Moving non-incremental innovations from the pilot scale to full commercial scale raises questions about the need and implementation of public support. Heuristics from the literature put policy makers in a dilemma between addressing a market failure and acknowledging a government failure: incentives for private investments in large scale demonstrations are weak (the valley of death) but the track record ...
In:
Energy Policy
119 (2018), S. 154-167
| Gregory F. Nemet, Vera Zipperer, Martina Kraus
In energy systems with large shares of variable renewable energies, electricity generation is lower during unfavorable weather conditions. System-friendly wind turbines (SFTs) rectify this by producing a larger share of their electricity at low wind speeds. This paper analyzes to what extent SFTs' benefits out-weigh their additional costs and how to incentivize investments into them. Using a wind power ...
In:
Energy Economics
65 (2017), S. 343-354
| Nils May
A shift from zonal to nodal pricing improves the efficiency of system operation. However, resulting price changes also shift surplus across generation and loads at different locations. As individual actors can lose, they might oppose any reform. We explore how allocation of financial transmission rights can be used to mitigate the distributional impact. The fundamental effects with regard to reference ...
In:
Energy Economics
60 (2016), S. 176-185
| Friedrich Kunz, Karsten Neuhoff, Juan Rosellón