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Debate, 26 May 2015

The economic literature provides vast evidence of how public provision of day care for children below school age increases the labour force participation of mothers. The causal effect of all-day schooling in primary school on maternal supply has been examined less since morning-only schooling is... more

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Debate, 21 May 2015

Small and medium-size enterprises (SMEs) are highly dependent on bank financing, which is why they have been particularly hit by tighter credit conditions in the aftermath of the global financial crisis. Given that SMEs account for about 60% of value added and 70% of employment in the euro area,... more

Dieter Beselt (Copyright)  Windenergie Windkraft Windrad
Press Release, 20 May 2015

Plant operators must sell their electricity themselves – costs of forecast deviations and site-specific changes in revenue make wind power unnecessarily expensive The 2014 reform of the Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz, or EEG) mandates that operators of new large... more

ChrisW (Copyright)  Freileitungsmast Mast Masten
Interview, 20 May 2015

The interview with Prof. Karsten Neuhoff, Ph.D. is published in DIW Economic Bulletin 21/2015. It is available for download as pdf document. More issues of DIW Economic Bulletin more

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Debate, 19 May 2015

Individual health is not only determined by genetic factors, but also by negative or positive events during the life course. For example, children exposed to natural disasters or violent conflicts are more likely to have poor health as adults. Positive external factors, such as nutritional... more

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by Thilo Grau, Karsten Neuhoff, Matthew Tisdale, in DIW Economic Bulletin

The 2014 reform of the Renewable Energy Sources Act (Erneuerbare-Energien- Gesetz, or EEG) entailed that a mandatory direct marketing of green electricity be introduced. According to this law, operators of larger wind turbines must sell their electricity production on the electricity market. In addition to the wholesale price they receive a floating market premium, which is based on the average market value of all wind power in Germany. The mandatory direct marketing affects both the costs incurred, as well as the revenues earned, by the plant operator. The costs of compensating for forecast deviations in particular, as well as the changes in revenue due to differences in site-specific production profiles, create new risks for investors, and can increase financing costs of project-financed wind turbines. The dimensions of these effects were examined in various scenarios. Depending on the underlying assumptions, mandatory direct marketing may create additional support costs ranging from 3 to 12 percent for new wind turbines. Ensuring favorable financing costs should therefore be an important criterion in the further development of the EEG.

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