application: res-e promotion 1. policy background 2. efficiency considerations 3. numerical...
TRANSCRIPT
![Page 1: Application: RES-E Promotion 1. Policy Background 2. Efficiency Considerations 3. Numerical Framework (ELEC-MR) 4. Policy Analysis](https://reader035.vdocuments.mx/reader035/viewer/2022072006/56649f4f5503460f94c71345/html5/thumbnails/1.jpg)
Application: RES-E Promotion
1. Policy Background
2. Efficiency Considerations
3. Numerical Framework (ELEC-MR)
4. Policy Analysis
![Page 2: Application: RES-E Promotion 1. Policy Background 2. Efficiency Considerations 3. Numerical Framework (ELEC-MR) 4. Policy Analysis](https://reader035.vdocuments.mx/reader035/viewer/2022072006/56649f4f5503460f94c71345/html5/thumbnails/2.jpg)
1. Policy Background
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• Two strategies to promote RES-E in Europe:
- Feed-in tariff systems with differentiated (technology-specific) subsidies
- Quota obligations with trade (TGCs:= tradable green certificates)
Alternative RES-E Promotion Schemes
Feed-in tariffs
Key question: Price tag for additional objectives than greening of electricity (additional costs of differentiated feed-in)?
Green quotas
+ Flexibility (easily adjustable)
+ Low risk for investors
+ Serves additional targets
(industrial / regional policy goals)- Demands „well informed“ regulation- Danger of over-funding (rent seeking)- Potentially high excess costs
+ Little information requirements
+ Efficient de-centralized mechanism
- Risk and uncertainties about future
market developments
- „Hurdles“ for infant technologies
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2. Efficiency Considerations
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Uniform feed-in tariff
(eq. regional quota)Diversified feed-in tariff
Additional Cost of Diversified Feed-In
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3. Numerical Framework
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ELEC-MR: Basic Model Structure
Supply
Company 1
Company 2 . . . Company n
Region 2
Region r
Residential demand - Base-load - Peak-load
Industrial demand - Base-load - Peak-Load
Residential demand - Base-load - Peak-load
Industrial demand - Base-load - Peak-Load
Supply
Company 1
Company 2 . . . Company n
Region 1
T
• Static (short-term) representation of EU electricity markets
• Cournot competition among EU power companies
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ELEC-MR: Parametrization
• 23 countries (EU-25 without Malta and Cyprus)
• 1160 power plants
– 11 representative technologies
– Detailed bottom-up Information on costs
• 210 companies
Supply:
• 23 countries (EU-25 without Malta and Cyprus)
• Residential and industrial electricity demand
– Load-specific demand pattern (base, peak)
– Elastic demand (demand elasticities for 4 segments: industrial-base, industrial-peak, residential-base, residential-peak)
Demand:
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4. Policy Analysis
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Illustrative Policy Scenarios
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Results (1): EU Technology Mix
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
BaU FEED_D FEED_H QUOTA_R QUOTA_EU
Share in total production [in %]
Nuclear Soft Coal and Lignite Hard Coal Natural Gas
Fuel Oil Hydro Biomass Wind
Solar Other RES
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Results (2): RES-E Mix
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FEED_D FEED_H QUOTA_R QUOTA_EU
Share in total RES-E production [in %]
Hydro power Solid Biomass Other Biomass Waste
Solar PV and Solarthermal Wind onshore Wind offshore Other RES-E
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Results (3): Economic Indicators