PhD on compensation mechanisms to mitigate risks for offshore wind developers

KU Leuven is among the best 100 universities in the world according to both Times Higher Education World Rankings and QS World University Rankings. It can look back on a long tradition of pioneering research and high-quality education. Within the Electrical Energy Systems and Applications (Electa) division of the Department of Electrical Engineering (ESAT) at KU Leuven, a new but growing research team led by prof. Leonardo Meeus conducts research on the latest developments in European electricity markets using regulatory impact assessments and optimization models. The team collaborates closely with the Electricity Area of the Florence School of Regulation, which focuses on applied research, policy events, and training on the most topical electricity policy and regulatory issues.

Our projects aim to be at the interface between the world of practice and traditional academic research. We are committed to fostering a diverse and inclusive working environment that fosters teamwork and growth.

For more information, visit https://research.kuleuven.be/en/career/phd, https://www.esat.kuleuven.be/electa/information and https://fsr.eui.eu/energy/electricity/.

Project

The development of offshore wind energy hubs, such as the Princess Elizabeth Island in Belgium, is expected to play an important role in reaching the European Union’s ambitious energy and climate targets. To ensure an efficient integration of these offshore generation hubs and related grid capacity in the EU internal energy market, offshore bidding zones have been put forward. However, the introduction of these offshore bidding zones will bring volume and price risks for offshore wind farms and is therefore often proposed in combination with a compensation mechanism to tackle these risks. In this context, the recent Electricity Market Design reform introduces the concept of Transmission Access Guarantees (TAG) as a compensation mechanism that redistributes congestion income from Transmission System Operators (TSOs) to hybrid offshore wind farm developers. Although the increasing relevance of TAG, academic literature on the topic is currently limited, and many questions remain about their optimal design and impact on involved stakeholders. This PhD aims to contribute to this knowledge gap by:

• Exploring the conditions and magnitude of the risks faced by offshore wind developers, by examining when and how congestion restricts the access wind generation to onshore bidding zones and creates price collapses in offshore bidding zones.
• Developing optimisation models to examine different TAG schemes with design parameters such as the conditions to activate the compensation, the volume to be compensated, the compensation price and the party responsible for the payment. The models will represent the current market configuration and transmission system in Belgium and the neighbouring countries.
• Assessing the efficiency of different TAG schemes in mitigating the risks faced by offshore wind developers and examining possible consequences of TAG on other stakeholders, such as market participants and TSOs. The impact on the overall market efficiency (generation volumes, demand volumes, and resulting varying prices) will also be analysed.

Profile

As the ideal candidate:

• You have a Master of Science degree in engineering or a related field, preferably from a reputable institute.
• You are motivated to work independently, as well as in team, on the design of transmission access guarantees for offshore wind developers, starting from the Belgian context.
• You are communicative and can express yourself fluently in English, both orally and in writing.
• You are eager to disseminate your research results through scientific publications, stakeholder interactions and conference presentations.
• You are interested in contributing to teaching activities for a limited number of hours.
• You are willing to live in Belgium. The primary workplace would be Electa in Leuven, but telework is possible

Your background and experiences match the following expectations or allow you to achieve them quickly:

• Have a solid background in the basic features of EU electricity markets and an affinity with EU energy institutes, policy and regulation.
• Become an expert on the latest evolutions in EU energy regulation and market design.
• Gain specific expertise on offshore systems and market design, including transmission access guarantees.
• Continuously align your project with the latest policy and stakeholder debates.
• Become proficient in the engineering mathematics required to execute the project, such as optimisation models and data analyses.
• Become highly skilled in the programming languages Julia, and others if needed.

Offer

This PhD position is part of the Belgian ETF project CROCODILE (Cross-border Coordination of Offshore Grids under Different Designs for Day-Ahead and Ancillary Service Markets), with VITO and Otary as a close project partner.

Within this context, we offer:

• A four-year doctoral scholarship starting in November 2024 with a net monthly salary of approximately €2500, leading to a PhD degree in Engineering, if successful.
• Multiple benefits (health insurance, access to university infrastructure and sports facilities, etc.).
• A research visit to the Florence School of Regulation in Italy, if desired.
• Guidance from experienced faculty, who will teach you the fundamentals of applied, academic research using different research methodologies.
• Training on research methodologies and soft skills through access to internal and external courses.
• The opportunity to develop a professional network and contribute to the EU regulatory debate by attending conferences and interacting with stakeholders.
• The opportunity to work in a small but ambitious team that encourages personal growth, creativity and taking responsibility.
• The opportunity to gain experience in the role of project management, after a sense of organizational skills have been demonstrated.

Interested?

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