The Russian war on Ukraine and Germany’s dependence on Russian gas require a rethink of German energy supplies. While there is a heated debate about an immediate energy embargo, Russia could also stop its supplies at any time. To date, Germany has purchased around 55 percent of its natural gas from Russia. DIW Berlin has developed scenarios for how the German energy system could become...
Green hydrogen can help to decarbonize parts of the transportation sector, but its power sectorinteractions are not well understood so far. It may contribute to integrating variable renewable energysources if production is sufficiently flexible in time. Using an open-source co-optimization model of thepower sector and four options for supplying hydrogen at German filling stations, we find a trade-offbetween ...
We analyze how tariff design incentivizes households to invest in residential photovoltaic and battery storage systems, and explore selected electricity sector effects. To this end, we develop an open-source electricity sector model that explicitly features prosumage agents and apply it to German 2030 scenarios. Results show that lower feed-in tariffs substantially reduce investments in residential ...
We study the state-dependent trading behavior of financial institutions in the oil futures market, using structural vector autoregressions with Markov switching in heteroskedasticity. We consider two states of the world: tranquil and turbulent. We decompose the observable time-varying price volatility during the period 2006M6–2016M5 into changes in the slopes of traders’ demand curves and into changes ...
The urgency to combat climate change and the widely distributed, increasingly competitive renewable resources in North America are strong arguments to explore scenarios for a renewable energy supply in the region. While the current power system of North America is heavily dependent on fossil fuels, namely natural gas, coal and oil, and some nuclear power plants, some current policies at the state level, ...
As COP26 drew to a close earlier this month, almost 200 nations agreed to “phase down” coal power in the coming years. How this is done, for coal and other fossil fuels, will have implications for individuals and communities that depend on these resources for their livelihoods. The first case study conducted by DIW Berlin focuses on Germany and the efforts it has undertaken to support ...
With the closure of the final six nuclear power plants, the commercial use of nuclear energy for electricity generation in Germany will come to an end in 2022. Due to the German power system's sufficient capacities—in 2020, the sector exported 20 terawatt hours (TWh), or about four percent of its electricity production—and its integration into the European electricity system, there is no reason to ...
To decarbonize the economy, many governments have set targets for the use of renewable energy sources. These are often formulated as relative shares of electricity demand or supply. Implementing respective constraints in energy models is a surprisingly delicate issue. They may cause a modeling artifact of excessive electricity storage use. We introduce this phenomenon as 'unintended storage cycling', ...
The power sector needs to ensure a rapid transition towards a low-carbon energy system to avoid the dangerous consequences of greenhouse gas emissions. Storage technologies are a promising option to provide the power system with the flexibility required when intermittent renewables are present in the electricity generation mix. This paper focuses on the role of electricity storage in energy systems ...
The transformation of the electricity sector is a central element of the transition to a decarbonized economy. Conventional generators powered by fossil fuels have to be replaced by variable renewable energy (VRE) sources in combination with electricity storage and other options for providing temporal flexibility. We discuss the market dynamics of increasing VRE penetration and its integration in the ...