Abstract
Renewable electricity is the main instrument used for decarbonizing the electricity sector. This paper aims at estimating the emission displacement effect of renewables in Germany for 2017. The results suggest that the marginal offsetting effect is positive. Wind electricity offsets more emissions than solar at the margin. Responsiveness differs between conventional technologies. Lignite plants barely reduce their emissions in response to renewable production, while coal plants are used heavily for providing flexibility. Furthermore, this analysis calculates the foregone emissions savings due to grid congestion, which are significant. By detailed analysis of electricity exports, international leakage rates and long-term emission abatement under the EU ETS are calculated.
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