Sustainable Finance

The workshop discussed the effects of regulations, such as feed-in management and the 6-hour rule, on the financing conditions of investments in renewable energies. First, Eberhard Holstein (Digital Energy Solutions) gave an overview of historical and current developments in electricity market design and how these can influence financing. Then Daniel Hölder from the project developer baywa.re presented how different market conditions such as feed-in management can influence financing and how such regulatory factors, together with the corresponding design of the remuneration, can lead to misdirected incentives for investments. Sebastian Reh from the project developer Enertrag explained how European regulations such as the 6-hour rule, which prohibits remuneration payments after six consecutive hours with negative prices, influence the financing conditions of investments and can influence them in particular in the future due to uncertainties in the design of the electricity market.

Publication:

Karsten Neuhoff, Nils May, Jörn C. Richstein. Renewable Energy Policy in the Age of Falling Technology Costs (PDF, 505.38 KB). DIW Discussion Paper 1746, 2018. 22 S.