IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v134y2019icp727-738.html

The German incentive regulation and its practical impact on the grid integration of renewable energy systems

Author

Listed:
  • Matschoss, Patrick
  • Bayer, Benjamin
  • Thomas, Heiko
  • Marian, Adela

Abstract

This paper investigates the interplay between the German incentive regulation and renewable capacity integration. A comprehensive review of the current incentive regulation scheme and its 2016 amendment is first presented. Then, results of ten representative interviews with large-scale distribution system operators are analyzed. Firstly, all necessary grid integration measures could so far be implemented. Secondly, creating proper incentives for intelligent operating equipment to partly substitute conventional grid expansion remains a challenge. Thirdly, the new curtailment regulation of 2016 is welcome, but will not become a substitute for grid expansion as long as renewable integration rates are high. Moreover, the discussions on further improvements to the incentive regulation scheme reveal a distribution conflict between grid operators and grid users.

Suggested Citation

  • Matschoss, Patrick & Bayer, Benjamin & Thomas, Heiko & Marian, Adela, 2019. "The German incentive regulation and its practical impact on the grid integration of renewable energy systems," Renewable Energy, Elsevier, vol. 134(C), pages 727-738.
    • Handle: RePEc:eee:renene:v:134:y:2019:i:c:p:727-738
    DOI: 10.1016/j.renene.2018.10.103
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148118313090
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2018.10.103?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Kinnunen, Kaisa, 2005. "Pricing of electricity distribution: an empirical efficiency study in Finland, Norway and Sweden," Utilities Policy, Elsevier, vol. 13(1), pages 15-25, March.
    2. Balazs Egert, 2009. "Infrastructure Investment in Network Industries: The Role of Incentive Regulation and Regulatory Independence," CESifo Working Paper Series 2642, CESifo.
    3. Agrell, Per J. & Grifell-Tatjé, Emili, 2016. "A dynamic model for firm-response to non-credible incentive regulation regimes," Energy Policy, Elsevier, vol. 90(C), pages 287-299.
    4. Ropenus, Stephanie & Jacobsen, Henrik Klinge & Schröder, Sascha Thorsten, 2011. "Network regulation and support schemes – How policy interactions affect the integration of distributed generation," Renewable Energy, Elsevier, vol. 36(7), pages 1949-1956.
    5. Joskow Paul L., 2008. "Incentive Regulation and Its Application to Electricity Networks," Review of Network Economics, De Gruyter, vol. 7(4), pages 1-14, December.
    6. Cullmann, Astrid & Nieswand, Maria, 2016. "Regulation and investment incentives in electricity distribution: An empirical assessment," Energy Economics, Elsevier, vol. 57(C), pages 192-203.
    7. Bayer, Benjamin & Matschoss, Patrick & Thomas, Heiko & Marian, Adela, 2018. "The German experience with integrating photovoltaic systems into the low-voltage grids," Renewable Energy, Elsevier, vol. 119(C), pages 129-141.
    8. Carlo Cambini & Laura Rondi, 2010. "Incentive regulation and investment: evidence from European energy utilities," Journal of Regulatory Economics, Springer, vol. 38(1), pages 1-26, August.
    9. Nykamp, Stefan & Andor, Mark & Hurink, Johann L., 2012. "‘Standard’ incentive regulation hinders the integration of renewable energy generation," Energy Policy, Elsevier, vol. 47(C), pages 222-237.
    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. Poudineh, Rahmatallah & Jamasb, Tooraj, 2016. "Determinants of investment under incentive regulation: The case of the Norwegian electricity distribution networks," Energy Economics, Elsevier, vol. 53(C), pages 193-202.
    2. Anna Pechan, 2014. "Which Incentives Does Regulation Give to Adapt Network Infrastructure to Climate Change? - A German Case Study," Working Papers V-365-14, University of Oldenburg, Department of Economics, revised May 2014.
    3. Michael Hellwig & Dominik Schober & Luis Cabral, 2018. "Incentive Regulation: Evidence From German Electricity Networks," Working Papers 18-03, New York University, Leonard N. Stern School of Business, Department of Economics.
    4. Avdasheva, Svetlana & Orlova, Yulia, 2020. "Effects of long-term tariff regulation on investments under low credibility of rules: Rate-of-return and price cap in Russian electricity grids," Energy Policy, Elsevier, vol. 138(C).
    5. David P. Brown & David E. M. Sappington, 2023. "Designing Incentive Regulation in the Electricity Sector," Working Papers 2023-10, University of Alberta, Department of Economics.
    6. Cambini, Carlo & Franzi, Donata, 2013. "Independent regulatory agencies and rules harmonization for the electricity sector and renewables in the Mediterranean region," Energy Policy, Elsevier, vol. 60(C), pages 179-191.
    7. Carlo Cambini & Raffaele Congiu & Golnoush Soroush, 2020. "Regulation, Innovation, and Systems Integration: Evidence from the EU," Energies, MDPI, vol. 13(7), pages 1-18, April.
    8. Hellwig, Michael & Schober, Dominik & Cabral, Luís, 2020. "Low-powered vs high-powered incentives: Evidence from German electricity networks," International Journal of Industrial Organization, Elsevier, vol. 73(C).
    9. Simona Benedettini & Federico Pontoni, "undated". "Electricity distribution investments: no country for old rules? A critical overview of UK and Italian regulations," IEFE Working Papers 50, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    10. Cullmann, Astrid & Nieswand, Maria, 2016. "Regulation and investment incentives in electricity distribution: An empirical assessment," Energy Economics, Elsevier, vol. 57(C), pages 192-203.
    11. Meletiou, Alexis & Cambini, Carlo & Masera, Marcelo, 2018. "Regulatory and ownership determinants of unbundling regime choice for European electricity transmission utilities," Utilities Policy, Elsevier, vol. 50(C), pages 13-25.
    12. Buchmann, Marius, 2017. "Governance of data and information management in smart distribution grids: Increase efficiency by balancing coordination and competition," Utilities Policy, Elsevier, vol. 44(C), pages 63-72.
    13. repec:aen:journl:ej36-4-poudineh is not listed on IDEAS
    14. Carlo Cambini & Laura Rondi, 2011. "Independence, Investment and Political Interference: Evidence from the European Union," RSCAS Working Papers 2011/42, European University Institute.
    15. Balázs Égert, 2021. "Investment in OECD Countries: a Primer," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 63(2), pages 200-223, June.
    16. Agrell, Per J. & Brea-Solís, Humberto, 2017. "Capturing heterogeneity in electricity distribution operations: A critical review of latent class modelling," Energy Policy, Elsevier, vol. 104(C), pages 361-372.
    17. Sebastian Nick & Heike Wetzel, 2016. "The hidden cost of investment: the impact of adjustment costs on firm performance measurement and regulation," Journal of Regulatory Economics, Springer, vol. 49(1), pages 33-55, February.
    18. Saastamoinen, Antti & Kuosmanen, Timo, 2016. "Quality frontier of electricity distribution: Supply security, best practices, and underground cabling in Finland," Energy Economics, Elsevier, vol. 53(C), pages 281-292.
    19. Mirza, Faisal Mehmood & Mushtaq, Iqra, 2022. "Estimating the marginal cost of improving services quality in electricity distribution utilities of Pakistan," Energy Policy, Elsevier, vol. 167(C).
    20. Francisca Bremberger & Carlo Cambini & Klaus Gugler & Laura Rondi, 2013. "Dividend Policy in Regulated Firms," RSCAS Working Papers 2013/53, European University Institute.
    21. Rahmatallah Poudineh & Tooraj Jamasb, 2013. "Investment and Efficiency under Incentive Regulation: The Case of the Norwegian Electricity Distribution Networks," Working Papers EPRG 1306, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:eee:renene:v:134:y:2019:i:c:p:727-738. 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: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    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.