Publications of the Project: Model-based analyses for the electricity sector design to favor the integration of renewable energies in the energy transformation (MASMIE)

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Diskussionspapiere 1551 / 2016

Coordinating Cross-Country Congestion Management

We employ a detailed two-stage model to simulate the operation of the Central Eastern European electricity market and network. Implementing different cases of coordination in congestion management between national transmission system operators, numerical results show the beneficial impact of closer cooperation. Specific steps comprise the sharing of network and dispatch information, cross-border counter-trading, ...

2016| Friedrich Kunz, Alexander Zerrahn
Diskussionspapiere 1495 / 2015

A Coordinated Strategic Reserve to Safeguard the European Energy Transition

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 1492 / 2015

A Welfare Analysis of the Electricity Transmission Regulatory Regime in Germany

We analyze the current regulatory regime for electricity transmission in Germany, which combines network planning with both cost-plus and revenue-cap regulations. After reviewing international experiences on transmission investment, we first make a qualitative assessment of the overall German regime. The German TSOs have in general incentives to overinvest and inefficiently inflate costs. We further ...

2015| Claudia Kemfert, Friedrich Kunz, Juan Rosellón
Diskussionspapiere 1452 / 2015

Renewable Energy Support in Germany: Surcharge Development and the Impact of a Decentralized Capacity Mechanism

The German support for renewable energies in the electricity sector is based on the feed-in tariff for investors that grants guaranteed revenues for their renewable energy supply. Corresponding to differences of granted tariffs and respective market values, a surcharge on consumption covers differential costs. While granted tariffs are bound to fall with advances in renewable energy technologies, the ...

2015| Thure Traber, Claudia Kemfert
Diskussionspapiere 1451 / 2015

Two Price Zones for the German Electricity Market: Market Implications and Distributional Effects

We discuss the implications of two price zones, i.e. one northern and southern bidding area, on the German electricity market. In the northern zone, continuous capacity additions with low variable costs cause large regional supply surpluses in the market dispatch while conventional capacity decreases in the southern zone. As the spatial imbalance of supply and load is increasing, the current single ...

2015| Jonas Egerer, Jens Weibezahn, Hauke Hermann
Diskussionspapiere 1418 / 2014

FTR Allocations to Ease Transition to Nodal Pricing: An Application to the German Power System

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 1400 / 2014

New Cross-Border Electricity Balancing Arrangements in Europe

The European electricity system is undergoing significant changes, not only with respect to developments in generation and networks but also the arrangements for the operation of the system. These are specified in the Network Codes endorsed by regulators, network operators and the European Commission with the objective to create an \Internal Energy Market". In 2013, European network operators formulated ...

2014| Casimir Lorenz, Clemens Gerbaulet
Diskussionspapiere 1385 / 2014

Capacity Mechanisms on Central European Electricity Markets: Effects on Consumers, Producers and Technologies until 2033

The reduced attractiveness of investments in reliable power plants under conditions of liberalized markets and the transition towards renewable energies has brought a discussion on capacity policies to Europe. We use a partial equilibrium model to compare important effects of three basic policies. A strategic reserve policy and a capacity market policy with administratively set capacity targets, and ...

2014| Thure Traber
Diskussionspapiere 1301 / 2013

Integrating Intermittent Renewable Wind Generation: A Stochastic Multi-Market Electricity Model for the European Electricity Market

In northern Europe wind energy has become a dominating renewable energy source due to natural conditions and national support schemes. However, the uncertainty about wind generation affects existing network infrastructure and power production planning of generators and cannot not be fully diminished by wind forecasts. In this paper we develop a stochastic electricity market model to analyze the impact ...

2013| Jan Abrell, Friedrich Kunz
Diskussionspapiere 1298 / 2013

The Benefit of Coordinating Congestion Management in Germany

The management of congestion within the German electricity transmission network has become more important during the last years. This emerging relevance is caused by the increase of renewable generation and the partial phaseout of nuclear power plants. Both developments yield a change in the transmission flow pattern and thus the need for congestion management. Currently, four German transmission system ...

2013| Friedrich Kunz, Alexander Zerrahn