Gestaltung der Energiewende: Dezentrale versus zentrale Elemente? - Jahreskonferenz des Leibniz-Forschungsverbundes Energiewende - DIW Berlin

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Gestaltung der Energiewende: Dezentrale versus zentrale Elemente? - Jahreskonferenz des Leibniz-Forschungsverbundes Energiewende - DIW Berlin
Jahreskonferenz des Leibniz-Forschungsverbundes Energiewende

Gestaltung der Energiewende:
Dezentrale versus zentrale Elemente?

Karsten Neuhoff, 30.06.2016
Gestaltung der Energiewende: Dezentrale versus zentrale Elemente? - Jahreskonferenz des Leibniz-Forschungsverbundes Energiewende - DIW Berlin
1      Aufteilung des deutschen Endenergiebedarfs (8700 PJ)

                                          (erneuerbar)

                                                         Erneuerbare
                           Strom (nicht
                           erneuerbar)

                                                                                             Fernwärme,
                                                                                 Mineralöl
                                                             Sonstige

                                                                                                Sonstige
                                                                        Erdgas
                                                Strom

                                                                                                  Kohle
          Haushalte

    Gewerbe, Handel
                 und
    Dienstleistungen

       Bergbau und
     Verarbeitendes
           Gewerbe

             Verkehr
                                                                                                           Basierend auf: AG
                                                                                                           Energiebilanzen (2016)
2
      Karsten Neuhoff, 29.3.2012
Gestaltung der Energiewende: Dezentrale versus zentrale Elemente? - Jahreskonferenz des Leibniz-Forschungsverbundes Energiewende - DIW Berlin
2          Make use of renewables to stabilize energy costs

                                                                                                                         Illustration excludes
                                                                                                                         system costs

                                                                                                                          Annuitized
                                                                                                                          Investment (at 5%)
                                                                                                                          for wind and solar
                                                                                                                          generation at scale
                                                                                                                          to replace fossil fuels

                                                                                                                            Annual expenditure
                                                                                                                            CO2 at 30 Euro/t
                                                                                                                            Domestic fossil fuel
                                                                                                                            Imported fossil fuel

 Similar cost level for serving demand with new wind and solar as with fossil fuel:
 - Cost of learning investment in wind and solar dominates debate but is sunk.
DIW Berlin Calculations based on BP Statistical Review of World Energy; Energy Statistics for the EU-28; Bundesverband Solarwirtschaft e. V.;
                                                                                                                                              Karsten Neuhoff
IEA; European Wind Energy Association; Bundesamt für Wirtschaft und Ausfuhrkontrolle, first published in Energy Journal (forthcoming)
Gestaltung der Energiewende: Dezentrale versus zentrale Elemente? - Jahreskonferenz des Leibniz-Forschungsverbundes Energiewende - DIW Berlin
Financing costs increase with (i) country situation (ii) policy design not
3      addressing market imperfection and policy risk

          Weighted average cost of
          capital for wind reported by
          European investors in 2014

    Based
      4 on DIA-CORE (2016): The impact of risks in renewable energy investments and the role of smart policies   Karsten Neuhoff
4   Power market and renewable policy needs to focus on risk management

                                                        1. Cooperation can
                                                        reduce financing cost for
                                                        countries.
                              10% ex-post adjustments,
                              country risks            2. Policy can reduce
                                                       financing cost for wind
                              8% Sweden
                                                       and solar by ensuring
                              (Certificate Scheme)
                                                       long-term stable
                              4% Germany, revenue      revenue streams.
                              guarantee with feed-in
                                                        3. RE benefit from
                                                        hedge at times of low
                                                        power prices:
                                                        Ensure consumers also
                                                        benefit at times of high
                                                        power prices.

    5                                                                 Karsten Neuhoff
5         Is there a case for continued technology differentiation?

                                        Wind and solar PV                                   Fossil fuel based generation
                                                                                            … and flexibility options …
    Capital costs                       ~ 80%                                               ~ 30%
    Main strategic choices              New investment decision                             (Re-)investment and retrofit decision
                                        Location and dimensioning                           Closure
                                                                                            Fuel contracting

    Capacity for government             High                                                Low
    to decide                           (homogenous technology,                             (inhomogeneous assets, large
                                        competition for entry)                              incumbent players, information
                                                                                            asymmetries)

    Other aspects                       RE trajectory required                              Government choices politically
                                        -    For grid investment                            contentious
                                        -    Supply chain / planning

    Strategic choices                   Policy-driven deployment                            Private sector determined
                                                                                            (financed on-balance sheet)

6    Neuhoff, Ruester and Schwenen (2016). Power Market Design beyond 2020: Time to Revisit Key Elements? The Energy Journal
                                                                                                                               Karsten Neuhoff
Short-term market design open for all technologies:
6        Time frame and platform

                                                                                                 % forecast error wind
2005                                                                                        40
2006
2007                                                                                        35
2008                                                                                        30
                                                                                            25
                                                                                            20
                                                                                            15
                                                                                            10
            Hours before real time                                                          5
                                                                                            0

Wind &               Can & need to adjust                                                                                Ensure deep intraday
solar                close to real time                                                                                  and real-time markets
                                                                                                                                  +
Coal &               Require early                                                                                       and consistent
most gas             start-up                                                                                            day-ahead markets

           Clearing platforms or auctions are increasingly used in US and Europe
           for short-term power markets.
  7      Neuhoff, Ritter, Salah-Abou-El-Enien, Vassilopoulos(2016) Intraday Markets for Power: Discretizing the
         Continuous Trading?, DIW Discussion Papers, 1544,                                                                            Karsten Neuhoff
           Data from Ignacio de la Fuente, Red Eléctrica de España
Short-term market design open for all technologies:
7        Bid format

          constraints of conventional assets                                   Multi-part bids can
                                                                               accomodate all needs
          Respect ramping and start-up

                                                                          Increase temporal granularity to
                                                                          ensure system balance and use
                                                                          flexibility of wind and solar
           Further dimensions that good market design needs to ensure:
           • Effective use of transmission capacity
           • System-wide pooling of reserves
8   Neuhoff, Ruester and Schwenen (2016). Power Market Design beyond 2020: Time to Revisit Key Elements? The Energy Journal
                                                                                                                              Karsten Neuhoff
8     Vorteile der Diversifikation durch europäischen EE Ausbau

           DEU und PL können Synergien in der Erzeugung bergen.

Es gilt Balance zu treffen zwischen (i) lokaler Erzeugung (Bürgerbeteiligung,
weniger Netze) (ii) besten Standorte (höhere Vollaststunden) (iii) räumliche
Verteilung (Systemvorteile)
9         Loop Flows bitte berücksichtigen I
 Wenn Realised Schedules DE→AT kleiner als 500 MW (01.2011–12.2012)

    Warum ist keine Interkonnektorkapazität zwischen DE und PL verfügbar?
Quelle: Joint study by ČEPS, MAVIR, PSE and SEPS regarding the issue of Unplanned flows in the CEE region in
relation to the common market area Germany – Austria, January 2013
10         Loop Flows bitte berücksichtigen I
Wenn Realised Schedules DE→AT größer als 3000 MW (01.2011–12.2012)

   Kapazität muss reserviert werden für loop flows und Sicherheitsmargen.
Quelle: Joint study by ČEPS, MAVIR, PSE and SEPS regarding the issue of Unplanned flows in the CEE region in
   11 to the common market area Germany – Austria, January 2013
relation
11    Die Bedeutung von funktionierenden Strommärkten

                         Nachbarregionen
                                            Speicher (Management)
     Erzeugung mit
     - Biomasse                             Nachfrageanpassung (Tage)
     - Gas+CO2                 Regionaler   - Einsparen (HH)
     - Kohle+CO2               Strommarkt   - Verschieben (Industrie)

     Erzeugung mit                          Substitution
     Wind, Solar, Hydro, ...                - Wärmepumpen versus Back-
                                              up Brennstoffe
                                            - Biomasse versus elektrische
                                              Heizung

                                            Nachfrageanpassung (Stunden)
                                            - Elektromobilität
                                            - Verschieben von
                                              Heizen/Kühlen

12
DIW Berlin — Deutsches Institut
für Wirtschaftsforschung e.V.
Mohrenstraße 58, 10117 Berlin
www.diw.de

Prof. Karsten Neuhoff, Abteilungskleiter Klimapolitik
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