EP. 285 Inside Grid Congestion: An Aurora Deep Dive

About this episode

The episode discusses the challenges of grid congestion in power markets, focusing on its impact on renewable energy and investment risks.

This week on Energy Unplugged, in the first of our new video series, Richard Howard, Global Head of Research at Aurora Energy Research, is joined by Marc Hedin, Head of Research for West Europe and Africa at Aurora Energy Research, to explore one of the most pressing challenges in power markets today: grid congestion. Together, they unpack why curtailment is rising rapidly across Europe as renewable build-out outpaces grid expansion – and why this is becoming a critical risk for developers and investors. They examine how congestion impacts revenues, from reduced generation to increased volatility, and why traditional modelling approaches often underestimate the risk. The conversation explores how different markets manage congestion – from nodal pricing in the US to redispatch in Europe – and highlights the growing complexity of market design, policy shifts, and grid reform. Looking ahead, they discuss how more advanced modelling can better capture these dynamics, and the strategies available to mitigate risk – including co-location, portfolio optimisation, and smarter siting decisions. You will learn about: Why grid congestion and curtailment are rising across renewable markets…

People in this episode

Host: Richard Howard

Guest: Marc Hedin

Topics covered

• grid congestion
• renewable energy
• power markets
• market design
• investment risks
• modelling approaches

Keywords

• grid congestion
• curtailment
• renewable build-out
• nodal pricing
• redispatch
• market design
• policy shifts
• modelling
• risk mitigation

Mentioned in this episode

Organizations: Aurora Energy Research

Places: Europe, US

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