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Press Release

German construction industry booming despite decline in energy-efficient refurbishment

DIW Berlin’s construction volume calculations: construction industry remains a key pillar of the German economy—need for action in energy-efficient refurbishment and in accommodating refugees The construction industry remains a key pillar of the German economy: buildings worth a total of around 338 billion euros will have been constructed or modernized in Germany by the end of this year—2.7 ...

02.12.2015
Press Release

European Commission has missed the opportunity for innovation in CO2 intensive materials

Researchers in the Climate Strategies network found that the European Commission’s proposal for carbon leakage protection post-2020 will fail to realize a large share of innovation opportunities in materials industries like steel and cement. “This is a major missed opportunity since steel and cement alone account for 38% of industrial CO2 emissions in Europe”, said Karsten Neuhof ...

16.07.2015
Interview

"Combining Dynamic Allocation and Inclusion of Consumption into the EU ETS Would Be Beneficial": Six Questions to Karsten Neuhoff

Professor Neuhoff, the EU Emissions Trading System, or the EU ETS, has been in existence for ten years now. Has the scheme stood the test of time so far? First, the EU ETS has demonstrated that Europe can act collectively and it takes climate protection seriously. Second, it has established a long-term framework for emissions reductions. Third, the price signal has helped companies consider more ...

16.07.2015
Report

Market Incentives for System-Friendly Designs of Wind Turbines

by Nils May, Karsten Neuhoff, Frieder Borggrefe Up until now, wind turbines have been designed to generate electricity at the lowest possible total cost, independent of this electricity’s market value. With an increasing penetration of wind power in the system, the market value of electricity generated by wind turbines is declining, since wind turbines tend to produce electricity at the same ...

10.06.2015
Interview

"With the Production Value-Based Benchmark Approach, Remuneration Depends on System-Friendliness." Eight Questions to Nils May

Mr. May, you discuss here wind turbine design and its impact on the electricity system. What was your jumping-off point?A large share of wind power production takes place in high wind. Because this amount is so large, its market value decreases. It is therefore important to start building system-friendly wind turbines that produce a greater proportion of their electricity at medium and weaker wind ...

10.06.2015
Press Release

Mandatory Direct Marketing Raises the Financing Costs for Wind Power Projects

Plant operators must sell their electricity themselves – costs of forecast deviations and site-specific changes in revenue make wind power unnecessarily expensive The 2014 reform of the Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz, or EEG) mandates that operators of new large power plants market their electricity directly in order to create incentives for good wind forecasts and ...

20.05.2015
Interview

"Direct Marketing of Renewable Energy Creates New Risks for Investors" Eight Questions to Karsten Neuhoff

The interview with Prof. Karsten Neuhoff, Ph.D. is published in DIW Economic Bulletin 21/2015. It is available for download as pdf document. More issues of DIW Economic Bulletin

20.05.2015
Press Release

Refurbishing Buildings for Energy Efficiency: Could an Energy Efficiency Fund Serve as a Supplementary Financing Model?

To increase the rate at which residential building undergo refurbishments for energy efficiency, innovative financial solutions also need to be considered. For example, some property owners who are currently hesitant to implement thermal retrofit might be encouraged if the investment is funded by a third party (fund) and refinanced based on the energy costs saved with the efficiency measure. Such financing ...

06.05.2015
Interview

"Investment in Building Energy Efficiency: Climate Fund to Increase Rate of Refurbishment": Six Questions to Karsten Neuhoff

The interview with Prof. Karsten Neuhoff, Ph.D. is published in DIW Economic Bulletin 19/2015. It is available for download as pdf document. More issues of DIW Economic Bulletin Picture: Daniel Bleyenberg / pixelio.de

06.05.2015
Report

CALL FOR PAPERS:  "The 2020 Strategy Experience: Lessons for Regional Cooperation, EU Governance and Investment" - contribution to a Special Issue of the Climate Policy journal

Two ongoing political processes are set to shape the future of EU energy and climate policy. On the one hand, following up on the 2020 Strategy, the European Commission and the Member States seek to move beyond 2020 and design a 2030 Climate and Energy Framework that will address climate change and energy transformation in a manner acceptable for all the parties. On the other hand, partly as a consequence ...

09.02.2015
Press Release

2013 "Heat Monitor Germany": Heating Energy Consumption Falls While Costs Rise

The heating market plays a key role in achieving the Federal Government's energy and climate policy objectives. In particular, major savings need to be made in heating residential buildings if the majority of buildings are to be climate-neutral by 2050. In light of this, DIW Berlin and ista Deutschland GmbH have created an up-to-date data basis that is based on the heating energy bills of apartment ...

09.10.2014
Report

DIW Berlin and ista develop "Heat Monitor Germany"

The energy service provider, ista, and the German Institute for Economic Research (DIW Berlin) are jointly developing the new "Heat Monitor Germany". From autumn 2014, this monitoring programme is to create greater transparency on heating energy consumption and costs throughout Germany. As a result, measures to achieve greater energy efficiency in the building sector are to be implemented ...

11.09.2014
Report

Open letter by nine European economists on the risks of market premiums.

The currently negotiated EU State aid guidelines require that member states provide aid to renewable energy solely in the form of a premium to the market price. Such market premiums risk however the efficiency of short-term, and the effectiveness of forward contracting, markets and increase the costs of financing for renewable projects. They advantage incumbents, create barriers to new entrants, and ...

02.04.2014
Press Release

European Energy and Climate Policy Requires Ambitious Goals for 2030

In January 2014, the European Commission proposed a framework for its climate and energy policy up to 2030. It includes targets for reducing greenhouse gases and using renewable energies, but no specific targets for increasing energy efficiency. By 2030, greenhouse gas emissions are to be reduced by 40 percent over 1990 figures. Another element of the proposal is the introduction of a market stability ...

05.03.2014
Press Release

Energy and Climate Policy - Europe Is Not Alone

To date, the European Union has been at the forefront of international climate protection. But there are now a number of other countries also pursuing a proactive energy and climate policy. They are increasingly investing in renewable energies, exploiting potential energy efficiencies in industry, buildings and transportation, and contributing to the reduction of greenhouse gas emissions through carbon ...

05.02.2014
Press Release

Improved Energy Efficiency: Vital for Energy Transition and Stimulus for Economic Growth

As part of the energy transition process, the German government has set far-reaching energy efficiency targets, including doubling the annual energy-efficient refurbishment rate for existing residential buildings from one to two percent. DIW Berlin has estimated the additional energy-related investment required to meet these targets and analyzed the impact this could have on the economy. In the long ...

22.01.2014
Press Release

Strategic Reserve to Secure Electricity Market

There is an ongoing discussion about whether the German electricity market offers sufficient incentives for investment in power plants and for keeping them connected to the grid, thus ensuring sufficient security of supply. Recommendations for further securing power supply include payments, some of them comprehensive, to power plant operators - in addition to energy revenues and based on their generating ...

29.11.2013
Economic Bulletin

Energy Transition Calls for High Investment

by Jürgen Blazejczak, Jochen Diekmann, Dietmar Edler, Claudia Kemfert, Karsten Neuhoff, Wolf-Peter Schill in: DIW Economic Bulletin 09/2013.Achieving the objectives of the German governments 2010 Energy Concept and the accelerated phase-out of nuclear energy will require significant investment in restructuring energy supply. In particular, this includes investment in installations for the ...

30.09.2013
Economic Bulletin

European Electricity Generation Post-2020: Renewable Energy Not To Be Underestimated

by Christian von Hirschhausen, Claudia Kemfert, Friedrich Kunz, Roman Mendelevitch in: DIW Economic Bulletin 09/2013.In its Green Paper on a 2030 framework for climate and energy policies, the European Commission calls for a framework for the future development of environment and energy policy beyond 2020. However, much like the Energy Roadmap 2050 adopted by the Commission in December 2011, the Green ...

30.09.2013
Economic Bulletin

Germany Must Invest More in Its Future

by: S. Bach, G. Baldi, K. Bernoth, J. Blazejczak, B. Bremer, J. Diekmann, D. Edler, B. Farkas, F. Fichtner, M. Fratzscher, M. Gornig, C. Kemfert, U. Kunert, H. Link, K. Neuhoff, W.-P. Schill, C. K. Spieß in: DIW Economic Bulletin 08/2013. Shortly before the parliamentary election in 2013, Germany is riding on a wave of euphoria: hardly any other euro country has weathered the financial and debt ...

09.08.2013
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