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Long-Run Power Storage Requirements for High Shares of Renewables: Results and Sensitivities

We use the model DIETER, introduced in a companion paper, to analyze the role of power storage in systems with high shares of variable renewable energy sources. The model captures multiple system values of power storage related to arbitrage, capacity, and reserve provision. We apply the model to a greenfield setting that is loosely calibrated to the German power system, but may be considered as a

In: Renewable and Sustainable Energy Reviews 83 (2018), S. 156-171 | Wolf-Peter Schill, Alexander Zerrahn
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On the Economics of Electrical Storage for Variable Renewable Energy Sources

The use of renewable energy sources is a major strategy to mitigate climate change. Yet Sinn (2017) argues that excessive electrical storage requirements limit the further expansion of variable wind and solar energy. We question, and alter, strong implicit assumptions of Sinn’s approach and find that storage needs are considerably lower, up to two orders of magnitude. First, we move away from

In: European Economic Review 108 (2018), S. 259-279 | Alexander Zerrahn, Wolf-Peter Schill, Claudia Kemfert
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Prosumage of Solar Electricity: Pros, Cons, and the System Perspective

We examine the role of prosumage of solar electricity, i.e. PV self-generation combined with distributed storage, in the context of the low-carbon energy transformation. First, we devise a qualitative account of arguments in favor of and against prosumage. Second, we give an overview of prosumage in Germany. Prosumage will likely gain momentum as support payments expire for an increasing share of

In: Economics of Energy and Environmental Policy 6 (2017), 1, S. 7-31 | Wolf-Peter Schill, Alexander Zerrahn, Friedrich Kunz
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Wind Power and Externalities

This paper provides a literature review on wind power and externalities from multiple perspectives. Specifically, the economic rationale behind world-wide wind power deployment is to mitigate negative externalities of conventional electricity technologies, notably emissions from fossil fuels. However, wind power entails externalities itself. Wind turbines can lower quality of human life through

In: Ecological Economics 141 (2017), S. 245-260 | Alexander Zerrahn
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Long-Run Power Storage Requirements for High Shares of Renewables: Review and a New Model

The purpose of this article is twofold. First, we review model-based analyses that explore the role of power storage in energy systems with high shares of variable renewables. Second, we introduce a new model that is specifically designed for exploring long-term storage requirements. The literature survey focuses on recent contributions in the peer-reviewed energy economics and engineering

In: Renewable and Sustainable Energy Reviews 79 (2017),S. 1518-1534 | Alexander Zerrahn, Wolf-Peter Schill
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Does the Presence of Wind Turbines Have Negative Externalities for People in Their Surroundings? Evidence from Well-Being Data

Throughout the world, governments foster the deployment of wind power to mitigate negative externalities of conventional electricity generation, notably CO2 emissions. Wind turbines, however, are not free of externalities themselves, particularly interference with landscape aesthetics. We quantify these negative externalities using the life satisfaction approach. To this end, we combine household

In: Journal of Environmental Economics and Management 82 (2017), S. 221-238 | Christian Krekel, Alexander Zerrahn
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Network Expansion to Mitigate Market Power

Constrained transmission capacity in electricity networks may give generators the possibility to game the market by specifically causing congestion and thereby appropriating excessive rents. Investment in network capacity can ameliorate such behavior by reducing the potential for strategic behavior. However, modeling Nash equilibria between generators, which explicitly account for their impact on

In: Networks and Spatial Economics 17 (2017), 2, S. 611-644 | Alexander Zerrahn, Daniel Huppmann
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Coordinating Cross-Country Congestion Management: Evidence from Central Europe

We employ a detailed two-stage model to simulate the operation of the Central Eastern European electricity market and network. Implementing different cases of coordination in congestion management between national transmission system operators, numerical results show the beneficial impact of closer cooperation. Specific steps comprise the sharing of network and dispatch information, cross-border

In: The Energy Journal 37 (2016), SI3, S. 81-100 | Friedrich Kunz, Alexander Zerrahn
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Benefits of Coordinating Congestion Management in Electricity Transmission Networks: Theory and Application to Germany

This article analyzes the coordination of congestion management in the electricity grid and identifies the benefits from closer cooperation among Transmission System Operators. Mimicking the German situation with four Transmission System Operators in charge of relieving grid congestion, in particular by redispatch of power plants, we set up a model with shared transmission network constraints.

In: Utilities Policy 37 (2015), S. 34-45 | Friedrich Kunz, Alexander Zerrahn
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On the Representation of Demand-Side Management in Power System Models

DSM (demand-side management) merits increased attention by power system modelers. Numerical models should incorporate DSM constraints in a complete and consistent way. Otherwise, flawed DSM patterns and distorted conclusions on the system benefits of demand-side management are inevitable. Building on a model formulation put forward by Göransson et al. (2014), it is first suggested to include an

In: Energy 84 (2015), S. 840-845 | Alexander Zerrahn, Wolf-Peter Schill
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