Operational Risk Financialization of Electricity Under Stochasticity

Explore the challenges of integrating renewable energy sources into electricity grids through this one-hour virtual talk by Ronnie Sircar from Princeton University. Delve into a project sponsored by ARPA-E that aims to quantify, allocate, and account for the risks associated with the unpredictable reliability of renewable energy production. Learn about innovative methodologies involving Monte Carlo simulations and grid optimization software to assess system risk and allocate reliability costs to individual renewable assets. Discover how this approach adapts existing risk allocation methods related to Shapley values and its potential impact on day-ahead bid curves and grid optimization. Gain insights into the future of electricity grids, the importance of incorporating stochasticity in risk management, and the computational challenges involved in this cutting-edge research.