Cesare Pozzi

Integrating renewable energy sources into electricity markets: Power system operation, resource adequacy and market design

Focusing on the Italian power system, the article examines how the national regulatory framework has been modified to effectively accommodate and further increase the share of renewable energy in the energy mix while preserving system reliability. This paper argues that operational changes and regulatory measures adopted so far, which are mainly directed to create a level playing field between different energy sources, constitute a short-term response, and thus of limited effectiveness while increasing cost for consumers. To intensify the de-carbonization process of the Italian power system a more fundamental revision of the current market design is required. In this view, an essential ingredient is the future expansion of the electricity grid starting from a clear recognition of energy mix that we intend to reach in the mid/long term.

Infrastructure and Economic Growth: What About the Future?

New infrastructure investments are deemed to be essential in any policy to contrast the current economic crisis and to boost economic growth. However, the relationship between infrastructures and economic growth is far more complex. To be effective, infrastructural policies thus require a deep analysis of the causal links between infrastructure and economic system. In this perspective, the article points out that a change is necessary in the way economic theory deals with infrastructural investments to take into account their strategic relevance. Secondly, it is briefly analyzed the potential role of the infrastructural policies to speed up the structural change required to exit the current economic crisis.