Stefan Trück

Abstract: 

The transition towards renewable electricity generation is fundamentally changing how wholesale electricity prices are formed. This presentation examines the evolving role of marginal generation technologies, the value of operational flexibility, and the strategic bidding behaviour of market participants in the Australian National Electricity Market. Using high-frequency market data and advanced econometric methods, we quantify flexibility premiums and show how generation portfolio composition influences bidding strategies and market-clearing prices. Finally, we introduce a theoretical model that explains the strategic interaction between flexible and renewable generation assets in competitive electricity markets. The findings provide new insights into electricity price formation and have important implications for market design, regulation, and the ongoing energy transition.

Stefan Trück is a Professor of Business Analytics and Director of the Transforming Energy Markets Research Centre at Macquarie University. Previously, he has held positions at Queensland University of Technology and Karlsruhe Institute of Technology in Germany where he received a PhD in Business Engineering. Stefan’s research interests focus on risk management, financial econometrics and business analytics. His is a world leading expert in the area of electricity markets and energy finance, while his research also comprises the areas of and commodity markets, credit risk, systemic risk, emissions trading, climate change economics and international financial markets. He has published in many high impact journals. He has also worked in various consulting projects in the area of energy and financial risk for organisations such as Deutsche Bank, Deutsche Bundesbank, Australian Energy Market Commission, Saudi Electricity and Co-Generation Regulatory Authority, Maybank, CRC Limited, just to name a few. He also has received various research grants, including two Discovery Grants from the Australian Research Council (ARC) plus an ARC Future Fellowship, one of the most prestigious awards for mid-career researchers in Australia.