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  • 1
    Publication Date: 2023-07-18
    Description: Multi-technology auctions are a popular instrument to support renewable electricity in the European Union. While they increase competition, some technologies could dominate, which might be an issue for some countries’ power system reliability. Using statistical methods, I analyse how balanced or skewed European multi-technology auctions are and investigate driving factors. I show that 80% of all multi-technology auction rounds from 2011 to 2020 were skewed, strongly or exclusively favouring one technology. None of the investigated design elements and general context factors can explain this. Instead, specific auction-external context factors may better explain the observed skewness. Furthermore, the aggregated outcome across all rounds, years, and countries is relatively balanced because the rounds are differently skewed. This could be coincidental and change in the future if outcomes remain strongly skewed. Policymakers may consider shifting to technology-specific auctions that target single technologies, particularly if they cannot manage the risks of skewed auction outcomes. Thereby, they promote a diverse and targeted deployment of renewables.
    Language: English
    Type: info:eu-repo/semantics/article
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  • 2
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    In:  Journal of comparative policy analysis : research and practice
    Publication Date: 2023-12-22
    Description: Today’s energy transition is marked by two key processes: the maturation of the renewable electricity system, and the declining fit between the new and incumbent electricity systems. Given these processes, how do governments change their policy priorities as the transition progresses? Our comparative analysis of six EU member states shows that governments dynamically adapt their policy priorities based on changes in their socio-technical systems. Our initial findings suggest that governments follow a specific sequence of policy priorities in the energy transition. Results stress how important it is that governments strategically sequence policy instruments for a smooth transition amid changing priorities.
    Language: English
    Type: info:eu-repo/semantics/article
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  • 3
    Publication Date: 2023-07-18
    Description: Support schemes have been central to the expansion of renewable electricity globally and in the European Union. As technologies mature, individual member states may decide to phase out these policies. While previous research has shown that such policy changes affect investors’ decisions, we investigate how they affect pathways and electricity prices by simulating investment decisions in an agent-based model in two case countries. This paper contributes and applies an adapted investment decision algorithm that incorporates empirically observed technology and return preferences and is calibrated by return observations. The new algorithm yields more refined and stronger effects compared to its predecessor. Results show that the phase-out of auctions in Germany and the Netherlands slows down their deployment of renewable capacity by up to ∼60% and ∼35%, respectively. With the exception of photovoltaics and onshore wind projects in the Netherlands, the targeted capacities can only be reached by continuing support in both countries. Furthermore, ending support in a large country like Germany leads to higher electricity prices and fosters a market-driven but insufficient capacity expansion in smaller neighbours like the Netherlands. As the electricity grids in many countries are strongly interconnected, such cross-border effects are of international relevance. Our findings suggest that continued auctions may be necessary and that countries should coordinate policy changes to stay on track for meeting their renewables targets.
    Language: English
    Type: info:eu-repo/semantics/article
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  • 4
    Publication Date: 2023-07-18
    Description: The economic context for renewable power in Europe is shifting: feed-in tariffs are replaced by auctioned premiums as the main support schemes. As renewables approach competitiveness, political pressure mounts to phase out support, whereas some other actors perceive a need for continued fixed-price support. We investigate how the phase-out of support or the reintroduction of feed-in tariffs would affect investors’ choices for renewables through a conjoint analysis. In particular, we analyse the impact of coordination – the simultaneousness – of policy changes across countries and technologies. We find that investment choices are not strongly affected if policy changes are coordinated and returns unaffected. However, if policy changes are uncoordinated, investments shift to still supported – less mature and costlier – technologies or countries where support remains or is reintroduced. This shift is particularly strong for large investors and could potentially skew the European power mix towards an over-reliance on a single, less mature technology or specific generation region, resulting in a more expensive power system. If European countries want to change their renewable power support policies, and especially if they phase out support and expose renewables to market competition, it is important that they coordinate their actions.
    Language: English
    Type: info:eu-repo/semantics/article
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  • 5
    Publication Date: 2023-07-18
    Description: Energy efficiency measures and the deployment of renewable energy are commonly presented as two sides of the same coin—as necessary and synergistic measures to decarbonize energy systems and reach the temperature goals of the Paris Agreement. Here, we quantitatively investigate the policies and performances of the EU Member States to see whether renewables and energy efficiency policies are politically synergistic or if they rather compete for political attention and resources. We find that Member States, especially the ones perceived as climate leaders, tend to prioritize renewables over energy efficiency in target setting. Further, almost every country performs well in either renewable energy or energy efficiency, but rarely performs well in both. We find no support for the assertion that the policies are synergistic, but some evidence that they compete. However, multi-linear regression models for performance show that performance, especially in energy efficiency, is also strongly associated with general economic growth cycles, and not only efficiency policy as such. We conclude that renewable energy and energy efficiency are not synergistic policies, and that there is some competition between them.
    Language: English
    Type: info:eu-repo/semantics/article
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  • 6
    Publication Date: 2023-07-18
    Description: Some German political parties and economists suggest ending the Renewable Energy Sources Act (EEG) surcharge in the power bill and instead financing renewables through the carbon tax. While the recent carbon pricing debate has focused on equity and political feasibility, it has neglected the elephant in the room: how would this change affect Germany's ability to meet the 2030 climate goals? Here, we show that this refinancing would put climate goals at risk. Purely market-based renewables are not yet viable, the change could therefore slow down their already sluggish deployment. We thus argue that the EEG remains the quintessential instrument for German climate policy in the coming decade.
    Language: English
    Type: info:eu-repo/semantics/other
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  • 7
    Publication Date: 2023-07-18
    Description: Learning rates are a central concept in energy system models and integrated assessment models, as they allow researchers to project the future costs of new technologies and to optimize energy system costs. Here we argue that exchange rate fluctuations are an important, but thus far overlooked, determinant of the learning-rate variance observed in the literature. We explore how empirically observed global learning rates depend on where technologies are installed and which currency is used to calculate the learning rate. Using global data of large-scale photovoltaic (≥5 MW) plants, we show that the currency choice can result in learning-rate differences of up to 16 percentage points. We then introduce an adjustment factor to correct for the effect of exchange rate and market focus fluctuations and discuss the implications of our findings for innovation scholars, energy modellers and decision makers.
    Language: English
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  • 8
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    In:  Tagesspiegel Background: Energie & Klima, 27. Oktober 2021
    Publication Date: 2023-07-18
    Description: Die Ampelkoalition plant die Abschaffung der EEG-Umlage. Das könnte bedeuten, Förderungsmechanismen auslaufen zu lassen sowie die Ausbauziele für Erneuerbare aufzugeben und die Entwicklung dem Markt zu überlassen, befürchtet Marc Melliger vom IASS Potsdam. In seinem Standpunkt schlägt er vor, stattdessen das EEG durch vermehrte Ausschreibungen zu stärken.
    Language: German
    Type: info:eu-repo/semantics/other
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