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


  • 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.

Suggested Citation

  • Weigt, Hannes, 2009. "Germany's wind energy: The potential for fossil capacity replacement and cost saving," Applied Energy, Elsevier, vol. 86(10), pages 1857-1863, October.
  • Handle: RePEc:eee:appene:v:86:y:2009:i:10:p:1857-1863

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    References listed on IDEAS

    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.
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    More about this item


    L94 L51 D61 Electricity Wind energy Reserve Cost saving Germany;

    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


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