Den Strommarkt an die Wirklichkeit anpassen: Skizze einer neuen Marktordnung (Adapt the Electricity Market to Reality: Outline of a New Market Design)

Löschel, Andreas; Flues, Florens; Pothen, Frank; Massier, Philipp

doi:10.2139/ssrn.2325298

Cited by 5 publications

(4 citation statements)

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“…This has to be undertaken with due regard for the possible effects of distortions of support policies for renewables [19]. Consequently, it must be ensured that the goal is achieved in a more cost-efficient manner, not just an effective one [20].…”

Section: Support For Renewables Still Sensiblementioning

confidence: 99%

“…A much improved coordination between the expansion of generation and the network infrastructure will make a necessary contribution to this [10,11]. At the same time, another goal must be an efficient management of the network, in which power suppliers as a matter of principle take the needed transportation costs in the network into account when they make decisions about future locations [20,40]. The optimization of the entire system (generator plants, networks, storage) will at the same time reduce the pressure on generation, especially on the supports for renewable sources.…”

Section: Further Develop Grids and Storages As Complementary Componenmentioning

confidence: 99%

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The future of the energy transition in Germany

et al. 2014

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Although the goals of the country's energy transition (Energiewende) are widely accepted in Germany, the specific route to get there is itself a matter of great controversy. The individual measures that are part of the energy transition policy and the questions of how they interact and how they are embedded in the European context are objects of controversial scientific and public debate. Most recently, the consequences for the price of electricity have, in particular, been discussed intensely. Against this backdrop of wide-ranging criticism, the future course for promoting renewable energy will soon be set. The German Renewable Energy Sources Act (the Erneuerbare-Energien-Gesetz, EEG), which is the main instrument of energy transition policy with its feed-in tariffs, is supposed to be fundamentally revised in the course of this year. A precondition for achieving a coherent further development of the energy transition policy and for receiving the sound support of a critical public is that the long-term consequences of political decisions on a complex sociotechnical energy system be taken into account. The requirements of such a system are not satisfied by policy approaches or recommendations that target short-term effects or that are perceptions of problems extrapolated from individual sectors. On the basis of its integrated research on the energy transition, researchers from the Helmholtz Alliance Energy-Trans take a stand on current important controversial issues from the energy transformation and specify fundamental challenges to shaping a sustainable energy transition policy.Keywords: Energy transition; Sustainability; Germany; European Union; State aid; Renewable energy sources; Feed-in tariff; Federalism; Energy policy; Market designThe energy transition: a long-term project and a challenge to the system The energy transition in Germany is nothing less than the restructuring of the entire energy supply in the sectors' electricity, heat, and transportation in a highly industrialized country. This comprehensive reorganization is a task for generations, and yet the fundamental framework has to be created today. Although there continues to be a high level of approval in the general public [1][2][3][4] and among all political forces [5], essential components of the German energy transition policy are themselves currently being subject to criticism, some of it very intense. The focus of this criticism is most frequently on the renewable energy supports provided for the generation of electricity, which take the form of feed-in tariffs permitted by the Renewable Energy Sources Act (Erneuerbare-Energien- Gesetz (EEG)).a Challenges to the energy transition go, however, far beyond this. What is required is a long-term process of transforming a complex sociotechnical system [6,7] in which the goal is to set the course of change so that tomorrow's energy supply works, its consumption of resources, and its impact on the environment are limited to a sustainable level, and, in the process, efficiency and social ac...

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Section: Support For Renewables Still Sensiblementioning

confidence: 99%

Section: Further Develop Grids and Storages As Complementary Componenmentioning

confidence: 99%

The future of the energy transition in Germany

et al. 2014

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“…In the current PZC, price zones are (mostly) aligned with national borders. However, this PZC has eventually been questioned (ACER, 2014;Löschel et al, 2013), and the European Commission has eventually called for a first review of this PZC (European Commission, 2015). Yet, the results of this review process could not be used for a solid and comprehensive assessment of PZCs (Entso-E, 2018a) for various reasons (Felten et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

Assessing Improved Price Zones in Europe: Flow-Based Market Coupling in Central Western Europe in Focus

Felling¹,

Felten²,

Osinski³

2023

The Energy Journal

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Theoretical papers have identified several sources of inefficiencies of flow-based market coupling (FBMC), the implicit congestion management method used to couple the Central Western European (CWE) electricity markets. These inefficiencies ultimately lead to welfare losses. In this paper, a large-scale model framework is introduced for FBMC assessments, focusing on modeling the capacity allocation and market clearing processes. The present paper completes this framework by presenting a newly developed redispatch model. Furthermore, we provide a case study assessing improved price zone configurations (PZCs) for the CWE electricity system, motivated by the debate on the currently-existing PZC. Our results show that improved PZCs-even while maintaining the number of price zones-can significantly reduce redispatch quantities and overall system costs. Moreover, making use of the insights of (Felten et al., 2021), we explain why increasing the number of price zones may not always increase welfare when using FBMC.

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“…However, one consequence are effects on the market result and redistribution between stakeholders. While many aspects are of relevance for the decision at the level of spatial market aggregation, distributional effects on market participants are of particular importance for moving from one scheme to another (Löschel et al, 2013;ACER, 2014).…”

Section: Introductionmentioning

confidence: 99%

Two price zones for the German electricity market — Market implications and distributional effects

2016

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWe 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 bidding area results more often in technically infeasible market results requiring curative congestion management.There is an ongoing discussion about the potential effects of introducing bidding zones in Germany. Using a line sharp electricity sector model, this paper analyzes the system implications and the distributional effects of two bidding zones in the German electricity system in 2012 and 2015, respectively. Results show a modest decrease in cross-zonal re-dispatch levels, in particular in 2015. However, overall network congestion and re-dispatch levels increase in 2015 and also remain high for both bidding zones. Results are very sensitive to additional line investments illustrating the challenge to define stable price zones in a dynamic setting. With two bidding areas, prices in the model results increase in the southern zone and decrease in the northern zone. The average price deviation grows from 0.4 EUR/MWh in 2012 to 1.7 EUR/MWh in 2015 with absolute values being significantly higher in hours with price differences. Stakeholders within zones are exposed to the price deviations to a different extent. Distributional effects are surprisingly small compared to the wholesale price or different network charges.

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Den Strommarkt an die Wirklichkeit anpassen: Skizze einer neuen Marktordnung (Adapt the Electricity Market to Reality: Outline of a New Market Design)

Cited by 5 publications

References 4 publications

The future of the energy transition in Germany

The future of the energy transition in Germany

Assessing Improved Price Zones in Europe: Flow-Based Market Coupling in Central Western Europe in Focus

Two price zones for the German electricity market — Market implications and distributional effects

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