PhD Position on Adequacy and Affordability in Future Electricity Markets

PhD Position on Adequacy and Affordability in Future Electricity Markets

Do you want work on the future of electricity markets?

Do you have solid quantitative and analytical skills that you want to develop further in an international setting?

Job Description

The 2022 energy crisis in Europe made painfully clear that electricity markets leave consumers exposed to extreme price risks. Even in a future electricity system free of fossil fuels, prolonged periods without wind and sun may lead to extreme electricity prices, which consumers are unable to hedge in current electricity markets. At the same time, transmission system operators are voicing concerns about the availability of sufficient back-up capacity in the near future. While such calls of distress should attract investments in new capacity, market participants are reluctant to commit capital considering the unfavorable economics and the absence of a clear market, regulatory and policy framework. Periods of little output from renewables may lead to very high electricity prices, further contributing to consumers' risk exposure.

In this PhD, we focus therefore focus on a key challenge in this domain: how can we design efficient long-term markets and products that simultaneously ensure investments in sufficient back-up capacity and shield consumers from excessive price risks?

To address this question, you will first evaluate current long-term contracts and markets in the electricity sector. You will perform this analysis together with a large set of stakeholders in the MODES project. Next, you will develop state-of-the-art equilibrium and optimization models to capture market clearing and price formation processes, market distortions and policy interventions. These models allow addressing policy-relevant research questions around long-term contracting, capacity remuneration mechanisms and affordability for consumers. Risk allocation is a central theme throughout the PhD trajectory.

This PhD position is funded under the MODES project. In this project, we develop a charcoal sketch of the future governance structure of the Dutch energy system together with a large set of stakeholders, ranging from regulation in the offshore environment to engaging consumers in the heat transition. Electricity market design is a focal point in MODES.

Your daily supervisor and promotor will be Kenneth Bruninx, Laurens de Vries will be your promotor. You will join a lively community of internationally renowned interdisciplinary energy researchers in the Department of Engineering Systems and Services at TU Delft. Our faculty hosts a diverse group of people from different countries and disciplines, and we welcome candidates that contribute to and enjoy this diversity.

Job Requirement

You must be able to demonstrate:

• Masters degree in science, engineering or economics (must have been awarded by the agreed-upon starting date of the PhD).
• Strong quantitative and analytical skills.
• Very good written and spoken communication skills in English (Dutch is not required).

Bonus points if you have:

• Programming experience in Julia, Python or a similar language.
• Prior research experience, especially in energy system/market modelling or other energy-related research.

TU Delft (Delft University of Technology)

Delft University of Technology is built on strong foundations. As creators of the world-famous Dutch waterworks and pioneers in biotech, TU Delft is a top international university combining science, engineering and design. It delivers world class results in education, research and innovation to address challenges in the areas of energy, climate, mobility, health and digital society. For generations, our engineers have proven to be entrepreneurial problem-solvers, both in business and in a social context.

At TU Delft we embrace diversity as one of our core values and we actively engage to be a university where you feel at home and can flourish. We value different perspectives and qualities. We believe this makes our work more innovative, the TU Delft community more vibrant and the world more just. Together, we imagine, invent and create solutions using technology to have a positive impact on a global scale. That is why we invite you to apply. Your application will receive fair consideration.

Challenge. Change. Impact!

Faculty Technology, Policy & Management

The Faculty of TPM provides an important contribution to solving complex technical-social issues, such as energy transition, mobility, digitalisation, water management and (cyber) security. TPM does this with its excellent education and research at the intersection of technology, society and policy. We combine insights from both engineering and social sciences as well as the humanities. TPM develops robust models and designs, is internationally oriented and has an extensive network of knowledge institutions, companies, social organisations and governments.

Conditions of employment

Doctoral candidates will be offered a 4-year period of employment in principle, but in the form of 2 employment contracts. An initial 1.5 year contract with an official go/no go progress assessment within 15 months. Followed by an additional contract for the remaining 2.5 years assuming everything goes well and performance requirements are met.

Salary and benefits are in accordance with the Collective Labour Agreement for Dutch Universities, increasing from € 2872 per month in the first year to € 3670 in the fourth year. As a PhD candidate you will be enrolled in the TU Delft Graduate School. The TU Delft Graduate School provides an inspiring research environment with an excellent team of supervisors, academic staff and a mentor. The Doctoral Education Programme is aimed at developing your transferable, discipline-related and research skills.

The TU Delft offers a customisable compensation package, discounts on health insurance, and a monthly work costs contribution. Flexible work schedules can be arranged.

Additional information

For more information about this vacancy or the application procedure, please contact Kenneth Bruninx (k.bruninx@tudelft.nl). No applications by email.