PhD defence: Luis Rafael Boscán Flores

This PhD thesis consists of five essays on the economics of Power System Flexibility. In contrast to the technical treatment of the topic, this thesis builds on and makes contributions to several areas of the economic literature, including Contract Theory, Mechanism Design and Combinatorial Auctions, to propose institutional arrangements that enable flexibility. Chapter 1 investigates existing business models for flexibility. Chapter 2 proposes a number of economic postulates to study flexibility as a tradeable commodity. Chapter 3 proposes a model of bilateral trade of demand-side flexibility and analyzes the role of aggregators. Chapter 4 proposes a static bilateral contracting model with bi-dimensional adverse selection to study the problem of procuring flexibility. Chapter 5 extends the Product-Mix Auction (PMA) to handle multiple sellers and buyers in the form of a Product-Mix Exchange (PME) to create a marketplace for flexibility. In addition, it introduces a PME with Vickrey-Clarke-Groves payments, which secures that truthful bidding is a weakly dominant strategy.
 
Supervisor:
Professor Peter Bogetoft
Department of Economics
Copenhagen Business School
 
Secondary supervisor:
Associate Professor Anette Boom
Department of Economics
Copenhagen Business School
 
Assessment Committee:
Professor Dolores Romero Morales
Department of Economics
Copenhagen Business School
 
Professor Per J. Agrell
Louvain School of Management (LSM) and CORE
Université Catholique de Louvain
 
Associate Professor Kurt Nielsen
Department of Food and Resource Economics
University of Copenhagen
 
Thesis:
The thesis is available here.
 
Reception:
The Doctoral School of Economics and Management will host a reception, which will take place immediately after the defence in the The Gallery, Porcelænshaven 26, 2000 Frederiksberg.