The German power market is shaped by several distinctive trends. These include market restructuring, climate policy measures, renewable energy integration, and electric vehicles. In this thesis, I conduct in-depth model-based analyses of specific economic questions related to the aforementioned developments. More precisely, I examine selected market failures and the need for economic regulation.
We analyze the gross welfare gains from real-time retail pricing in electricity markets where carbon taxation induces investment in variable renewable technologies. Applying a stylized numerical electricity market model, we find a U-shaped association between carbon taxation and gross welfare gains. The benefits of introducing real-time pricing can accordingly be relatively low at relatively high
The quality of electricity system modelling heavily depends on the input data used. Although a lot of data is publicly available, it is often dispersed, tedious to process and partly contains errors. We argue that a central provision of input data for modelling has the character of a public good: it reduces overall societal costs for quantitative energy research as redundant work is avoided, and
We use the model DIETER, introduced in a companion paper, to analyze the role of power storage in systems with high shares of variable renewable energy sources. The model captures multiple system values of power storage related to arbitrage, capacity, and reserve provision. We apply the model to a greenfield setting that is loosely calibrated to the German power system, but may be considered as a
The use of renewable energy sources is a major strategy to mitigate climate change. Yet Sinn (2017) argues that excessive electrical storage requirements limit the further expansion of variable wind and solar energy. We question, and alter, strong implicit assumptions of Sinn’s approach and find that storage needs are considerably lower, up to two orders of magnitude. First, we move away from
A flexible coupling of power and heat sectors can contribute to both renewable energy integration and decarbonization. We present a literature review of model-based analyses in this field, focusing on residential heating. We compare geographical and temporal research scopes and identify state-of-the-art analytical model formulations, particularly considering heat pumps and thermal storage. While
We examine the role of prosumage of solar electricity, i.e. PV self-generation combined with distributed storage, in the context of the low-carbon energy transformation. First, we devise a qualitative account of arguments in favor of and against prosumage. Second, we give an overview of prosumage in Germany. Prosumage will likely gain momentum as support payments expire for an increasing share of