3 questions to Anna Creti

Published on 27 May 2019

for the upcoming release of her book Economics of Electricity. Markets, Competition and Rules co-written with Fulvio Fontini

Why a book on electricity economics?
I have followed the evolution of the electricity sector in Europe since its opening to competition, and taught about market design, competition and regulation issues for many years. I decided then to write this manual to transfer my knowledge to students from different disciplines, such as economics, engineering or political science. I thank my co-author Fulvio Fontini for convincing me to embark on this adventure!

You devote a full chapter to the link between the electricity market and global warming. What are your main messages?
The electricity sector is facing several issues related to global warming. Efforts to produce low-carbon electricity by switching from fossil fuels to renewables must not be stopped. Highly carbon-free countries, such as Denmark, continue to produce electricity with a still relatively high CO2 content. This depends on the management of the transmission network and a cross-border flows with neighbouring countries… this is one of the paradoxes I explain in the book.

What can we learn from this on access to energy in Africa, one of the new research areas you are carrying out within the Chair?
The use of renewable energy, the control of intermittency, but also a vision of the efficient and effective electricity sector, where markets and rules are coordinated, are the ingredients about which research at the Chair is being conducted, taking into account the challenge of access to energy in Africa.

A bonus question about your new position at the Chair. Beside research topics on access to energy in Africa, what are your priorities for the future development of the Chair?
In terms of research, we will pay greater attention to issues related to green finance, or the links between the digital economy, energy and the environment, without forgetting the issues of ecological and low-carbon energy transition, carbon neutrality, and the challenges of carbon in the agro-forestry system. Reinforcing the links with existing Chairs and institutions that also address these topics, as well with international networks, are a few priorities for the future developments of the Chair. Last but not least, I would like to thank Christian de Perthuis, founder of the Chair, for entrusting me with this new position.