Electricity In Germany Research Articles

Electricity cost and CO2 savings potential for chlor-alkali electrolysis plants: Benefits of electricity price dependent demand response

Chlor-alkali electrolysis plays a significant role in Germany's electricity demand, with a share of >2%. It offers a promising avenue for leveraging demand response strategies. In times of escalating electricity prices, load shifting can help to maintain economic competitiveness of domestic industries. This study aims to assess the potential for electricity cost savings and related CO2 emission reductions through optimal load shifting practices for chlor-alkali electrolysis, considering both current and projected future electricity prices. The research employs the mixed-integer energy system modeling framework IRPopt to model and optimize a chlorine value chain under various scenarios. A sensitivity analysis is conducted to identify the primary factors driving electricity cost savings. The findings reveal that, based on the 2019 electricity price distribution (before pandemic and energy crisis), load shifting can yield electricity cost savings of 5.8% and CO2 emission reductions of 2.7%. As the share of variable renewable energy sources increases along with other driving factors, the electricity price spread is projected to rise from 28% in 2019 to an average of 87% in 2040 scenarios. Consequently, electricity cost savings rise up to 22% and CO2 emission reductions up to 10%. The primary drivers behind electricity cost savings include electricity price spreads and the utilization and operating range of the electrolyzer. In addition to the business-level advantages, the resulting decrease in residual load and lower CO2 emissions contribute to the integration of variable renewable energy sources and the achievement of decarbonization targets at the economic level.

A comprehensive study on the consequences of substituting energy crops by alternative substrates for biogas production in Germany

Using agricultural waste biomass and by-products (alternative substrates) for biogas production is a promising strategy to improve energy self-sufficiency in the European Union, and the sustainability of biogas production. A comprehensive study with three different types of alternative substrates was conducted on lab-scale. The methane potential of the untreated alternative substrates was 44.1–66.5% of maize silage. Promising substrate pre-treatment methods were identified, enhancing the methane potential by up to 46% and the degradation kinetics by up to 106%, respectively. Simulating the methane production in continuously operated digesters by parameters obtained in the batch tests was possible. High accuracy of the parameters was essential to obtain reliable simulation results. Applying the simulation approach to a case study revealed that the methane production is reduced by 36%–73% if the alternative substrates substitute maize silage. To analyze the economic feasibility, this was contrasted with prices for maize silage and electricity in Germany in 2022. Only maize straw showed the potential to replace maize silage during those hours that featured the 25% lowest electricity prices.

The German Environmental Tax Reform: a difference-in-differences analysis of its impacts in European comparison

AbstractIn 1998, the red-green Schröder government implemented the Environmental Tax Reform (ETR), raising taxes on petrol, diesel, natural gas and heating oil and introducing a new duty on electricity in Germany. At the same time, it cut non-wage labour costs by reducing public pension contributions. The goal was to achieve Germany’s Kyoto Protocol emissions targets and to reduce a level of unemployment unprecedented since World War II while avoiding the burden on the public budget through revenue recycling. Employing microdata from household budget surveys of 1998 and 2003, this article analyses whether increased duties on motor fuels and electricity lead to a substantial reduction in households’ consumption of these goods. Considering the ETR as a natural experiment, it uses the difference-in-differences approach in a European context with Germany as the treatment group and Italy, Spain and the UK as the control group. Ordinary least square regressions reveal that motor fuel demand is price inelastic, while electricity consumption increased despite the substantial rise in prices. Quartile regressions show that the effect of the motor fuel tax is slightly higher at the bottom than at the upper tail of the distribution supporting the notion that low-level consumers are more likely to find alternative substitutes.

National and Regional Economic Impacts of changes in Germany's electricity mix: A dynamic analysis through 2050

To meet the net zero emission target by 2045, Germany has planned to phase out coal from electricity production by 2038 and increase electricity production from alternative sources through technological advancements. We examine the impacts of related measures on CO2 emissions, electricity security, and economic output at national and regional levels using a regionalized dynamic computable general equilibrium model. Our results reveal that phasing out coal from the electricity mix reduces electricity generation and increases imports but only slightly reduces electricity supply and economic output. The reduction in CO2 emissions in Germany is significant but insufficient to reach the 2045 net zero emission target. Additional technology advancements in alternative electricity productions accompanying the phase-out may have limited effects on the supply of electricity, economic outputs, and CO2 emissions.

Importance of renewable resource variability for electricity mix transformation: A case study from Germany based on electricity market data

The success of the German electricity mix transformation depends on the variable renewable energies solar photovoltaics and wind. Their extensive exploitation until 2030 and beyond is a cornerstone on the road to climate neutrality, which Germany aims for in 2045. We use actual electricity generation and consumption data from 2015 to 2021 to analyze the development and potential of renewable energy shares in the German electricity mix and discuss future challenges for implementing the transformation until 2030. Current electricity consumption mostly exceeded renewable electricity generation, leading to consumption-supply mismatch and large residual loads. Renewable electricity generation met the net electricity consumption in 0.16% of all hours analyzed. No day renewables met net electricity consumption; substantial residual loads always occurred. The natural variability of the territorial availability of solar and wind was identified as the main reason for the high residual load shares. Results of a high-resolution wavelet analysis illustrate in detail the extend of the temporal, territorial variability of wind and solar along the studied timeline. Together with the annual gross electricity consumption values discussed for 2030 of 650–800 TWh these findings were used for projecting the future consumption-supply mismatch. The most optimistic scenarios show that only strict compliance with the targeted expansion and moderate increase in electricity consumption enables the achievement of set energy goals. Missing expansion targets and increasing electricity consumption challenge the 2030 renewable generation targets in 47% of the most optimistic scenarios. It is concluded that the natural variability of solar and wind will continue to be a major challenge for meeting Germany's electricity consumption in the near future.

The impact of weather changes on the supply and demand of electric power and wholesale prices of electricity in Germany

The impact of weather changes on the supply and demand of electric power and wholesale prices of electricity in Germany

Do green electricity tariffs increase household electricity consumption?

ABSTRACT In this paper we investigate whether households change electricity consumption after they switch to a green electricity tariff. Using metered data of household electricity consumption from a large provider of green electricity in Germany, our quasi-experimental analysis finds that household switching to a green tariff leads to a non-monetary renewable rebound effect of around 7.7%. Further, our findings imply that this renewable rebound effect is persistent over at least four years. These findings are observationally consistent with moral licencing effects which induce households to permanently change their habitual behaviours and/or to acquire additional electricity-consuming technologies. Thus, failure to account for a renewable rebound in policy evaluation may lead to systematically underestimate the costs of achieving energy and climate targets.

TECHNO-ECONOMIC ANALYSIS OF EXCESS WIND ENERGY UTILITZATION IN THE ENERGY SUPPLY OF RESIDENTIAL QUARTERS

In this study we have examined the potential of excess wind use in Germany. Excess wind constitutes roughly 40% of unused capacities of installed wind power in Germany. Using LP modelling and representative annual load profiles on an hourly resolution, we investigate the impact of the price level for wind peak power supply of residential quarters with heat, cold and electricity in Germany in combination with different power ratios of wind supply and demand. As we show, an application of wind peak tariff is technically and economically feasible and allows using green leftover energy without going in competition with e.g., green fuels or green H2 production.

On the relevance of values, norms, and economic preferences for electricity consumption

Based on data of more than 3700 citizens in Germany, this paper empirically examines the relevance of several groups of explanatory factors for electricity consumption. Besides controlling for individual housing and dwelling characteristics as well as socio-demographics, we analyze the effect of environmentally-related values and norms. Since behavioral economics reveals the importance of economic preferences for many individual activities, we additionally consider time and risk preferences, altruism, trust, and reciprocity in our econometric analysis. With respect to the latter factors, only patience has a significantly negative effect on electricity consumption. Instead, our estimation results suggest a high relevance of several individual housing and dwelling characteristics and socio-demographics. The most interesting result is probably that neither environmentally-related values such as ecological policy identification and environmental awareness nor environmentally-related personal and social norms have a significant effect. In contrast to the USA and to the demand for green electricity in Germany, these estimation results suggest that citizens with strong environmentally-related values and norms in Germany do not consider low electricity consumption as an important direction for environmental and climate protection.

Carbon pricing in Germany's road transport and housing sector: Options for reimbursing carbon revenues

In 2021, Germany launched a national emissions trading system (ETS) in its road transport and housing sectors that increases the cost burden of consumers of fossil fuels, the major source of carbon dioxide (CO2) emissions. A promising approach to secure public acceptance for such a carbon pricing would be to entirely reallocate the resulting “carbon” revenues to consumers. This article discusses three alternatives that were discussed in the political arena prior to the introduction of the national carbon pricing: a) a per-capita reallocation to private households, b) the reduction of electricity prices by, e.g., decreasing the electricity tax, as well as c) targeted financial aid for vulnerable consumers, such as increasing housing benefits. To estimate both the revenues originating from carbon pricing and the resulting emission savings, we employ a partial equilibrium approach that is based on price elasticity estimates on individual fossil fuel consumption from the empirical literature. Most effective with respect to alleviating the burden of poor households would be increasing housing benefits. While this measure would not require large monetary resources, we argue that the remaining revenues should be preferably employed to reduce Germany's electricity tax, which becomes more and more obsolete given the steadily increasing amount of electricity generated by renewable energy technologies.

Use of carbon dioxide as raw material to close the carbon cycle for the German chemical and polymer industries

This article explores how far the use of CO2 as raw material could enable the German chemical and polymer industries to contribute to a circular economy. Material Flow Analysis was conducted for all carbon flows for material use in Germany, comprising chemical production, polymer production, domestic use and waste management. For scenario modelling, Carbon Capture and Utilization technologies were included, and key parameters determining carbon flows were altered to show potential corridors for the future development. The results show that current carbon flows are dominated by fossil sources and are highly linear, with a secondary input rate of only 6%. Additionally, 12% (2 Mt/a) of the primary carbon input is lost due to dissipation. Currently available Carbon Capture and Utilization technologies would allow reaching a secondary input rate of 65% for the chemical industry. However, to achieve this rate between 80% (processes of direct synthesis) and 103% (methanol-based processes) of the total net supply for renewable electricity in Germany would be required in 2030 and between 41% and 50% in 2050. In contrast, the unavoidable substance related CO2-point sources in Germany could probably fulfill the carbon requirement for material use of the chemical industry in 2050. The authors conclude that the utilization of CO2 as a carbon source is necessary to close the carbon cycle where material or chemical recycling is technically not feasible or reasonable. The very high demand for renewable electricity indicates that the required production facilities for CO2-based chemicals will probably not be completely based in Germany.

What does it matter for trust of green consumers? An application to German electricity market

Abstract The concerns about environment and the social dynamics of markets are favouring the consumption of green products. As the main associations to green products are based on intangible factors, trust in the supplier firms becomes central. However, trust is not an easy construct and its measurement is particularly complex in such a context as green consumption. This paper contributes to literature developing a model to measure trust of green consumers. After a theoretical review about the conceptualization and measurement of trust and the application of an exploratory factorial analysis in two samples of consumers regarding green electricity in Germany, the results identify four dimensions influencing trust: competence, responsibility, openness and authenticity. It opens opportunities for both academics and managers about how to measure trust and what managerial practices can reinforce their environmental-friendly products or services offerings.

Short-term electricity trading for system balancing: An empirical analysis of the role of intraday trading in balancing Germany's electricity system

Previous studies have noted that, unexpectedly, Germany's dramatic expansion of wind and solar energy coincided with a reduction of short-term balancing reserves. This observation has been dubbed the “German Balancing Paradox”. This paper provides further and updated evidence: since 2011, wind and solar energy have nearly doubled while both reserve requirements and reserve use have declined by 50%. The paper quantitatively explores one reason for reduced balancing needs: increased and improved short-term wholesale electricity trading on the intraday market. Trading is now commonly done around the clock and based on quarter-hour, rather than full-hour, contracts. The shift to quarter-hourly products alone explains a decrease in balancing energy by 17%. There is also strong evidence that market parties respond efficiently to imbalance charges, suggesting that incentive-based approaches to electricity balancing work.

Is a 100% Renewable Energy Economy Possible in the Light of Wind Silence Occurrences?

Abstract This article is focused on analysing the present state of renewable electricity production and consumption coverage in Germany, concentrating on the intermittence of wind and solar energy production and considering the significance of the wind silence phenomenon. The development and promotion of renewable energy is a major goal set out by politicians of which one example is the German plan “Energiewende”. The author examines wind and solar energy complementarity and attempts assessing the possibility of basing Germanys’ electricity production on renewable energy sources, without significant advancements in technology and changes in consumer behaviour. Using the analysis based on hourly data of consumption and production by source of electricity in Germany in 2016, the research addresses the issues of renewable energy source effectiveness, intermittence and points to the critical matter of periodical unavailability of wind and solar energy.

A review of the German energy transition: taking stock, looking ahead, and drawing conclusions for the Middle East and North Africa

This paper reviews the German energy policy framework, commonly known as ‘Energiewende’, which aims to transform and decarbonise the German energy system. We look at the achievements made over the last 8 years and discuss the implications, e.g., in terms of costs and rents, for consumers and producers of electricity in Germany and beyond. German policy makers have been successful in deploying new technologies, but have so far failed to achieve CO2 emission reductions. Producer rents were significantly cut, while the subsidisation of renewables has led to a sharp increase in end-user prices. The challenge now is to start moving the energy transition beyond power generation and achieve emission savings in the transport, industry, and buildings’ sectors.

Equity and the willingness to pay for green electricity in Germany

The production of electricity on the basis of renewable energy technologies is often discriminatively financed: the German energy-intensive sector, for instance, benefits from a far-reaching exemption rule, while all other electricity consumers are forced to bear a higher burden in the form of a higher surcharge on the net price of electricity. Here, we demonstrate that reducing this inequity in cost burden substantially raises household willingness to pay for green electricity. In a stated-choice experiment among about 11,000 households, participants who were informed about the energy industry exemption were less likely to accept an increase in the fixed surcharge per kilowatt hour than those who were not informed. However, participants who were informed about the industry exemption but then told that it would be abolished had significantly higher acceptance rates. This suggests that reducing inequity in the distribution of the cost burden increases the acceptance of bearing these costs. This outcome may have far-reaching implications for policymaking that extend to other domains where exemptions exist, such as carbon tax schemes. The cost of green electricity is unfairly distributed, with consumers paying more while industry actors are subsidized. Here, the authors find that reducing the inequity in cost burden by abolishing exemptions increases consumer acceptance of these costs.

Wind electricity subsidies — A windfall for landowners? Evidence from a feed-in tariff in Germany

Subsidies for renewable energy sources are increasing around the globe and amounted to more than 100 billion euro in 2013. This study aims to answer whether the subsidies only ensure that green electricity plants are profitable or whether other market participant – as, for example, landowners – benefit from the subsidy in the form of windfall gains as well. To identify the causal effect of the subsidies, we investigate the impact of the introduction of a price guarantee in the form of a feed-in tariff for wind electricity in Germany on land prices. We employ two different approaches. Both approaches exploit quasi-experimental variation in wind strength across 260 non-urban counties in combination with the introduction of the subsidies. Based on a difference-in-differences design, we find that land prices increased by roughly 1100 euro in high-wind areas after the introduction of the subsidy. Further, using an instrumental variable estimator we document that around 18% of expected wind turbine profits are capitalized into land prices. Finally, we show that wind turbine subsidies account for 4% of overall agricultural income in 2007.

Auction Schemes, Bidding Strategies and the Cost-Optimal Level of Promoting Renewable Electricity in Germany

ABSTRACT Germany is among the leading countries regarding the promotion of renewable energy towards a sustainable energy system transition. In this paper, we investigate the German pilot auction scheme for solar photovoltaics introduced in the Renewable Energies Act 2014 (EEG 2014) that serves as a pilot for the auctionbased promotion of the three major large-scale renewable electricity generation technologies (wind, solar, biomass) as of 2017. A strategic bidding model is used to determine the optimal bidding strategy and to determine the resulting project value. We consider pay-as-bid and uniform pricing and single and multiple bids. Moreover, we investigate the impact of investment cost uncertainty. In a sensitivity analysis we show how bid strategy adjustments affect the outcome. Specifically, higher uncertainty regarding the market clearing price increases the project value, as this additional uncertainty can be used to raise the probability of obtaining a higher level of remuneration by an adjusted auction strategy. The first- price auction can generate additional profits by placing a second, higher bid with a low probability of success. Investment cost uncertainty can have either a positive or negative impact on the project value, depending on the auction parameter values chosen.

Auction Schemes, Bidding Strategies and the Cost-Optimal Level of Promoting Renewable Electricity in Germany

Germany is among the leading countries regarding the promotion of renewable energy towards a sustainable energy system transition. In this paper, we investigate the German pilot auction scheme for solar photovoltaics introduced in the Renewable Energies Act 2014 (EEG 2104) that serves as a pilot for the auction-based promotion of the three major large-scale renewable electricity generation technologies (wind, solar, biomass) after 2017. A strategic bidding model is used to determine the optimal bidding strategy and to determine the resulting project value. We consider pay-as-bid and uniform pricing and single and multiple bids. Moreover, we investigate the impact of investment cost uncertainty. In a sensitivity analysis we show how bid strategy adjustments affect the outcome. Specifically, higher uncertainty regarding the market clearing price increases the project value, as this additional uncertainty can be used to raise the probability of obtaining a higher level of remuneration by an adjusted auction strategy. The first-price auction can generate additional profits by placing a second, higher bid with a low probability of success. Investment cost uncertainty can have either a positive or negative impact on the project value, depending on the auction parameter values chosen.

An Empirically Grounded Model of Green Electricity Adoption in Germany: Calibration, Validation and Insights into Patterns of Diffusion

Spatially explicit agent-based models (ABM) of innovation diffusion have experienced growing attention over the last few years. The ABM presented in this paper investigates the adoption of green electricity tariffs by German households. The model represents empirically characterised household types as agent types which differ in their decision preferences regarding green electricity and other psychological properties. Agent populations are initialised based on spatially explicit socio demographic data describing the sociological lifestyles found in Germany. For model calibration and validation we use historical data on the German green electricity market including a rich dataset of spatially explicit customer data of one of the major providers of green electricity. In order to assess the similarity of the simulation results to historical observations we introduce two validation measures which capture different aspects of the green electricity diffusion. One measure is based on the residuals of spatially-aggregated time series of model indicators and the other measure considers a temporally aggregated but spatially disaggregated indicator of spatial spread. Finally, we demonstrate the descriptive richness of the model by investigating simulation outputs of the calibrated model in more detail. In particular, the results provide insights into the dynamics of the spatial and lifestyle heterogeneity “underneath†the diffusion curve of green electricity in Germany.