We analyze the impact of extensive wind development in Germany for the year 2015, focusing on grid extensions and price signals. We apply the electricity generation and network model ELMOD to compare zonal, nodal, and uniform pricing approaches. In addition to a reference case of network...

This paper applies nodal pricing as an economic approach to efficient use of electricity networks utilization for the fairly large German grid. We combine a straightforward welfare maximization with the technical specificities of electricity flows on a realistically large network. The nodal...

This paper examines the potential effects of Germany’s feed-in tariff policy for small roof-top solar PV systems installed between 2009 and 2030. Employing a partial equilibrium approach, we evaluate the policy by weighing the benefits from induced learning and avoided environmental...

Competition policy is an important tool of governments to establish functioning markets, particularly in the scope of liberalizing the energy sector. An examination of horizontal divestitures in several markets suggests that in appropriate cases divestiture can enhance competition in the...

Electricity markets depend on upstream energy markets to supply the fuels needed for generation. Since these markets rely on networks, congestion in one can quickly produce changes in another. In this paper we develop a combined partial equilibrium market model which includes the interactions of...

The overlapping impact of the Emission Trading System (ETS) and renewable energy (RE) deployment targets creates a classic case of interaction effects. Whereas the price interaction is widely recognized and has been thoroughly discussed, the effect of an overlapping instrument on the abatement...