Winterizing power plants pays off for risk-neutral investors in Texas

Katharina Gruber (), Tobias Gauster, Gregor Laaha, Peter Regner and Johannes Schmidt
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Katharina Gruber: University of Natural Resources and Life Sciences
Tobias Gauster: University of Natural Resources and Life Sciences
Gregor Laaha: University of Natural Resources and Life Sciences
Peter Regner: University of Natural Resources and Life Sciences
Johannes Schmidt: University of Natural Resources and Life Sciences

Nature Energy, 2022, vol. 7, issue 5, 398-399

Abstract: Considering the probability of occurrence of an extreme cold event similar to that in February 2021, winterization of the Texan power system pays off for risk-neutral utilities in the medium term. Risk aversion can cause under-investment, and policymakers should therefore take into account extreme event risks in decision-making and implement measures that increase winterization efforts.

Date: 2022
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DOI: 10.1038/s41560-022-01031-8

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