Carbon reduction and renewable energy policies are implemented in Europe to improve the sustainability of the electricity sector while achieving security of supply. We investigate the interactions between these policies using a dynamic investment model. Our analysis indicates that both policies...

The recent low CO2 prices in the European Union Emission Trading Scheme (EU ETS) have triggered a discussion whether the EU ETS needs to be adjusted. We study the effects of CO2 price floors and a price ceiling on the dynamic investment pathway of two interlinked electricity markets (loosely...

We ask under what conditions transmission contracts increase or mitigate market power. We show that the allocation process of transmission rights is crucial. In an efficiently arbitraged uniform price auction generators will only obtain contracts that mitigate their market power. However, if...

Achieving the objectives of the German governments 2010 Energy Concept and the accelerated phase-out of nuclear energy will require significant investment in restructuring energy supply. In particular, this includes investment in installations for the use of renewable energy sources in the power...

There is an ongoing discussion about whether the German electricity market offers sufficient incentives for investment in power plants and for keeping them connected to the grid, thus ensuring sufficient security of supply. Recommendations for further securing power supply include payments, some...

Die Förderung durch das Erneuerbare-Energien-Gesetz (EEG) hat in den letzten Jahren zu einem unerwartet starken Ausbau von Anlagen zur Erzeugung von Solarstrom (Photovoltaik) geführt, weil die Systempreise der Photovoltaikanlagen schneller gesunken sind als die gesetzlich garantierten...

2013 will see a significant increase in the surcharge stipulated by the Renewable Energy Sources Act (EEG) and paid by power consumers to promote the use of renewable energies. This will equate to a rise in the share of private households' consumer spending on electricity from around 2.3 percent...

The German Renewable Energy Sources Act (EEG) has proven to be an effective instrument in promoting electricity from renewable resources, and the same basic structure has been adopted by a large number of other countries. The support provided for in the EEG consists particularly of a guaranteed...

"Grüne" Investitionen können in einem europäischen Wachstumspaket eine zentrale Rolle einnehmen, da sie kurzfristig spürbare Beschäftigungsimpulse und mittel- bis langfristig positive fiskalische Effekte auslösen können. Die Summe der zusätzlichen "grünen" Investitionen könnte die...