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Germany's wind energy: The potential for fossil capacity replacement and cost saving

Listed author(s):
  • Weigt, Hannes

Wind energy has become the major renewable energy source in Germany with an installed capacity of more than 20Â GW and an annual output of about 40Â TWÂ h 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 and exceeds the subsidies.

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Article provided by Elsevier in its journal Applied Energy.

Volume (Year): 86 (2009)
Issue (Month): 10 (October)
Pages: 1857-1863

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Handle: RePEc:eee:appene:v:86:y:2009:i:10:p:1857-1863
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  1. 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.
  2. 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.
  3. 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).
  4. 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.
  5. 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.
  6. 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.
  7. Lund, Henrik, 2005. "Large-scale integration of wind power into different energy systems," Energy, Elsevier, vol. 30(13), pages 2402-2412.
  8. Oswald, James & Raine, Mike & Ashraf-Ball, Hezlin, 2008. "Will British weather provide reliable electricity?," Energy Policy, Elsevier, vol. 36(8), pages 3202-3215, August.
  9. 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).
  10. 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.
  11. 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.
  12. 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.
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