Vortrag
An Electricity Market Model with Generation Capacity Investment under Uncertainty

Andreas Schröder


Neue Wege und Herausforderungen für den Arbeitsmarkt des 21. Jahrhunderts : Jahrestagung des Vereins für Socialpolitik 2012
Göttingen, 09.09.2012 - 12.09.2012



Abstract:
This article presents an electricity dispatch model with endogenous electricity generation capacity expansion for Germany over the horizon 2035. The target is to quantify how fuel price uncertainty impacts investment incentives of thermal power plants. Results point to findings which are in line with general theory: Accounting for stochasticity increases investment levels overall and the investment portfolio tends to be more diverse.

Abstract

This article presents an electricity dispatch model with endogenous electricity generation capacity expansion for Germany over the horizon 2035. The target is to quantify how fuel price uncertainty impacts investment incentives of thermal power plants. Results point to findings which are in line with general theory: Accounting for stochasticity increases investment levels overall and the investment portfolio tends to be more diverse.

Themen: Energiewirtschaft



JEL-Classification: C63;L13;L94
Keywords: electricity market, equilibrium model, generation expansion, uncertainty, market power
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