DIW Wochenbericht 21 / 2015
Der europäische Emissionshandel soll Emissionen von Treibhausgasen vermindern und Investitionen in klimafreundliche Technologien unterstützen. Allerdings können mehrere Markthemmnisse dazu führen, dass der Emissionshandel aufgrund der großen Überschüsse an Emissionszertifikaten eine kosteneffiziente Entwicklung der Emissionsminderung nur eingeschränkt unterstützt. Die Europäische Kommission hat daher ...
2015| Karsten Neuhoff, William Acworth, Anne Schopp
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
Diskussionspapiere 1544 / 2016
A fundamental question regarding the design of electricity markets is whether adding auctions to the continuous intraday trading is improving the performance of the market. To approach this question, we assess the experience with the implementation of the 3 pm local auction for quarters in Germany at the European Power Exchange (EPEX SPOT) in December 2014 to assess the impact on trading volumes/liquidity, ...
2016| Karsten Neuhoff, Nolan Ritter, Aymen Salah-Abou-El-Enien, Philippe Vassilopoulos
Diskussionspapiere 1495 / 2015
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 ...
2015| Karsten Neuhoff, Jochen Diekmann, Friedrich Kunz, Sophia Rüster, Wolf-Peter Schill, Sebastian Schwenen
Diskussionspapiere 1494 / 2015
Abstract EU power market design has been focused on facilitating trading between countries and for this has defined interfaces for market participants and TSOs between countries. The operation of power systems and markets within countries was not the focus of these developments. This may have contributed to difficulties of defining or implementing a common perspective in particular on intraday and ...
2015| Karsten Neuhoff, Carlos Batlle, Gert Brunekreeft, Christos Vasilakos Konstantinidis, Christian Nabe, Giorgia Oggioni, Pablo Rodilla, Sebastian Schwenen, Tomasz Siewierski, Goran Strbac
Diskussionspapiere 1483 / 2015
We examine under which conditions a cap-and-trade mechanism can deliver a dynamically efficient abatement pathway and contribute to a robust investment framework. For this we develop a numerical dynamic partial-equilibrium model that includes differentiated objective functions of different market participants for holding emission allowances based on their banking strategy. If the surplus of allowances ...
2015| Anne Schopp, William Acworth, Daniel Huppmann, Karsten Neuhoff
Diskussionspapiere 1456 / 2015
We revisit key elements of European power market design with respect to both short term operation and longer-term investment and re-investment choices. For short term markets, the European policy debate focuses on the definition of common interfaces, like for example gate closure time. We argue that that this is insufficient if the market design is to accommodate for the different needs of renewable ...
2015| Karsten Neuhoff, Sophia Rüster, Sebastian Schwenen
Diskussionspapiere 1441 / 2015
The financing of infrastructures is a major topic in recent energy policy debates. Project finance, as a specialized form of debt finance, thereby has become a well-established financing tool. This paper contributes a qualitative and quantitative analysis of the determinants of the debt ratio in project finance, using data on 26 liquefied natural gas (LNG) export and import projects. We argue that ...
2015| Sophia Rüster
Diskussionspapiere 1418 / 2014
A shift from zonal pricing to smaller zones and nodal pricing improves efficiency and security of system operation. Resulting price changes do however also shift profits and surplus between and across generation and load. As individual actorscan lose, they might oppose any reform. We explore how free allocation of financial transmission rights to generation and load can be used to mitigate the distributional ...
2014| Friedrich Kunz, Karsten Neuhoff, Juan Rosellón
Diskussionspapiere 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