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Diskussionspapiere 1621 / 2016
Common intuition holds that retail real-time pricing (RTP) of electricity demand should become more beneficial in markets with high variable renewable energy (VRE) supply mainly due to increased price volatility. Using German market data, we test this intuition by simulating long-run electricity market equilibria with carbon-tax-induced VRE investment and real-time price responsive and nonresponsive ...
2016| Christian Gambardella, Michael Pahle, Wolf-Peter Schill
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Diskussionspapiere 1540 / 2016
The emerging literature on power markets with high shares of fluctuating renewables suggests that more frequent start-up procedures of thermal power plants may become an increasing concern, both for costs and possibly also for market design. Based on official scenario assumptions, we investigate how start-ups and related costs develop in Germany, where the share of fluctuating renewables quadruples ...
2016| Wolf-Peter Schill, Michael Pahle, Christian Gambardella
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Diskussionspapiere 1507 / 2015
We analyze the interactions between different renewable support schemes and the benefits of real-time pricing (RTP) using a stylized economic model with a detailed demand-side representation calibrated to the German market. We find that there are considerable differences between a market premium on energy and capacity regarding wholesale prices, support levies and market values, which are all related ...
2015| Michael Pahle, Wolf-Peter Schill, Christian Gambardella, Oliver Tietjen
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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
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Diskussionspapiere 1457 / 2015
We develop a dispatch and investment model to study the role of power storage and other flexibility options in a greenfield setting with high shares of renewables. The model captures multiple system values of power storage related to arbitrage, dispatchable capacity, and reserves. In a baseline scenario, we find that power storage requirements remain moderate up to a renewable share of around 80%, ...
2015| Alexander Zerrahn, Wolf-Peter Schill
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Diskussionspapiere 1442 / 2015
We analyze future scenarios of integrating electric vehicles (EV) into the German power system, drawing on different assumptions on the charging mode. We use a numerical dispatch model with a unit-commitment formulation which minimizes dispatch costs over a full year. While the overall energy demand of the EV fleets is rather low in all scenarios, the impact on the system’s load duration curve differs ...
2015| Wolf-Peter Schill, Clemens Gerbaulet
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Diskussionspapiere 1402 / 2014
We analyze distinctive investment scenarios for the integration of fluctuating renewables in the German power system. Using a combined model for dispatch, transmission, and investment, three different investment options are considered, including gas-fired power plants, pumped hydro storage, and transmission lines. We find that geographically optimized power plant investments dominate in the reference ...
2014| Jonas Egerer, Wolf-Peter Schill
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Diskussionspapiere 1328 / 2013
Recent developments in electricity markets such as the increased deployment of variable renewable generation have prompted renewed interest over the role of energy storage. While storage technologies can in principle provide various benefits for the functioning of an electrical grid, many energy storage technologies are in initial stages of development and demonstration. The role of public policy is ...
2013| Eric Borden, Wolf-Peter Schill
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Diskussionspapiere 1316 / 2013
We examine the effects of future renewable expansion in Germany on residual load and renewable surplus generation for policy-relevant scenarios for 2022, 2032 and 2050. We also determine the storage capacities required for taking up renewable surpluses for varying levels of accepted curtailment. Making use of extensive sensitivity analyses, our simulations show that the expansion of variable renewables ...
2013| Wolf-Peter Schill
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Diskussionspapiere 1312 / 2013
We analyze various regulatory regimes for electricity transmission investment in the context of a transformation of the power system towards renewable energy. We study distinctive developments of the generation mix with different implications on network congestion, assuming that a shift from conventional power plants towards renewables may go along with exogenous shocks on transmission requirements, ...
2013| Jonas Egerer, Juan Rosellón, Wolf-Peter Schill