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A welfare analysis of electricity transmission planning in Germany

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  • Kemfert, Claudia
  • Kunz, Friedrich
  • Rosellón, Juan

Abstract

We analyze the electricity transmission planning process in Germany (Netzentwicklungsplan), which separates transmission expansion decisions from generation dispatch. We employ an economic modeling approach to analyze two different network planning settings. In the first setting, there is no trade-off between transmission network development and generation dispatch, as is currently the case in Germany. A second setting alternatively allows for such a trade-off, and thus represents a welfare superior way of transmission network planning. Applications with the two model variants are carried out for the German electricity system in 2035. The results illustrate overinvestment in transmission capacity and decreased welfare associated with the Netzentwicklungsplan.

Suggested Citation

  • Kemfert, Claudia & Kunz, Friedrich & Rosellón, Juan, 2016. "A welfare analysis of electricity transmission planning in Germany," Energy Policy, Elsevier, vol. 94(C), pages 446-452.
    • Handle: RePEc:eee:enepol:v:94:y:2016:i:c:p:446-452
    DOI: 10.1016/j.enpol.2016.04.011
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    Cited by:

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    6. Maria Dicorato & Gioacchino Tricarico & Giuseppe Forte & Francesca Marasciuolo, 2021. "Technical Indicators for the Comparison of Power Network Development in Scenario Evaluations," Energies, MDPI, vol. 14(14), pages 1-25, July.
    7. Claudia Kemfert & Clemens Gerbaulet & Christian von Hirschhausen, 2016. "Stromnetze und Speichertechnologien für die Energiewende - eine Analyse mit Bezug zur Diskussion des EEG 2016: Gutachten im Auftrag der Hermann-Scheer-Stiftung," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, edition 0, volume 112, number pbk112, January.
    8. Zenón, Eric & Rosellón, Juan, 2017. "Optimal transmission planning under the Mexican new electricity market," Energy Policy, Elsevier, vol. 104(C), pages 349-360.
    9. Ambrosius, M. & Egerer, J. & Grimm, V. & Weijde, A.H. van der, 2020. "Uncertain bidding zone configurations: The role of expectations for transmission and generation capacity expansion," European Journal of Operational Research, Elsevier, vol. 285(1), pages 343-359.
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    11. Staudt, Philipp & Oren, Shmuel S., 2021. "Merchant transmission in single-price electricity markets with cost-based redispatch," Energy Economics, Elsevier, vol. 104(C).
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    13. Ambrosius, Mirjam & Grimm, Veronika & Kleinert, Thomas & Liers, Frauke & Schmidt, Martin & Zöttl, Gregor, 2020. "Endogenous price zones and investment incentives in electricity markets: An application of multilevel optimization with graph partitioning," Energy Economics, Elsevier, vol. 92(C).
    14. Costa-Campi, Maria Teresa & Davi-Arderius, Daniel & Trujillo-Baute, Elisa, 2020. "Locational impact and network costs of energy transition: Introducing geographical price signals for new renewable capacity," Energy Policy, Elsevier, vol. 142(C).
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    More about this item

    Keywords

    Transmission planning; Nodal prices; Congestion management; Electricity; Germany;
    All these keywords.

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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