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Renewable Electricity and Backup Capacities: An (Un-) Resolvable Problem?

Aaron Praktiknjo and Georg Erdmann

Year: 2016
Volume: Volume 37
Number: Bollino-Madlener Special Issue
DOI: 10.5547/01956574.37.SI2.apra
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Abstract:
Public support for renewables has led to an unexpected investment momentum in Germany. A consequence is a reduction in wholesale electricity prices, the so-called merit order effect of renewables. We estimate this reduction using an econometric approach and provide a quantitative overview of the financial situation of conventional generators. Our results indicate that investments in new conventional capacities are economically unviable. With the current market design, this situation is going to impact supply security, at least in the long run. A popular approach to address this issue is the introduction of additional public support for conventional power plants. However, we believe that subsidizing renewable and conventional capacities contradicts the idea of a liberal market. We present two alternatives: State control of investments in renewables through auctions (as proposed by the European Commission), and a premium paid to representatives of the demand side (such as retailers) in dependence of their shares of renewables.



Which Way to Choose? A Generic Modular Life Cycle Assessment for Hydrogen Production and Import Pathways to Germany

Christina Kockel, Jakob Kulawik, David Wohlleben, and Aaron Praktiknjo

Year: 2024
Volume: Volume 45
Number: Special Issue
DOI:
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Abstract:
Hydrogen is set to become a cornerstone of global low-carbon energy systems globally. This study uses Germany as a case study to examine various hydrogen production and import pathways, with a focus on their Global Warming Potential (GWP). Employing a modular life cycle assessment, we identify and evaluate the primary environmental drivers across these pathways, which include production, conversion, transportation, and reconversion stages. Our findings highlight the significance of the electricity source for hydrogen production and conversion, as well as the efficiency of subsequent processes, including carbon capture rates for blue hydrogen, as critical factors influencing GWP. The necessity for hydrogen imports in countries with high demand and limited domestic production underscores the importance of optimizing hydrogen supply chains for reduced CO2 emissions. This analysis offers valuable insights for advancing sustainable energy transitions in other high-demand regions as well.



Long-term Energy Policy vs. Dynamic Public Preferences? A Review of German Energy Policy

Christina Kockel, Jakob Kulawik, Saskia Spiegelburg, and Aaron Praktiknjo

Year: 2024
Volume: Volume 45
Number: Special Issue
DOI:
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Abstract:
During the energy crisis peaking in 2022, numerous countries have implemented short-term and immediate policy measures to reinforce security of energy supply and lower energy prices, often at the expense of environmental compatibility. This can be considered a sudden shift in the relative prioritization among these three energy policy goals. However, the sudden political rearrangement of energy policy priorities during the energy crisis in 2022 is only one illustration of a rapid shift. Historically, abrupt changes in public opinion have also prompted short-term adjustments in energy policy. This paper focuses on the dynamic relationship between public opinion and energy policy using the case of Germany. Specifically, we examine the relationship between changing public preferences and energy policy reaction regarding three significant events: the phase-out of nuclear energy, the phase-out of coal-fired power and heat generation, and the recent energy crisis in 2022. Our paper aims to assess the extent to which short-term shifts in public preferences can be aligned with efficient long-term planning of the energy system and identify the potential challenges that may arise during the process.





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