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  1. Power system transformation toward renewables
    an evaluation of regulatory approaches for network expansion
    Erschienen: [2015]
    Verlag:  ZBW, [Kiel

    We analyze various regulatory regimes for electricity transmission investment in the context of a power system transformation toward renewable energy. Distinctive developments of the generation mix are studied, assuming that a shift toward renewables... mehr

    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    We analyze various regulatory regimes for electricity transmission investment in the context of a power system transformation toward renewable energy. Distinctive developments of the generation mix are studied, assuming that a shift toward renewables may have temporary or permanent impacts on network congestion. We specifically analyze the relative performance of a combined merchant-regulatory price-cap mechanism, a cost-based rule, and a non-regulated approach in dynamic generation settings. We find that incentive regulation may perform better than cost-based regulation but only when appropriate weights are used. While quasi-ideal weights generally restore the beneficial properties that incentive regulatory mechanisms are well-known for, pure Laspeyres weights may either lead to over-investment or delayed investments as compared to the welfare-optimum benchmark. Laspeyres-Paasche weights, in turn, seem appropriate under permanently or temporarily increased network congestion. Thus, our analysis provides motivation for further research in order to characterize optimal regulation for transmission expansion in the context of renewable integration.

     

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    Sprache: Englisch
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    Weitere Identifier:
    hdl: 10419/181036
    Auflage/Ausgabe: [aktualisierte Version]
    Umfang: 1 Online-Ressource (circa 30 Seiten), Illustrationen
  2. Regulated expansion of electricity transmission networks
    the effects of fluctuating demand and wind generation
    Erschienen: 2011
    Verlag:  DIW, Berlin

    We study the performance of different regulatory approaches for the expansion of electricity transmission networks in the light of realistic demand patterns and fluctuating wind power. In particular, we are interested in the relative performance of a... mehr

    Leibniz-Institut für Wirtschaftsforschung Halle, Bibliothek
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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    We study the performance of different regulatory approaches for the expansion of electricity transmission networks in the light of realistic demand patterns and fluctuating wind power. In particular, we are interested in the relative performance of a combined merchant-regulatory mechanism compared to a cost-based and a merchant-like approach. In contrast to earlier research, we explicitly include both an hourly time resolution and fluctuating wind power, which allows representing demand in a very realistic way. This substantially increases the real-world applicability of results compared to previous analyses, which were based on simplifying assumptions. We show that a combined merchant-regulatory regulation, which draws on a cap over the two-part tariff of the Transco, leads to welfare outcomes far superior to the modeled alternatives. This result proves to be robust over a range of different cases and sensitivity analyses. We also find that the intertemporal rebalancing of the two-part tariff carried out by the Transco so as to expand the network is such that the fixed tariff part turns out to be relatively large compared to extension costs. -- Electricity ; Regulation ; Transmission Expansion ; Wind Power

     

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    hdl: 10419/52535
    Schriftenreihe: Discussion papers / German Institute for Economic Research ; 1109
    Schlagworte: Elektrizitätsversorgung; Investition; Regulierung; Nachfrage; Volatilität; Windenergie; Wohlfahrtsanalyse; Theorie
    Umfang: Online-Ressource (PDF-Datei: 29 S., 456 KB), graph. Darst.
  3. European electricity grid infrastructure expansion in a 2050 context
    Erschienen: 2013
    Verlag:  DIW, Berlin

    The European climate targets until 2050 require an adaptation of the generation portfolio in terms of renewable and fossil based generation. Assumptions on the timeline of the targets and the availability and costs of generation technologies are used... mehr

    Leibniz-Institut für Wirtschaftsforschung Halle, Bibliothek
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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    The European climate targets until 2050 require an adaptation of the generation portfolio in terms of renewable and fossil based generation. Assumptions on the timeline of the targets and the availability and costs of generation technologies are used in energy system models to optimize the cost minimal system transformation. The results include investments in generation technologies and their national allocation. Yet, the models are limited to the national aggregation and lack the spatial resolution required to represent individual network investments and related costs. In this paper, we analyze the impact the results of an energy system model have on demand for network expansion in the European power grid in a line-sharp representation. A cost minimizing mixed-integer problem (MIP) model calculates where in the European electricity grid expansion needs to take place for different time steps (2020/30/40/50) in order to obtain minimal total costs for power plant dispatch and grid expansion. Scenarios based on the generation infrastructure options from the PRIMES EU-wide energy model scenarios invoke different expansion needs and are compared. The model allows investments in the AC network and an overlay DC grid. Resulting investment costs are compared to the numbers of the European Energy Roadmap 2050. -- Electricity ; European Transmission Network ; Investment Model

     

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    hdl: 10419/74486
    Schriftenreihe: Discussion papers / Deutsches Institut für Wirtschaftsforschung ; 1299
    Umfang: Online-Ressource (19 S.), graph. Darst., Kt.
  4. Power system transformation towards renewables
    an evaluation of regulatory approaches for network expansion
    Erschienen: 2013
    Verlag:  DIW, Berlin

    We analyze various regulatory regimes for electricity transmission investment in the context of a transformation of the power system towards renewable energy. We study distinctive developments of the generation mix with different implications on... mehr

    Leibniz-Institut für Wirtschaftsforschung Halle, Bibliothek
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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    We analyze various regulatory regimes for electricity transmission investment in the context of a transformation of the power system towards renewable energy. We study distinctive developments of the generation mix with different implications on network congestion, assuming that a shift from conventional power plants towards renewables may go along with exogenous shocks on transmission requirements, which may be either of temporary or permanent nature. We specifically analyze the relative performance of a combined merchant-regulatory price-cap mechanism, a cost-based rule, and a non-regulated approach in dynamic generation settings. Through application in a stylized two-node network, we find that incentive regulation may perform satisfactorily only when appropriate weights are used. While quasi-ideal weights generally restore the beneficial properties that incentive regulatory mechanisms are well-known for in static settings, pure Laspeyres weights may either lead to overinvestment (stranded investments) or delayed investments as compared to the welfare optimum benchmark. Stranded investments could then be avoided through proper handling of weights. Model results indicate that using average Laspeyres-Paasche weights appears to be an appropriate strategy in the context of permanently or temporarily increasing network congestion. Our analysis motivates further research aimed to characterize optimal regulation for transmission expansion in the context of renewable integration.

     

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    hdl: 10419/78049
    Schriftenreihe: Discussion papers / Deutsches Institut für Wirtschaftsforschung ; 1312
    Umfang: Online-Ressource (27 S.), graph. Darst.
  5. Power system transformation toward renewables
    investment scenarios for Germany
    Erschienen: 2014
    Verlag:  DIW, Berlin

    We analyze distinctive investment scenarios for the integration of fluctuating renewables in the German power system. Using a combined model for dispatch, transmission, and investment, three different investment options are considered, including... mehr

    Leibniz-Institut für Wirtschaftsforschung Halle, Bibliothek
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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    We analyze distinctive investment scenarios for the integration of fluctuating renewables in the German power system. Using a combined model for dispatch, transmission, and investment, three different investment options are considered, including gas-fired power plants, pumped hydro storage, and transmission lines. We find that geographically optimized power plant investments dominate in the reference scenarios for 2024 and 2034. In scenarios with decreasedrenewable curtailment, storage and transmission requirements significantly increase. In an alternative scenario with larger investments into storage, system costs are only slightly higher compared to the reference; thus, considering potential system values of flexible pumped hydro storage facilities that are not included in the optimization, a moderate expansion of storage capacities appears to be a no-regret strategy from a system perspective. Additional transmission and storage investments may not only foster renewable integration, but also increase the utilization of emission-intensive plants. A comparison of results for 2024 and 2034 indicates that this is only a temporary effect. In the long run, infrastructure investments gain importance in the context of an ongoing energy transition from coal to renewables. Because of long lead times, planning and administrative procedures for large-scale projects should start early.

     

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    Weitere Identifier:
    hdl: 10419/103366
    0325314
    Schriftenreihe: Discussion papers / Deutsches Institut für Wirtschaftsforschung ; 1402
    Umfang: Online-Ressource (30 S.), graph. Darst., Kt.
  6. A lower carbon strategy for the electricity sector of Kazakhstan to 2030/50
    scenarios for generation and network development ; [technical report]
    Erschienen: 2014
    Verlag:  DIW, Berlin

    Leibniz-Institut für Wirtschaftsforschung Halle, Bibliothek
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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    Sprache: Englisch
    Medientyp: Ebook
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    ISBN: 3938762764; 9783938762769
    Weitere Identifier:
    hdl: 10419/103976
    Schriftenreihe: DIW Berlin: Politikberatung kompakt ; 85
    Schlagworte: Emissionshandel; Szenariotechnik; Elektrizitätswirtschaft; Kasachstan
    Umfang: Online-Ressource (V, 54 S.), graph. Darst., Kt.
  7. Regulated expansion of electricity transmission networks
    the effects of fluctuating demand and wind generation
    Erschienen: 2011
    Verlag:  CIDE, México, DF

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    Sprache: Englisch
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    Format: Online
    Schriftenreihe: Array ; 523
    Umfang: Online-Ressource (41 S.), graph. Darst.
    Bemerkung(en):

    Zsfassung in span. Sprache

  8. Development scenarios for the North and Baltic Sea grid
    a welfare economic analysis
    Erschienen: 2012
    Verlag:  DIW, Berlin

    The North and Baltic Sea Grid is one of the largest pan-European infrastructure projects raising high hopes regarding the potential of harnessing large amounts of renewable electricity, but also concerns about the implementation in largely nationally... mehr

    Staats- und Universitätsbibliothek Bremen
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    Leibniz-Institut für Wirtschaftsforschung Halle, Bibliothek
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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    The North and Baltic Sea Grid is one of the largest pan-European infrastructure projects raising high hopes regarding the potential of harnessing large amounts of renewable electricity, but also concerns about the implementation in largely nationally dominated regulatory regimes. The paper develops three idealtype development scenarios and quantifies the technical-economic effects: i) the Status quo in which engagement in the North and Baltic Sea is largely nationally driven; ii) a Trade scenario dominated by bilateral contracts and point-to-point connections; and iii) a Meshed scenario of fully interconnected cables both in the North Sea and the Baltic Sea, a truly pan-European infrastructure. We find that in terms of overall welfare, the meshed solution is superior; however, from a distributional perspective there are losers of such a scheme, e.g. the incumbent electricity generators in France, Germany, and Poland, and the consumers in low-price countries, e.g. Norway and Sweden. Merchant transmission financing, based on congestion rents only, does not seem to be a sustainable option to provide sufficient network capacities, and much of the investment will have to be regulated to come about. We also find strong interdependencies between offshore grid expansion and the subsequent onshore network. -- Electricity ; Offshore Transmission ; Rent Allocation

     

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    Weitere Identifier:
    hdl: 10419/68452
    Schriftenreihe: Discussion papers / Deutsches Institut für Wirtschaftsforschung ; 1261
    Schlagworte: Windenergie; Erneuerbare Energie; Stromnetz; Elektrizitätswirtschaft; Ökonomische Rente; Wohlfahrtsanalyse; Nordsee; Ostsee; Europa
    Umfang: Online-Ressource, graph. Darst., Kt.
  9. Open source Electricity Model for Germany (ELMOD-DE)
    Autor*in: Egerer, Jonas
    Erschienen: 2016
    Verlag:  DIW Berlin, Deutsches Institut für Wirtschaftsforschung, Berlin

    This data documentation introduces to nodal dispatch models and the literature of the ELMOD model framework, which focuses on bottom-up electricity sector models with detailed spatial representation of the transmission system. The paper provides the... mehr

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    This data documentation introduces to nodal dispatch models and the literature of the ELMOD model framework, which focuses on bottom-up electricity sector models with detailed spatial representation of the transmission system. The paper provides the technical description of ELMOD-DE, a nodal DC load flow model for the German electricity sector. In alignment with this paper, the described model, including its GAMS code and dataset, is made publicly available as open source model on the website of the DIW Berlin. The dataset uses publicly accessible data sources and includes hourly system data for the German electricity sector of the year 2012. The data documentation also illustrates the variety of insights into the German electricity system, ELMOD-DE provides on nodal level, with examples for hourly nodal system states and aggregated results.

     

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    Weitere Identifier:
    hdl: 10419/129782
    Schriftenreihe: Data documentation / DIW Berlin ; 83
    Umfang: 1 Online-Ressource (circa 47 Seiten), Illustrationen
  10. Testing regulatory regimes for power transmission expansion with fluctuating demand and wind generation
    Erschienen: [2015]
    Verlag:  Springer, [Berlin]

    Adequate extension of electricity transmission networks is required for integrating fluctuating renewable energy sources, such as wind power, into electricity systems. We study the performance of different regulatory approaches for network expansion... mehr

    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    DSM
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    Adequate extension of electricity transmission networks is required for integrating fluctuating renewable energy sources, such as wind power, into electricity systems. We study the performance of different regulatory approaches for network expansion in the context of realistic demand patterns and fluctuating wind power. In particular, we are interested in the relative performance of a combined merchant-regulatory price-cap mechanism compared to a cost-based and a non-regulated approach. We include both an hourly time resolution and fluctuating wind power. This substantially increases the real-world applicability of results compared to previous analyses. We show that a combined merchant-regulatory regulation, which draws upon a cap over the two-part tariff of the transmission company, leads to welfare outcomes superior to the other modeled alternatives. This result proves to be robust over a range of different cases, including such with large amounts of fluctuating wind power. We also evaluate the outcomes of our detailed model using the extension plans resulting from a simplified model based on average levels of load and wind power. We show that this distorts the relative performance of the different regulatory approaches.

     

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    hdl: 10419/126681
    Umfang: 1 Online-Ressource (circa 34 Seiten), Illustrationen
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    Sonderausgabe aus: [Journal of regulatory economics ; 47,1]

  11. Power system transformation toward renewables
    an evaluation of regulatory approaches for network expansion
    Erschienen: 2013
    Verlag:  International Association for Energy Economics], [Cleveland

    We analyze various regulatory regimes for electricity transmission investment in the context of a power system transformation toward renewable energy. Distinctive developments of the generation mix are studied, assuming that a shift toward renewables... mehr

    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    DSM
    keine Fernleihe

     

    We analyze various regulatory regimes for electricity transmission investment in the context of a power system transformation toward renewable energy. Distinctive developments of the generation mix are studied, assuming that a shift toward renewables may have temporary or permanent impacts on network congestion. We specifically analyze the relative performance of a combined merchant-regulatory price-cap mechanism, a cost-based rule, and a non-regulated approach in dynamic generation settings. We find that incentive regulation may perform better than cost-based regulation but only when appropriate weights are used. While quasi-ideal weights generally restore the beneficial properties that incentive regulatory mechanisms are well-known for, pure Laspeyres weights may either lead to over-investment or delayed investments as compared to the welfare-optimum benchmark. Laspeyres-Paasche weights, in turn, seem appropriate under permanently or temporarily increased network congestion. Thus, our analysis provides motivation for further research in order to characterize optimal regulation for transmission expansion in the context of renewable integration.

     

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    Weitere Identifier:
    hdl: 10419/121248
    Übergeordneter Titel: Sonderdruck aus: Energy journal ; 36,4;
    Auflage/Ausgabe: Preprint
    Umfang: Online-Ressource (27 S.), graph. Darst.
  12. A spatial electricity market model for the power system of Kazakhstan
    Erschienen: 2017
    Verlag:  DIW Berlin, German Institute for Economic Research, Berlin

    Kazakhstan envisions a transition towards a green economy in the next decades which poses an immense challenge as the country heavily depends on (hydro-)carbon resources, for both its economy and its energy system. In this context, there is a lack of... mehr

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    Kazakhstan envisions a transition towards a green economy in the next decades which poses an immense challenge as the country heavily depends on (hydro-)carbon resources, for both its economy and its energy system. In this context, there is a lack of comprehensive and transparent planning tools to assess possible sustainable development pathways in regard to their technical, economic, and environmental implications. We present such a tool with a comprehensive techno-economic model of the Kazakh electricity system which determines the hourly least-cost generation dispatch based on publicly available data on the technical and economic characteristics of power plants and the transmission infrastructure. This modeling framework accounts for the particularities of the Kazakh electricity system: i) it has a detailed representation of combined heat and power, and ii) line losses are endogenously determined using a linear approximation. Model results are examined for a typical winter week (with annual peak load) and a typical summer week (with the hour of lowest annual load) presenting regionally and temporally disaggregated results for power generation, line utilization, and nodal prices. In an application to market design, the paper compares nodal and zonal pricing as two possible pricing schemes in Kazakhstan for the envisioned strengthening of the day-ahead market. In general, the model can be readily used to analyze the least-cost dispatch of the current Kazakh electricity system and can be easily expanded to assess the sector's development. Among others, possible applications include investment in transmission lines and in the aging power plant fleet, scenarios and policy assessment for emission reduction, and questions of market liberalization and market design.

     

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    hdl: 10419/157352
    Schriftenreihe: Discussion papers / Deutsches Institut für Wirtschaftsforschung ; 1659
    Umfang: 1 Online-Ressource (circa 27 Seiten), Illustrationen
  13. Two price zones for the German electricity market
    market implications and distributional effects
    Erschienen: 2015
    Verlag:  DIW, Berlin

    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... mehr

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    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 bidding area results more often in technically infeasible market results requiring curative congestion management. Additional bidding zones would enable better market integration of scarce transmission capacities in a system exposed to structural regional imbalances. 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 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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    hdl: 10419/107425
    Schriftenreihe: Discussion papers / Deutsches Institut für Wirtschaftsforschung ; 1451
    Umfang: Online-Ressource (20 S.), graph. Darst., Kt.
  14. National-strategic investment in European power transmission capacity
    Erschienen: 2014
    Verlag:  DIW, Berlin

    The transformation of the European energy system requires substantial investment in transmission capacity to facilitate cross-border trade and to efficiently integrate renewable energy sources. However, network planning in the EU is still mainly a... mehr

    Leibniz-Institut für Wirtschaftsforschung Halle, Bibliothek
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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    The transformation of the European energy system requires substantial investment in transmission capacity to facilitate cross-border trade and to efficiently integrate renewable energy sources. However, network planning in the EU is still mainly a national prerogative. In contrast to other studies aiming to identify the pan-European (continental) welfare-optimal transmission expansion, we investigate the impact of national regulators deciding on network investment strategically, with the aim of maximizing consumer surplus and generator profits in their jurisdiction. This reflects the inadequacy of current mechanisms to compensate for welfare re-allocations across national boundaries arising from network upgrades. We propose a three-stage equilibrium model to describe the Nash game between zonal planners (i.e., national governments, regulators, or system operators), each taking into account the impact of network expansion on the electricity spot market and the resulting welfare effects on the constituents within her jurisdiction. Using a four-node sample network, we identify several Nash equilibria of the game between the zonal planners, and illustrate the failure to reach the first-best welfare expansion in the absence of an effective compensation mechanism.

     

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    Weitere Identifier:
    hdl: 10419/97143
    Schriftenreihe: Discussion papers / Deutsches Institut für Wirtschaftsforschung ; 1379
    Umfang: Online-Ressource (23 S.), graph. Darst.