The German decision to finally phase-out nuclear electricity has led to a debate on its effects on electricity prices, emission prices in the European emission trading system, as well as on international electricity trade. We investigate these effects with a Electricity market model for Europe with investments in power plants under oligopolistic conditions in Germany. We find modest price increases ...
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 counter-trading, ...
The Energy Journal
37 (2016), SI3, S. 81-100
| Friedrich Kunz, Alexander Zerrahn
e discuss the implications of two price zones (i.e., one northern and one southern bidding area) on the German electricity market. In the northern zone, continuous increases in capacity with low variable costs cause large regional supply surpluses in the market dispatch, while in the southern zone conventional capacity decreases. As the spatial imbalance of supply and load is increasing, the current ...
59 (2016), S. 365-381
| Jonas Egerer, Jens Weibezahn, Hauke Hermann
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 ...
60 (2016), S. 176-185
| Friedrich Kunz, Karsten Neuhoff, Juan Rosellón
We analyze the electricity transmission planning process in Germany (Netzentwicklungsplan), which separates transmission expansion decisions from generation dispatch. We employ an economic modeling approach to analyze two different network planning settings. In the first setting, there is no trade-off between transmission network development and generation dispatch, as is currently the case in Germany. ...
94 (2016), S. 446-452
| Claudia Kemfert, Friedrich Kunz, Juan Rosellón
In Germany and beyond, various capacity mechanisms are currently being discussed with a view to improving the security of electricity supply. One of these mechanisms is a strategic reserve that retains generation capacity for use in times of critical supply shortage. We argue that strategic reserves have specific advantages compared to other capacity mechanisms in the context of the European energy ...
41 (2016), S. 252-263
| Karsten Neuhoff, Jochen Diekmann, Friedrich Kunz, Sophia Rüster, Wolf-Peter Schill, Sebastian Schwenen
In northern Europe, wind energy has become a dominate renewable energy source, due to natural conditions and national support schemes. However, the uncertainty about wind generation affects existing network infrastructure and power production planning of generators, which cannot be fully diminished by wind forecasts. In this paper we develop a stochastic electricity market model to analyze the impact ...
Networks and Spatial Economics
15 (2015), 1, 117-147
| Jan Abrell, Friedrich Kunz