IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/65659.html
   My bibliography  Save this paper

Germany’s Wind Energy: The Potential for Fossil Capacity Replacement and Cost Saving

Author

Listed:
  • Weigt, Hannes

Abstract

Wind energy has become the major renewable energy source in Germany with an installed capacity of more than 20 GW and an annual output of about 40 TWh in 2007. In this paper we analyze the extent to which wind energy can replace fossil capacities based on wind injection and demand data for 2006 through June 2008. The results indicate that the wind potential in Germany will not allow a significant reduction of fossil capacities. We also assess the potential savings due to wind energy. The German market is modeled with and without wind input to estimate the net savings of fossil fuels in the observation period. We find that the cost-saving potential for electricity production is quite significant in the study period and exceeds the subsidies.

Suggested Citation

  • Weigt, Hannes, 2008. "Germany’s Wind Energy: The Potential for Fossil Capacity Replacement and Cost Saving," MPRA Paper 65659, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:65659
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/65659/1/wp_em_29_Weigt_Wind_Germany.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bode, Sven, 2006. "On the impact of renewable energy support schemes on power prices," HWWI Research Papers 4-7, Hamburg Institute of International Economics (HWWI).
    2. Lund, Henrik, 2005. "Large-scale integration of wind power into different energy systems," Energy, Elsevier, vol. 30(13), pages 2402-2412.
    3. Sensfuß, Frank & Ragwitz, Mario & Genoese, Massimo, 2007. "The merit-order effect: a detailed analysis of the price effect of renewable electricity generation on spot market prices in Germany," Working Papers "Sustainability and Innovation" S7/2007, Fraunhofer Institute for Systems and Innovation Research (ISI).
    4. Weigt, Hannes & Hirschhausen, Christian von, 2008. "Price formation and market power in the German wholesale electricity market in 2006," Energy Policy, Elsevier, vol. 36(11), pages 4227-4234, November.
    5. Hoogwijk, Monique & van Vuuren, Detlef & de Vries, Bert & Turkenburg, Wim, 2007. "Exploring the impact on cost and electricity production of high penetration levels of intermittent electricity in OECD Europe and the USA, results for wind energy," Energy, Elsevier, vol. 32(8), pages 1381-1402.
    6. Sensfuß, Frank & Ragwitz, Mario & Genoese, Massimo, 2008. "The merit-order effect: A detailed analysis of the price effect of renewable electricity generation on spot market prices in Germany," Energy Policy, Elsevier, vol. 36(8), pages 3076-3084, August.
    7. Lund, H. & Münster, E., 2003. "Management of surplus electricity-production from a fluctuating renewable-energy source," Applied Energy, Elsevier, vol. 76(1-3), pages 65-74, September.
    8. Rathmann, M., 2007. "Do support systems for RES-E reduce EU-ETS-driven electricity prices?," Energy Policy, Elsevier, vol. 35(1), pages 342-349, January.
    9. Rosen, Johannes & Tietze-Stöckinger, Ingela & Rentz, Otto, 2007. "Model-based analysis of effects from large-scale wind power production," Energy, Elsevier, vol. 32(4), pages 575-583.
    10. Alberg Østergaard, Poul, 2003. "Transmission-grid requirements with scattered and fluctuating renewable electricity-sources," Applied Energy, Elsevier, vol. 76(1-3), pages 247-255, September.
    11. Sáenz de Miera, Gonzalo & del Ri­o González, Pablo & Vizcaino, Ignacio, 2008. "Analysing the impact of renewable electricity support schemes on power prices: The case of wind electricity in Spain," Energy Policy, Elsevier, vol. 36(9), pages 3345-3359, September.
    12. Oswald, James & Raine, Mike & Ashraf-Ball, Hezlin, 2008. "Will British weather provide reliable electricity?," Energy Policy, Elsevier, vol. 36(8), pages 3202-3215, August.
    13. Luickx, Patrick J. & Delarue, Erik D. & D'haeseleer, William D., 2008. "Considerations on the backup of wind power: Operational backup," Applied Energy, Elsevier, vol. 85(9), pages 787-799, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hirth, Lion, 2013. "The market value of variable renewables," Energy Economics, Elsevier, vol. 38(C), pages 218-236.
    2. De Jonghe, Cedric & Delarue, Erik & Belmans, Ronnie & D'haeseleer, William, 2011. "Determining optimal electricity technology mix with high level of wind power penetration," Applied Energy, Elsevier, vol. 88(6), pages 2231-2238, June.
    3. Richard Green and Nicholas Vasilakos, 2012. "Storing Wind for a Rainy Day: What Kind of Electricity Does Denmark Export?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    4. Narbel, Patrick A., 2014. "Rethinking how to support intermittent renewables," Energy, Elsevier, vol. 77(C), pages 414-421.
    5. Abrell, Jan & Weigt, Hannes, 2008. "The Interaction of Emissions Trading and Renewable Energy Promotion," MPRA Paper 65658, University Library of Munich, Germany.
    6. Dillig, Marius & Jung, Manuel & Karl, Jürgen, 2016. "The impact of renewables on electricity prices in Germany – An estimation based on historic spot prices in the years 2011–2013," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 7-15.
    7. repec:dui:wpaper:1504 is not listed on IDEAS
    8. Traber, Thure & Kemfert, Claudia, 2011. "Gone with the wind? -- Electricity market prices and incentives to invest in thermal power plants under increasing wind energy supply," Energy Economics, Elsevier, vol. 33(2), pages 249-256, March.
    9. Kallabis, Thomas & Pape, Christian & Weber, Christoph, 2016. "The plunge in German electricity futures prices – Analysis using a parsimonious fundamental model," Energy Policy, Elsevier, vol. 95(C), pages 280-290.
    10. Lion Hirth, 2013. "The Market Value of Variable Renewables. The Effect of Solar and Wind Power Variability on their Relative Price," RSCAS Working Papers 2013/36, European University Institute.
    11. Ciarreta, Aitor & Espinosa, Maria Paz & Pizarro-Irizar, Cristina, 2014. "Is green energy expensive? Empirical evidence from the Spanish electricity market," Energy Policy, Elsevier, vol. 69(C), pages 205-215.
    12. Dressler, Luisa, 2016. "Support schemes for renewable electricity in the European Union: Producer strategies and competition," Energy Economics, Elsevier, vol. 60(C), pages 186-196.
    13. repec:hal:spmain:info:hdl:2441/53r60a8s3kup1vc9l564igg8g is not listed on IDEAS
    14. Vidal-Amaro, Juan José & Østergaard, Poul Alberg & Sheinbaum-Pardo, Claudia, 2015. "Optimal energy mix for transitioning from fossil fuels to renewable energy sources – The case of the Mexican electricity system," Applied Energy, Elsevier, vol. 150(C), pages 80-96.
    15. Jägemann, Cosima, 2014. "An illustrative note on the system price effect of wind and solar power - The German case," EWI Working Papers 2014-10, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    16. Liliana Gelabert & Xavier Labandeira & Pedro Linares, 2011. "Renewable Energy and Electricity Prices in Spain," Working Papers 01-2011, Economics for Energy.
    17. Krajacic, Goran & Duic, Neven & Tsikalakis, Antonis & Zoulias, Manos & Caralis, George & Panteri, Eirini & Carvalho, Maria da Graça, 2011. "Feed-in tariffs for promotion of energy storage technologies," Energy Policy, Elsevier, vol. 39(3), pages 1410-1425, March.
    18. Lund, H. & Mathiesen, B.V., 2009. "Energy system analysis of 100% renewable energy systems—The case of Denmark in years 2030 and 2050," Energy, Elsevier, vol. 34(5), pages 524-531.
    19. Hirth, Lion & Ueckerdt, Falko, 2013. "Redistribution effects of energy and climate policy: The electricity market," Energy Policy, Elsevier, vol. 62(C), pages 934-947.
    20. repec:spo:wpecon:info:hdl:2441/53r60a8s3kup1vc9l564igg8g is not listed on IDEAS
    21. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    22. Jean-Luc Gaffard & Mauro Napoletano, 2012. "Agent-based models and economic policy," Sciences Po publications info:hdl:2441/53r60a8s3ku, Sciences Po.
    23. Kaller, Alexander & Bielen, Samantha & Marneffe, Wim, 2018. "The impact of regulatory quality and corruption on residential electricity prices in the context of electricity market reforms," Energy Policy, Elsevier, vol. 123(C), pages 514-524.

    More about this item

    Keywords

    electricity; wind energy; reserve; cost saving; Germany;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:65659. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.