Now showing 1 - 10 of 12
  • Publication
    Balancing the books: unveiling the direct impact of an integrated energy system model on industries, households and government revenues
    Background: The transition towards a sustainable energy system is reshaping the demand for final energy, driven by the diffusion of new end-use technologies. This shift not only impacts consumers’ energy expenses, but also holds implications for the public budget. Building on data from a German energy transition scenario, we analyse the direct impact of energy costs on industries, low-income households, and changes in government revenues from the taxes and levies on final energy carriers. Our analysis considers the impact of current policies and explores a scenario introducing additional excise tax rates to offset potential revenue losses. Results: We found that substantial carbon price increases could generate revenues that offset the losses from excise taxes on fossil fuels while enabling the financing of renewable support from the public budget by the end of this decade. Nevertheless, a decline in government revenues from taxes and levies is anticipated after 2030 until the middle of the century due to the declining use of fossil fuels. Maintaining current excise tax revenues during the transition could be achieved by introducing additional excise taxes on fossil fuels and electricity. Lastly, our analysis indicated a continuous decline in household energy expenditures until 2050, whereas energy-intensive industries face adverse impacts due to decarbonisation. Conclusions: This research provides valuable insights into the fiscal implications of the energy transition, shedding light on different industrial sectors and households while considering the evolving impact on the public budget. Policymakers may need to consider systemic reforms or alternative financing mechanisms outside the energy system to balance the books.
  • Publication
    The landlord-tenant dilemma: Distributional effects of carbon prices, redistribution and building modernisation policies in the German heating transition
    A carbon price on heating fuels aims to reduce the use of fossil energy in the heating sector. However, it has a greater effect on tenants than on landlords. The heating transition requires adequate building insulation for efficientuse of low-temperature technologies. To encourage this particular kind of investment, German landlords are given the option to apply a modernisation levy of up to 8% on top of rents. Similar to carbon pricing, rent increases cause distributional effects. The net effect of these measures on tenants has not been analysed so far. Using a micro-simulation integrating representative empirical data on tenant households in Germany from KOSMA and the detailed building database TABULA, we analyse direct distributional effects of a carbon price (€55/t and €250/t), a per-capita redistribution of carbon price revenues and the modernisation levy (8% and 2% rent increases). The analysis shows that carbon prices and modernisation levies have strong regressive effects. These can be mitigated by the per-capita redistribution. However, the effect on tenants within a given income decile varies largely due to the diversity of buildings. Thus, when designing and evaluating policies, looking at average effects is not sufficientto assess economic impacts for individual households.
  • Publication
    Einsatz von Wasserstofftechnologien im Energiesystem
    Das Kapitel vergleicht die Rolle von Wasserstoff und synthetischen Energieträgern im Energiesystem und diskutiert ausgewählte Aspekte. Hierfür wurden Systemstudien herangezogen, die bestehendeWechselwirkungen zwischen Nachfrage, Erzeugung, räumlicher Verortung der Anlagen und den Aufbau und die Nutzung von Strom-, Gas- und Wärmenetzinfrastruktur berücksichtigen.
  • Publication
    Hydrogen technologies in energy systems
    This chapter compares the role of hydrogen and synthetic energy carriers in energy systems and discusses certain aspects of them. To this end, we have examined systemic studies that consider the existing interactions between demand, production, facility locations and the construction and use of power, gas and heating networks.
  • Publication
    Do almost mature renewable energy technologies still need dedicated support towards 2030?
    ( 2019) ; ;
    Rio, Pablo del
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    Resch, Gustav
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    Klessmann, Corinna
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    Hassel, Arndt
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    Elkerbout, Milan
    ;
    Rawlins, James
    The discussion on whether and how to continue support for almost mature renewable electricity (RES-E) technologies, such as onshore wind and PV, has recently intensified. In this paper we analyze arguments in the literature in favor and against the phase-out of renewables support in the context of increasingly competitive RES-E technologies. We conclude that there are good reasons to continue dedicated RES-E policies beyond 2020 for those technologies. Dedicated RES-E support can provide a predictable, secure investment framework that lowers the risk premiums required by investors and therefore reduces the capital costs of RES-E. In addition, there are still significant cost reduction potentials for these technologies. The increased use of renewables has multiple socio-economic benefits in addition to climate change mitigation. These arguments are still valid when looking at the current market situation characterized by oversupply and low prices on both the CO2 market and some power markets in Europe. Since renewables are not the main reason for the current oversupply, it would not be effective to take actions towards restoring market equilibrium in the form of radical or overall phase-out of RES-E support.
  • Publication
    Assessment of policy pathways for reaching the EU target of (at least) 27% renewable energies by 2030
    ( 2019)
    Resch, Gustav
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    Liebmann, Lukas
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    Geipel, Jasper
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    Janeiro, Luis
    ;
    Klessmann, Corinna
    ;
    ; ;
    Rio, Pablo del
    As an important first step in defining the framework for renewable energies (RE) within the European Union post 2020, a binding EU-wide target to achieve a renewables share of at least 27% of gross final energy demand by 2030 was adopted by the European Council and Parliament in October 2014. On 30 November 2016, the next step was taken: The European Commission published a package of proposed legislative measures for the time horizon from 2020 to 2030 called ""Clean Energy for all Europeans"", commonly referred to as the ""Winter Package"". It is aimed at facilitating the clean energy transition while developing the internal market for electricity, thus fostering the Energy Union. Within the scope of the Intelligent Energy Europe project ""towards2030-dialogue"" we have facilitated and guided the RE policy dialogue for the period up to 2030 over the past number of years. The dialogue process was coupled with in-depth and continuous analysis of relevant topics that included renewable energies in all energy sectors, but with more detailed analyses for renewable electricity. The analytical works included, for example, a first critical reflection on the Winter Package as well as a model-based analysis of distinct renewable electricity policy pathways up to 2030, including options for coordinating and aligning national support schemes as well as the clustering of regional support schemes. This chapter describes the approach taken and presents some of our key results together with recommendations on the way forward.
  • Publication
    How can the renewables targets be reached cost-effectively? Policy options for the development of renewables and the transmission grid
    ( 2018) ; ; ;
    Resch, Gustav
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    Olmos, Luis
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    Ramos, Andrés
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    Rivier, Michel
    Increasing the share of renewable energy sources in the electricity sector (RES-E) contributes to achieving the European energy and climate targets including a 27% share of renewables in final energy consumption by 2030. We assess the future costs of the power sector for different RES-target levels and support schemes including generation costs, system operation costs and transmission grid development costs based on three power sector models. The results show similar power system costs for different target levels. RES-E shares below 70% involve limited infrastructure costs that are below 2.6% of the overall system costs. The impacts of the modelled RES-E policies, an EU quota and national feed-in premiums on transmission costs are ambiguous: Contrary to expectations, the costs of transmission network development under quota obligations are lower than under technology-specific feed-in premiums for RES-E penetration levels up to 50%. The drivers of transmission costs include not only a concentration of renewable capacity, but also the exact location of RES-E capacity with respect to existing power plants and the strength of the existing infrastructure. Quota obligations lead to higher grid costs than feed-in premiums if the RES-E share amounts to 70% due to the stronger regional concentration of RES power plants.
  • Publication
  • Publication
    Challenges and appropriate policy portfolios for (almost) mature renewable electricity technologies
    ( 2017) ;
    Boßmann, Tobias
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    ;
    Río, Pablo Del
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    Janeiro, Luis
    ;
    Förster, Sonja
    This paper assesses challenges arising for renewable energy technologies that have achieved a certain maturity level in terms of technology development, costs and market penetration. We identify these challenges, which diverge from challenges for less mature technologies and, based on three case studies, we analyse how some of the challenges have materialised and have been dealt with in practice. Case studies include experiences with the occurrence of negative prices in Germany, the question of how to deal with a market situation characterised by overcapacity in Spain and the problem of social opposition towards the construction of renewable power plants in the UK. Finally, we suggest solutions to deal with these issues in order to ensure the 2030 target is achieved, taking into account the changing framework conditions.