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DIW Weekly Report 28 / 2018
The cost of renewable energy technology has plunged in recent years. But the extent to which electricity consumers can benefit from the reduced costs depends on the design of renewable remuneration mechanisms. Calculations of a financing model show that the current sliding premium is leading to increasingly higher risks for investments and in turn, increasing equity requirements. As a result, financing ...
2018| Nils May, Karsten Neuhoff, Jörn C. Richstein
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DIW Economic Bulletin 46/47 / 2017
Due to increasing shares of renewable energies in electricity production, the cost-effective system integration of these installations is becoming more and more important. Technologies and locations are viewed as system-friendly when they are more cost-efficient and easier to integrate because they, unlike other installations, produce at times when electricity is more valuable. This report shows that ...
2017| Karsten Neuhoff, Nils May, Jörn Richstein
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DIW Economic Bulletin 39/40 / 2017
The costs of renewable energy technologies have fallen sharply. Now the financing costs of new installations are playing an increasing role in the overall cost of Germany’s energy transition. This has put the primary focus of support instruments for renewable energy on creating more affordable financing conditions for investments. This report compares the effects of various policy instruments on risk ...
2017| Nils May, Ingmar Jürgens, Karsten Neuhoff
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DIW Economic Bulletin 28/29 / 2015
Climate protection is a global challenge that all countries have a common but differentiated responsibility to address. However, not all governments are willing to commit to targets of equal stringency, and individual countries may put different emphases on carbon pricing in their policy mix. Carbon prices may thus continue to differ over longer time horizons. Therefore, measures to protect production ...
2015| Karsten Neuhoff, William Acworth, Roland Ismer, Oliver Sartor, Lars Zetterberg
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DIW Economic Bulletin 28/29 / 2015
2015
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DIW Economic Bulletin 28/29 / 2015
Since 2007, the European cement and steel sectors have been characterized by substantial surplus production capacity. Hence re-investment in primary production of many materials remains limited and endangers the longer-term economic viability of many plants. Opportunities for innovation and modernization could overcome these challenges. They are linked to new demands for more efficient and lower-carbon ...
2015| Karsten Neuhoff, Andrzej Ancygier, Jean-Pierre Ponssard, Philippe Quirion, Nagore Sabio, Oliver Sartor, Misato Sato, Anne Schopp
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DIW Economic Bulletin 24 / 2015
Up until now, wind turbines have been designed to generate electricity at the lowest possible total cost, independent of this electricity’s market value. With an increasing penetration of wind power in the system, the market value of electricity generated by wind turbines is declining, since wind turbines tend to produce electricity at the same time. For this reason, it will be important in the future ...
2015| Nils May, Karsten Neuhoff, Frieder Borggrefe
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DIW Economic Bulletin 21 / 2015
2015
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DIW Economic Bulletin 21 / 2015
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 ...
2015| Thilo Grau, Karsten Neuhoff, Matthew Tisdale
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DIW Economic Bulletin 19 / 2015
2015