The role of economists in the energy transition is substantial but often overlooked. To address this, on May 23, economists and energy industry professionals gathered for the Impact Day: Energy Transition, organised by Erasmus School of Economics.
The event highlighted the potential contributions of the economic discipline to the energy transition by bringing together experts from the departments of business economics and econometrics, along with industry professionals.
The event began with moderator Rick van de Kleij engaging the diverse audience about their sectors and roles in the energy transition. Participants included representatives from energy companies, financial institutions, government, universities, and consultancies, with various Erasmus School of Economics alumni present.
Dr Bas Karreman, Director of Engagement at the Erasmus School of Economics, highlighted the significance of the Erasmus Hub! waterfront location in Rotterdam South, a symbol of the city's maritime legacy. He stressed that Erasmus University Rotterdam and Erasmus School of Economics are committed to strong partnerships with the city to contribute to finding solutions to societal challenges. Dr Ronald Huisman, organiser of the event and energy finance specialist, underscored the important and diverse expertise economists can offer in relation to the energy transition. With the Impact Day, he aimed to foster collaboration and drive the energy transition forward.
Keynote Michiel Nijdam (Port of Rotterdam)
The day began with a presentation from Erasmus University Rotterdam-alumnus Dr Michiel Nijdam of the Port of Rotterdam. With a background in port and transport economics from his time at Erasmus University Rotterdam, he underscored the importance of economics in his daily work. His presentation highlighted the Port of Rotterdam's central role in the energy transition. As a vital hub handling 15% of EU imports and contributing significantly to Dutch CO2 emissions, the port faces both challenges and opportunities in moving towards sustainable energy. Despite these challenges, the port is leading the charge towards sustainability with initiatives like CO2 capture, phasing out coal plants by 2030, electrifying industry, and utilizing hydrogen.
Break-out Sessions
The programme was packed with two rounds of three break-out sessions, featuring a total of 12 speakers:
Collaborating to Accelerate
In the session "Collaborating to Accelerate," Daniel Lodders (Saman Groep) focused on practical solutions for network congestion through energy hubs, while Leonardo Fuligni (Erasmus Centre for Entrepreneurship) discussed the importance of measuring and supporting entrepreneurial ecosystems. Energy hubs help alleviate network stress, support more sustainable energy generation, and lower energy costs. Fuligni highlighted the importance of collaboration and resource sharing in fostering innovation and growth within entrepreneurial ecosystems.
Implications for Transportation
In the session “Implications for Transportation”, Dr Larissa van der Lugt (UPT) focused on the economic measures port managing bodies can implement for maritime decarbonization, while Linda Punt highlighted the impact of electric vehicles on the electrical grid and the need for smart charging and battery storage. Van der Lugt emphasized the importance of a combination of decarbonization strategies, such as investing in infrastructure for shore power and alternative fuels, optimizing port operations, and collaboration and partnerships. Punt underscored the necessity of robust and flexible strategies to handle the increasing adoption of EVs and ensure efficient grid operation.
Directing Demand
Rob Massuger from Greenchoice and Erasmus School of Economics Econometric Institute’s Dr Olga Kuryatnikova’s presented in the session “Directing Demand”. Massuger explored consumer-driven flexibility solutions to optimize energy use and mitigate grid congestion, while Kuryatnikova delved into the unintended carbon emissions from storage and demand response, offering policy solutions to address these issues. Massuger's project Go-e focuses on scalable flex services, particularly in controlling heat pumps. Kuryatnikova's research highlighted that pricing generators based on their emission rates can reduce pollution and enhance LSA profitability.
Forecasting and Energy Prices
In the session "Forecasting and Energy Prices," Kristiaan Glorie and Dongchen He. He presented innovative approaches to understanding and managing energy markets. Glorie discussed the use of advanced analytics and AI to develop forecasting tools, which help optimize grid operations and balance supply and demand. He focused on the volatility of electricity spot prices caused by inelastic demand and unpredictable renewable supply, making hedging essential.
Scarcity on Electricity Grids
In the session "Scarcity on Electricity Grids," Mark de Kwaasteniet and Cristian Stet addressed critical issues related to grid congestion and power purchase agreements. De Kwaasteniet proposed solutions such as optimizing electricity usage during times of surplus and minimizing it during shortages, emphasizing smart consumption management to reduce the need for extensive grid expansion. Stet discussed the importance and impact of Power Purchase Agreements (PPAs) in the energy market.
Does the Transition Make Us Happier?
In the session "Does the Transition Make Us Happier?" Peter Mulder and Martijn Burger explored the social and psychological aspects of the energy transition. Mulder focused on the inequalities and challenges associated with the transition, emphasizing the need for a faster and more inclusive process. Mulder's analysis revealed that lower-income households often face higher energy costs, even in well-insulated homes, while higher-income households rarely encounter such high costs. Burger examined the role of hope and public support for green energy initiatives, arguing for a hopeful narrative that motivates people to engage proactively in the energy transition.
Presentation: Bas Eickhout
In the run-up to the European elections, Bas Eickhout, leading candidate for PvdA/GroenLinks and the European Greens, managed to fit in a presentation. His presentation "The Energy Transition Demands European Green Industrial Policy" emphasized the climate policy as an economic question. He emphasized the need for cohesive policy to effectively drive the energy transition while maintaining a strong and thriving industry. He addressed geopolitical challenges such as energy price shocks and supply chain issues, highlighted the necessity for a robust economic framework to support green technology investments and ensure businesses adopt sustainable practices, and outlined key pillars including enhanced European coordination for transnational industrial planning.
Closing
In line with the event's goal to highlight the role of economics in the energy transition and Erasmus School of Economics' commitment to engaging with societal and industry partners, Impact Day: Energy Transition showcased how academic insights and industry practices can jointly drive the energy transition.
Impact Day
- More information
If you are interested in working with Erasmus School of Economics or have an innovative (research) idea, contact the Director of Engagement at directorofengagement@ese.eur.nl.
