The economy-wide effects of large-scale renewable electricity expansion in Europe: The role of integration costs

Bachner, Gabriel; Steininger, Karl W.; Williges, Keith; Tuerk, Andreas

doi:10.1016/j.renene.2018.09.052

Cited by 35 publications

(18 citation statements)

References 22 publications

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“…The writers explained these negative association due to the highest market cost for thermal power plants, and due to a high capital intensity in PV and wind. The result was a county-specific as in some countries in Western, Northern and Eastern Europe, the wind power has higher welfare than PV, on the other hand, the case was reversed in Southern, and Eastern Europe with a great deal of welfare is for PV (Bachner, 2019).…”

Section: The Economic Effect Of Renewable Energymentioning

confidence: 98%

Examination of the Relationship between Renewable Energy and Economic Performance

Boubou

Kiss

2020

IJEMS

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Many countries are making considerable efforts to achieve solutions to environmental problems that we face today and developing renewable energy resources is one of the potential long-term solutions that constitute an absolute priority from a sustainable development perspective. The usage of renewable energy is one of the critical future challenges to reduce greenhouse gas emission and decrease energy dependency at the same time. Thus, replacing traditional energy sources with renewable ones, like Hydropower and wind power to produce electricity instead of fossil fuel. The objective of this study is to find a relationship between renewable energy consumption, macroeconomic factors, and the environment. There is a reliable and significant (at 1% significant level) association between REC with GHG and GDP and a relatively strong association with EC.

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Section: The Economic Effect Of Renewable Energymentioning

confidence: 98%

Examination of the Relationship between Renewable Energy and Economic Performance

Boubou

Kiss

2020

IJEMS

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“…For several years, Greece has been in recession and under credit crunch conditions, with high interest rates and high costs of capital due to a high risk profile; due to these conditions, its WACC is assumed to be high relative to the rest of Europe, around 12% [21]. It is characterized by a high share of fossil fuels in its electricity mix; 18% of primary energy supply (26% of electricity generation) was derived from renewables in 2018, mainly by wind and solar PV [22].…”

Section: Greecementioning

confidence: 99%

The potential for successful climate policy in National Energy and climate plans: highlighting key gaps and ways forward

Williges

Gaast²,

Bruyn-Szendrei³

et al. 2022

Sustain Earth

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Background The EU “Winter Package” sets out specific energy and climate goals and urged formation of National Energy and Climate Plans (NECPs) by Member States for 2020 to 2030. Integrating scaled-up mitigation technologies within existing economic and social structures face numerous difficulties and require careful planning. While some options may be less suitable than others within a given country context, solutions exist to mitigate negative impacts and build local acceptance. We assess the resulting plans in the context of: (i) economic effects, the trade-offs arising from scaled-up technologies in terms of energy system- and macroeconomic effects; (ii) climate effectiveness, via assessment of carbon payback times of technologies, and (iii) social aspects, with a focus on identifying approaches for wider social adoption and acceptance of mitigation options. Assessment takes the form of case studies for Greece, Austria, and the Netherlands, three EU member states with very different preconditions. Results In terms of economic efficiency, NECPs lack consideration of the unique properties inherent in large-scale renewable energy deployment, and we suggest a possible way forward for future macroeconomic assessment via incorporating integration costs. For economic efficiency, we find that countries may be overestimating their contributions to GHG reduction targets via failure to incorporate life-cycle based analysis. Addressing feasibility, we find that countries address acceptance to different extents, with Greece and Austria holding stakeholder workshops and allowing for public comment on draft NECPs, while the Netherlands undertook a more extensive effort to ensure local public acceptance and involvement in planning. Conclusions The results illustrate that even though NECPs may be finalized, their success is far from ensured, and neglecting to consider key aspects of efficiency, effectiveness and feasibility may result in underestimation of impacts, failure to have as large an impact on GHG reduction as expected, or increasing public resistance to climate policies. We present approaches to deal with gaps in economic and environmental assessment, and highlight methods for improving public acceptance via examples from the case studies and related literature.

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“…A similar approach is followed in the USREP model (Tapia-Ahumada et al, 2015). Bachner et al (2019a) include the integration costs of intermittent renewables in the form of higher capital costs for wind and solar (grid integration), but also for nonintermittent sources of electricity generation (modified utilization of existing dispatchable power plants). In the AIM/CGE model, storage and curtailment of variable renewable energy are considered explicitly.…”

Section: Intermittency Of Renewablesmentioning

confidence: 99%

Capturing Key Energy and Emission Trends in CGE Models: Assessment of Status and Remaining Challenges

et al. 2020

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Limiting global warming in line with the goals in the Paris Agreement will require substantial technological and behavioural transformations. This challenge drives many of the current modelling trends. This article undertakes a review of 17 state-of-the-art recursive-dynamic computable general equilibrium (CGE) models and assesses the key methodologies and applied modules they use for representing sectoral energy and emission characteristics and dynamics. The purpose is to provide technical insight into recent advances in the modelling of current and future energy and abatement technologies and how they can be used to make baseline projections and scenarios 20-80 years ahead. Numerical illustrations are provided. In order to represent likely energy system transitions in the decades to come, modern CGE tools have learned from bottom-up studies. Three different approaches to baseline quantification can be distinguished: (a) exploiting bottom-up model characteristics to endogenize responses of technological investment and utilization, (b) relying on external information sources to feed the exogenous parameters and variables of the model, and (c) linking the model with more technology-rich, partial models to obtain bottom-up-and pathwayconsistent parameters.

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The economy-wide effects of large-scale renewable electricity expansion in Europe: The role of integration costs

Cited by 35 publications

References 22 publications

Examination of the Relationship between Renewable Energy and Economic Performance

Examination of the Relationship between Renewable Energy and Economic Performance

The potential for successful climate policy in National Energy and climate plans: highlighting key gaps and ways forward

Capturing Key Energy and Emission Trends in CGE Models: Assessment of Status and Remaining Challenges

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