The development of renewable energies and supply security: A trade-off analysis

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper analyzes the effects of the green transformation on the German electricity sector with respect to the energy-political triangle. It focuses on how the development of renewable energies will affect security of electricity supply. In a cost-benefit analysis, the value of supply security is compared with its costs of provision. More specifically, the benefits of maintaining the present quality of electricity supply are the avoided social damages from electricity outages and are compared with the respective investment costs in the low-and medium-voltage distribution grid. It is shown that the transformation process towards a green and decentralized production structure will be costly for society, even though the costs can be reduced by different measures. Terms of use: Documents in EconStor mayJEL Code: Q41, Q48, D61.

Value of Lost Load: An Efficient Economic Indicator for Power Supply Security? A Literature Review

“…First, the consideration and weighting of the technical factors from Table 1 play a major role. If different assumptions are made in structuring the framework of the scenario, for instance about the duration or the regional location of the blackout [in the present case, Praktiknjo et al (2011) and Röpke (2013) consider Germany as a whole, Growitsch et al (2013) consider the level of the federal states, and Piaszeck et al (2013) consider the regional districts], then this affects the results obtained. Second, the subdivision of the industrial sectors influences the resulting VoLL values.…”

“…These investments are not damage costs but rather mitigation costs ( Table 2). However, the question arises of whether investments in backup systems are voluntary or rather, as in the case of hospitals, governed by legislation (Röpke, 2013). …”

“…In the optimum case, the level of supply security should be defined in such a way that the marginal damage costs, expressed by VoLL, are equal to the marginal costs for ensuring uninterrupted electricity supply (Röpke, 2013) (see Figure 1). Accordingly, the calculation of the economic indicator VoLL represents, on the one hand, an opportunity to determine the level of damage caused by a power interruption, the result of which, on the other hand, describes the value of power supply security (van der Welle and van der Zwaan, 2007).…”

“…Upon closer consideration, it becomes apparent that, for example, the studies by Praktiknjo et al (2011), Growitsch et al (2013), Piaszeck et al (2013), and Röpke (2013) regard the whole of Germany as the area of study, but the damage costs differ greatly. Another explanation can, therefore, be found in the differences in the more detailed methodological structure of the studies.…”

Coherent or inconsistent? Assessing energy security and climate policy interaction within the European Union

“…Using the idea of conflicting policy objectives (the "energy trilemma"), Umbach [17] shows how trade-offs between sustainability, security of supply and economic competitiveness are managed at the European level. Other authors have explored more specific synergies and trade-offs between renewable energies and energy security [18,19].…”