Energy Market

Wolf-Peter Schill is Deputy Head of the Energy, Transportation, Environment Department at the German Institute for Economic Research (DIW Berlin), where he leads the research area Transformation of the Energy Economy. He engages in open-source power sector modeling, which he applies to economic analyses of renewable energy integration, energy storage, and sector coupling. He holds a diploma in environmental engineering and a doctoral degree in economics from Technische Universität Berlin.
Electricity systems based on renewables have an increasing demand for flexibility. This paper considers the potential of power-to-gas to provide flexibility and enhance system integration of renewables. Existing research on power-to-gas typically analyses the system effects of a predetermined power-to-gas unit without endogenising the investment decision. Moreover, insights related to market and portfolio effects of power-to-gas are rare. To this end this work presents a stochastic electricity market model.
Currently, renewable energy is rapidly developing across the world in response to technical, economic and environmental developments, as well as political and social initiatives. On the other hand, excessive penetration of distributed generation (DG) systems into electrical networks may lead to various problems and operational limit violations, such as over and under voltages, excessive line losses, overloading of transformers and feeders, protection failure and high harmonic distortion levels exceeding the limits of international standards.
100% in 139 countries
We develop roadmaps to transform the all-purpose energy infrastructures (electricity, transportation, heating/cooling, industry, agriculture/forestry/fishing) of 139 countries to ones powered by wind, water, and sunlight (WWS). The roadmaps envision 80% conversion by 2030 and 100% by 2050. WWS not only replaces business-as-usual (BAU) power, but also reduces it ∼42.5% because the work: energy ratio of WWS electricity exceeds that of combustion (23.0%), WWS requires no mining, transporting, or processing of fuels (12.6%), and WWS end-use efficiency is assumed to exceed that of BAU (6.9%).
Capacity planners in developing countries frequently use screening curves and other system-independent metrics such as levelized cost of energy to guide investment decisions. This can lead to spurious conclusions about intermittent power sources such as solar and wind whose value may depend strongly on the characteristics of the system in which they are installed, including the overall generation mix and consumption patterns.
The objective of this study is to explore empirical evidence on the quantitative importance of supply, demand, and market shocks for price changes in international food commodity markets.
What is the best strategy to encourage research and development on new energy technologies in a market economy? What steps can ensure a rapid and efficient transition to an economy that has much lower net carbon emissions? This paper shows that, under limited conditions, a necessary and sufficient condition for an appropriate innovational environment is a universal, credible, and durable price on carbon emissions.