2018
DOI: 10.1016/j.apenergy.2017.11.016
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How to decarbonize the natural gas sector: A dynamic simulation approach for the market development estimation of renewable gas in Germany

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Cited by 34 publications
(16 citation statements)
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“…With production costs for sustainable biomethane expected at a level of 46-94 €/MWh, production cost for renewable hydrogen at a level of 52-75 €/MWh, and the corresponding costs for synthetic renewable methane at a level of 100-150 €/MWh, they all lie substantially above the currently observed average European wholesale price for natural gas (around 20 €/MWh) [98]. If the gas price stays at this level and as long as there is no comprehensive carbon pricing regime, rational economic decisions to invest in major additional renewable gas production can only be expected if backed by effective support to compensate for the premium over the natural gas wholesale price [9,99,100]. We empirically examined one such support scheme (see "Enabling factors for gas sector contributions to a future EU energy system" section for description and "Enabling factors" section for discussion).…”
Section: Micro-economic Conditions For Renewable Gas Productionmentioning
confidence: 99%
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“…With production costs for sustainable biomethane expected at a level of 46-94 €/MWh, production cost for renewable hydrogen at a level of 52-75 €/MWh, and the corresponding costs for synthetic renewable methane at a level of 100-150 €/MWh, they all lie substantially above the currently observed average European wholesale price for natural gas (around 20 €/MWh) [98]. If the gas price stays at this level and as long as there is no comprehensive carbon pricing regime, rational economic decisions to invest in major additional renewable gas production can only be expected if backed by effective support to compensate for the premium over the natural gas wholesale price [9,99,100]. We empirically examined one such support scheme (see "Enabling factors for gas sector contributions to a future EU energy system" section for description and "Enabling factors" section for discussion).…”
Section: Micro-economic Conditions For Renewable Gas Productionmentioning
confidence: 99%
“…As outlined above, renewable gases can largely be supplied through existing network and storage infrastructure. Massive expansion will be required in renewable gas production, and this Table 5 Overview of production cost estimates for renewable gases (based on [7-9, 11, 12, 52, 60, 83, 95, 110] hinges on sufficient financial support [10,99]. This is a situation we observe not only in renewable gas but for the broad majority of renewable energy generation technologies and approaches [13,78].…”
Section: Micro-economic Conditions For Renewable Gas Productionmentioning
confidence: 99%
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“…Required, however, will be a massive scale-up of renewable gas production. Prerequisite for that are sufficient support levels [16,101]. This, however, is not limited to renewable gas, but applicable for the entire field of different renewable energy generation technologies and approaches in general [25,62].…”
Section: Micro-economic Conditions For Renewable Gas Productionmentioning
confidence: 99%
“…In addition to the already discussed need for a support scheme to improve the business case of renewable gas production for operators and investors [15,101,102], our empirical work with focus on the Austrian case delivered a somewhat broader picture of enabling factors to unlock gas sector contributions in an efficient and sustainable way. While these different elements might not be fully applicable or relevant in other EU member states and national specifics could lead to partly different conclusions, we believe some central observations addressed in the following are considered to have general validity.…”
Section: Enabling Factorsmentioning
confidence: 99%