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DIW Discussion Papers 1387 / 2014
The 2014 reform of the German Renewable Energy Act introduces a mandatory shift from a fixed feed-in tariff to a floating premium system. This is envisaged to create additional incentives for project developers, but also impacts revenues and costs for new investments in wind generation. Thus uncertainties for example about balancing costs and the impact of the location specific generation profile on ...
2014| Matthew Tisdale, Thilo Grau, Karsten Neuhoff
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DIW Discussion Papers 1363 / 2014
This paper analyzes the trade-offs for using feed-in tariffs or tenders to remunerate different scales of solar photovoltaics (PV) projects. In recent years, European countries increasingly combined feed-in tariffs for small renewables systems with tenders for large installations. This study develops an analytic framework to quantify deployment effectiveness of responsive feed-in tariff adjustment ...
2014| Thilo Grau
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DIW Discussion Papers 1271 / 2013
In the European Emissions Trading System, power generators hold CO2 allowances to hedge for future power sales. First, we model their aggregate hedging demand in response to changes in expectations of future fuel, carbon and power prices from forward prices. This partial equilibrium analysis is then integrated into a two period model of the supply and demand of CO2 allowances considering also emissions ...
2013| Anne Schopp, Karsten Neuhoff
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DIW Discussion Papers 1196 / 2012
In the European Emission Trading scheme the supply of allowances exceeds emissions - cumulating, according to our estimates, in a surplus of 2.7 billion tonnes by 2013/2014. We find that initially the surplus was acquired by power companies so as to hedge future carbon costs. As the surplus exceeds this hedging demand, additional allowances need to be acquired as speculative investment. This requires ...
2012| Karsten Neuhoff, Anne Schopp, Rodney Boyd, Kateryna Stelmakh, Alexander Vasa
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DIW Discussion Papers 1189 / 2012
This paper reviews the adjustments of the feed-in tariff for new solar photovoltaics (PV) installations in Germany. As PV system prices declined rapidly over the last years, the German government implemented automatic mechanisms to adjust the support level for new installations in response to deployment volumes. This paper develops an analytic model to simulate weekly installations of PV systems ?30 ...
2012| Thilo Grau
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DIW Discussion Papers 1166 / 2011
Integrating large quantities of supply-driven renewable electricity generation remains a political and operational challenge. One of the main obstacles in Europe to installing at least 200 GWs of power from variable renewable sources is how to deal with the insufficient network capacity and the congestion that will result from new flow patterns. We model the current methodology for controlling congestion ...
2011| Karsten Neuhoff, Rodney Boyd, Thilo Grau, Julian Barquin, Francisco Echavarren, Janusz Bialek, Chris Dent, Christian von Hirschhausen, Benjamin Hobbs, Friedrich Kunz, Hannes Weigt, Christian Nabe, Georgios Papaefthymiou, Christoph Weber
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DIW Discussion Papers 1162 / 2011
EU Member States increase deployment of intermittent renewable energy sources to deliver the 20% renewable target formulated in the European Renewables Directive of 2008. To incorporate these intermittent sources, a power market needs to be flexible enough to accommodate short-term forecasts and quick turn transactions. This flexibility is particularly valuable with respect to wind energy, where wind ...
2011| Frieder Borggrefe, Karsten Neuhoff
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DIW Discussion Papers 1161 / 2011
EU Member States are pursuing large scale investment in renewable generation in order to meet a 2020 target to source 20% of total energy sources by renewables. As the location for this new generation differs from the location of existing generation sources, and is often on the extremities of the electricity network, it will create new flow patterns and transmission needs. While congestion exists between ...
2011| Karsten Neuhoff, Benjamin F. Hobbs, David Newbery
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DIW Discussion Papers 1154 / 2011
Decarbonisation of energy and transport infrastructure requires significant private sector investments. The natural gas industry has demonstrated such large scale private sector infrastructure investment over the last decades, typically using long-term contractual arrangements. Are therefore institutional frameworks necessary that facilitate long-term contracting or provide regulation reassuring about ...
2011| Anne Neumann, Karsten Neuhoff
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DIW Discussion Papers 1132 / 2011
As building-integrated photovoltaic (PV) solutions can meet around one-third of electricity demand in Germany and China, both countries are interested in exploring this potential. PV technologies have demonstrated significant price reductions, but large-scale global application of PV requires further technology improvements and cost reductions along the value chain. We analyze policies in Germany and ...
2011| Thilo Grau, Molin Huo, Karsten Neuhoff