System Dynamics Simulation to Explore the Impact of Low European Electricity Prices on Swiss Generation Capacity Investments

Verhoog, Reinier; Baal, Paul Adrianus van; Finger, Matthias

doi:10.1007/978-3-319-76867-0_3

Cited by 4 publications

(2 citation statements)

References 32 publications

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“…As discussed in the previous sections, electricity markets are characterized by discontinuous functions leading to complex behaviors. By studying the system behavior through the different switching manifolds, the Filippov method describes the electricity-market dynamics in more detail than conventional analysis [59]- [61]. To this end, we consider the following manifolds:…”

Section: A Filippov Analysismentioning

confidence: 99%

Non-Smooth Dynamics in Energy Market Models: A Complex Approximation From System Dynamics and Dynamical Systems Approach

et al. 2020

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and Colciencias (the Colombian research council) for the financial support under project 811-2018 Posdoctorados Nacionales. Gerard Olivar acknowledges Colciencias under project Modelado y simulación del metabolismo urbano de la ciudad de Bogotá D.C., code 111974558276; and DIMA, Universidad Nacional de Colombia under project Modelamiento avanzado de mercados de energía eléctrica para toma de decisiones de inversión y establecimiento de políticas, Hermes code 35467.

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Section: A Filippov Analysismentioning

confidence: 99%

Non-Smooth Dynamics in Energy Market Models: A Complex Approximation From System Dynamics and Dynamical Systems Approach

et al. 2020

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“…European energy affairs have traditionally been coordinated through various private and public networks (Jegen, 2009), yet, Switzerland's position in these networks has significantly deteriorated the last few decades, up to the point of exclusion in certain instances (Jenni, 2015). At the same time, Switzerland has committed to an ambitious energy transition focusing on the gradual phasing-out of nuclear energy, the most important source of electricity besides hydropower, which will likely increase its future dependence on the EU electricity system (Demiray et al, 2018;ElCom, 2018;Verhoog, van Baal, & Finger, 2018).…”

Section: Introductionmentioning

confidence: 99%

The Effect of European Integration on Swiss Energy Policy and Governance

Baal

Finger

2019

PaG

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The unique “Swiss way” of association with the European Union (EU) has received increasing attention in light of recent events such as Brexit as it is based on sectoral agreements without an overarching institutional framework. As such, Europeanization of Swiss domestic policy does not follow a straightforward process. We examine the external governance processes that drive the Europeanization of Swiss energy policy. Switzerland and the EU are highly interdependent in energy due to Switzerland’s geographical position but there is a relatively low level of policy alignment, as there is no formal EU-Swiss energy agreement nor has Switzerland autonomously implemented legislation equivalent to the EU energy acquis. The EU has fully liberalized the energy market and is focusing on consumer empowerment and decarbonization through the Clean Energy Package, whereas the Swiss energy sector remains only partially liberalized. Through a series of expert interviews with key stakeholders, we reconstruct the historical developments in Swiss energy policy, focusing on the relationship with, and the influence of the EU. We observe elements of each of the three ideal modes of governance—markets, hierarchies, and networks. The relative importance of these modes of coordination in governing EU-Swiss energy relations has shifted considerably over time. Gradual harmonization of EU energy markets and certain key events have driven Swiss exclusion from EU network governance processes, leading to more hierarchy. We identify the strengths and weaknesses of each mode of governance for EU-Swiss energy relations in their historical setting and discuss the implications for energy policy in Switzerland in the context of the Clean Energy Package and EU external relations in general.

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Effectiveness of a strategic energy reserve during the energy transition: The case of Switzerland

Baal

2019

Competition and Regulation in Network Industries

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Switzerland is considering implementing a strategic energy reserve, a novel policy instrument that remunerates power plant operators for storing a minimum amount of energy in reservoirs to convert into electricity when called upon. The policy is envisioned for the winter period, when the country’s large hydropower reservoirs tend to be nearly depleted. This study analyzes the impact of such a strategic energy reserve on security of supply, consumer costs, international trade, and sustainability. A hybrid simulation model is developed that combines agent-based modeling and system dynamics. The simulations show that the reserve can improve short-term security of supply but does not improve long-term security of supply as it does not impact domestic investments or reduce the import dependency in winter. The reserve leads to a slight increase in consumer costs, even when including the reduction in outage costs. A larger reserve is more effective at reducing the supply risk but is proportionally costly. Lastly, we find that the policy induces scarcity periods that would not have occurred otherwise, which means that the reserve should have a high strike price to ensure it is only called upon as a last resort. We conclude that there is no structural need for a strategic energy reserve, as it only increases short-term security of supply and does not contribute to solving the structural problem. Any implementation should be done on an ad hoc basis, conditional on a short-term generation adequacy assessment. This has the potential to minimize the associated costs while maximizing the benefits.

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System Dynamics Simulation to Explore the Impact of Low European Electricity Prices on Swiss Generation Capacity Investments

Cited by 4 publications

References 32 publications

Non-Smooth Dynamics in Energy Market Models: A Complex Approximation From System Dynamics and Dynamical Systems Approach

Non-Smooth Dynamics in Energy Market Models: A Complex Approximation From System Dynamics and Dynamical Systems Approach

The Effect of European Integration on Swiss Energy Policy and Governance

Effectiveness of a strategic energy reserve during the energy transition: The case of Switzerland

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