Innovation sociological analysis of the market integration of electricity from renewables in the German electricity markets. Direct marketing of RES-E seen as a new strategic action field in the German "Energiewende". Strategies of incumbent and challenger actors to shape the rules of the field. Suggestions for the future design of policy instruments for direct marketing of RES-E. a b s t r a c t Electricity generated by renewable energies (RES-E) already accounts for 25% of Germany's electricity supply. This has led to recent discussions for a better market integration of RES-E. The paper examines how competing actors and their ideas on market integration developed new services for direct marketing according to their respective origins and tried to shape the regulatory framework. The paper analyses this process and explains the current shape of the field of direct marketing. Medium-sized structured actors, who favoured RES-E integration via the conventional wholesale power markets, and who formed early close coalitions with RES-E power producers at the same time, have been most successful in terms of market shares. Moreover, they have been very successful for different reasons in building-up coalitions with governance units and influencing the field rules and routines. Based on those findings, the paper will conclude with some policy advices for the future adjustment of the current regulative frameworks. As long as there is no evidence of how RES-E can be integrated most effectively and efficiently, policies should maintain a competition between different direct marketing strategies to find out which strategies serve the best in terms of achieving a successful energy transition.
The ongoing deployment of renewable energy sources (RES) calls for an enhanced integration of RES into energy markets, accompanied by a new set of regulations. In Germany, for instance, the feed-in tariff legislation for renewables has been successively replaced by first optional and then obligatory marketing of RES on competitive wholesale markets. This paper introduces an agentbased model that allows studying the impact of changing energy policy instruments on the economic performance of RES operators and marketers. The model structure, its components, and linkages are presented in detail; an additional case study demonstrates the capability of our sociotechnical model. We find that changes in the political framework cannot be mapped directly to RES operators as behaviour of intermediary market actors has to be considered as well. Characteristics and strategies of intermediaries are thus an important factor for successful RES marketing and further deployment. It is shown that the model is able to assess the emergence and stability of market niches.
Background: Increasing the market and system integration of renewable energy sources (RES) is regarded as key to reducing the costs of RES support and transforming the electricity system. In several EU countries, feed-in premium schemes have been implemented to better align RES production with electricity prices and to enhance the efficiency of RES marketing by increasing direct participation of producers in electricity markets. This paper examines the lessons learned from the German market premium scheme, which was introduced in the Renewable Energy Sources Act 2012 as an optional alternative to feed-in tariffs. The 2014 reform of that law has made direct marketing mandatory except for small RES plants, thus establishing the sliding market premium as the new primary instrument of RES support. Methods: Combining a qualitative economic analysis with insights from sociological research on direct marketing and simulation results from agent-based modelling, we evaluate how well the optional market premium has performed in setting incentives for demand-oriented RES production and efficient marketing of RES electricity. Furthermore, we examine what efficiency gains can be realistically expected from the changes implemented in 2014, and discuss whether the direct marketing model adopted in Germany is a promising approach for improving the market integration of RES. Results: We find that direct marketing has made a positive contribution to the marketing efficiency of dispatchable RES; for intermittent RES, it provides few structural changes compared to marketing through transmission system operators. The benefits of a greater demand-orientation of RES feed-in remain limited when considering the extent to which load shifting is incentivised. For intermittent RES in particular, incentives for demand-oriented feed-in are only effective in times of negative electricity prices when voluntary curtailment is encouraged.
Electricity generation from renewables in Germany has now reached an energy economically relevant magnitude. The further increase of electricity from renewable energy sources is driven by the Energy Concept enacted by the Federal Government in 2010 with the goal of transforming the energy system into a renewable based one by 2050 [1]. In order to achieve the political targets reorganization in terms of technical, organizational and financial aspects is needed. The transition and structural adjustments are characterized by a huge variety of actors, who are connected through complex interactions with one another and who react very differently to changes in the energy economic environment. We will present the agent-based simulation model AMIRIS (Agent-based Model for the Integration of Renewables Into the Power System), which can be used as policy design tool to foster the integration of renewable energy sources into the electricity market 1 .
We report a potential self-reinforcing design flaw in the variable market premium scheme that occurs if variable renewable energy power plants receiving a premium become price-setting in the market. A high share of renewable energy is a goal of many countries on their transformation path to a sustainable future. Accordingly, policies like feed-in tariffs have been in place for many years in many countries to support investment. To foster market alignment, variable market premia have been introduced in at least 12 European countries and a further dozen additional countries world-wide. We demonstrate both with a mathematical model and different scenarios of an agent-based simulation that the combination of variable premia and a high share of hours in which renewables are price-setting may lead to a self-reinforcing downward spiral of prices if unchecked. This is caused by the market premium opening up the bidding space towards negative prices. We discuss possible objections and countermeasures and evaluate the severity of this market design flaw.
Background: Many governments take the view that voluntary national targets to reduce greenhouse gas emissions are sufficient to avoid negative climate effects. In the absence of independent verification, however, pledges are unlikely to be sufficient for a rapid and strong reduction of emissions. It is often claimed that a global carbon tax could be an effective instrument. However, such a tax is difficult to set and to collect, especially in countries with poor administrative infrastructure. Results: Here, we formulate and discuss a novel approach, the Global Carbon Surcharge (GCS), that mimics a carbon tax but does not require tax collection by governments. We define GCS as a requirement or a voluntary commitment encompassing all companies extracting carbon-carrying raw materials, namely coal, oil, gas and limestone, with the aim to burden their extraction with costs proportional to their carbon intensity. GCS mandates all companies to store these materials immediately after mining for a given period of time in the vicinity of the production site. Thereby, GCS generates additional costs that propagate through all sectors of the global economy. We elucidate how the investment costs for the storage infrastructure translate into surcharges on the raw materials. Conclusions: We show that by a proper choice of the storage time and the size of the storage unit, GCS becomes equivalent to a carbon tax in the range between 50 and 100 € per ton of CO 2 that is assumed to be necessary for the transition to a carbon-neutral energy system. An attractive feature of GCS is that it can be verified, in particular by citizens themselves, using publicly available satellite data. Finally, if compulsory storage is coupled to blockchainbased smart contracts and a mandatory (expensive) mining of cryptocurrency, GCS can be operated without governmental protectionism, corruption and fraud. However, the main uncertainties of the GCS approach lie in the substantial expansion of infrastructure and the fact that the induced price effects must be sufficient to achieve a rapid and far-reaching substitution of fossil fuels.
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In this paper we introduce FAME-Core, a Java library supporting development and execution of agent-based simulation models (ABM). It is a main component of the open Framework for distributed Agent-based Models of Energy systems. FAME-Core offers rapid development and fast simulation execution capabilities while reducing required programming skills and efforts for creating and running complex ABM.
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