The German government’s multi-decade effort to transition to a low-carbon, renew-ables-based energy economy is now commonly known as “energiewende” (“energy transition”). The transition has four major objectives: increasing the share of renewables to at least 80% (in electricity) and 60% for total final energy consumption, reducing greenhouse gas emissions by 80-95% (basis: 1990), phasing out…
2014
Do Consumers Want Smart Meters? Incentives or Inertia: Evidence from North Carolina and Lessons for Policy
In an effort to improve efficiency of electrical markets the U.S. government hopes to encourage changing household use patterns, such as dishwasher and clothes dryer use, to off-peak times. One strategy has been to subsidize the installation of smart meters. In addition the government has encouraged electrical energy conservation by providing incentives for energy saving…
Power System Transformation toward Renewables: Investment Scenarios for Germany
We analyze distinctive investment scenarios for the integration of fluctuating renewables in the German power system. Using a combined model for dispatch, transmission, and investment, three different investment options are considered, including gas-fired power plants, pumped hydro storage, and transmission lines. We find that geographically optimized power plant investments dominate in the reference scenarios for…
Demand Side Response: Patterns in Europe and Future Policy Perspectives under Capacity Mechanisms
Demand Side Response (DSR) has been slow to emerge in European electricity markets. This paper aims to both examine the reasons for low levels of DSR in Europe and reflect on factors that might affect the participation of DSR in capacity mechanisms. It relies on available evidence from the literature, secondary data on existing DSR…
Book Reviews
Energy subsidies: How large are they and how can they be reformed?
Energy subsidies are pervasive. Pretax subsidies, which arise when energy consumers pay less than the supply cost of energy, are high in many developing and emerging economies. Although pretax subsidies are not prevalent in advanced economies, they have large tax subsidies. These arise when energy is taxed below the rate of other consumption goods and…
New Alignments? The Geopolitics of Gas and Oil Cartels and the Changing Middle East
The ongoing democratic movements and civil wars in the Middle East have challenged the stability of regimes across the region. On the other hand, the commercial exploitation of large reserves of unconventional oil and gas in the United States is poised to significantly change the current equilibrium in energy markets. What are the implications of…
Energy Reforms and Consumer Prices in the EU over twenty Years
To what extent have the European households benefited from the energy reforms of the last two decades in the EU? The core ingredients of change have been, in different proportions and timing across countries: privatization of formerly state-owned enterprises, unbundling of networks, market liberalization and regulation. This paper summarizes some empirical findings of a team…