techno-economic challenges (and opportunities) arising from the increased penetration of intermittent generation together with the decentralised architecture and the demand response paradigm, which alter the physical system and market dynamics, are considered from the perspective of the energy, balancing and ancillary services market design solutions for a high-renewable and deeply decarbonised future.
• Planetary Economics and the Political Economy of Energy and Climate Change - Planetary Economics is a core module, based on the book Planetary Economics written by Professor Michael Grubb. The module arms students with an integrated and interdisciplinary understanding of energy and climate change issues, starting by creating an understanding of the fundamentals of the global energy system, fossil fuels and renewable energy technologies. The module then develops students’ knowledge of the economic and political economy dimensions of tackling environmental problems. The rationale behind the traditional economic approach and instruments applied in attempt to decarbonise energy systems are explained, before introducing the ‘three pillars of policy’. The three pillars draw upon more diverse branches of economics to create a more comprehensive framework which may be leveraged to drive the transformation of energy generation, distribution and use across the world.

• Introduction to Modelling Methods and Scenarios - This core module focuses on the use of models for E3 (energy-economic-environmental) analyses. Such modelling approaches are critical, and at the sharp end of supporting decision makers on how we address some of the big energy-related questions, notably climate change but also energy affordability and security. The module is designed to provide an overview of some of the key approaches to energy analysis, with a focus on modelling, and how such approaches are applied to real world problems.  We aim to provide students with the necessary critical thinking skills to assess what are the appropriate use of models, their limitations and to what research questions they can be applied.

   

Doctoral research (PhD)

The breadth of this theme is reflected in the wide variety of energy-related research projects undertaken by our PhD students.

Researchers