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Regional diversity in the costs of electricity outages: Results for German counties

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  • Piaszeck, Simon
  • Wenzel, Lars
  • Wolf, André

Abstract

The aim of this study is to quantify the macroeconomic costs resulting from a one hour power outage at the level of German counties. This is done by combining public data from various sources based on a well-established methodology, which both accounts for production losses of firms and losses in well-being of consumers. As a main result, we identify a North-South divide in the vulnerability of German counties, with counties in southern Germany tending to face larger losses. At the same time, considerable heterogeneity can also be found in small-scale comparisons, confirming the need for a spatially disaggregated analysis. We discuss the implications of our results for the debate on network expansion in Germany, suggesting that a stronger focus on outage costs could represent an important step towards a real cost-benefit analysis of expansion projects.

Suggested Citation

  • Piaszeck, Simon & Wenzel, Lars & Wolf, André, 2013. "Regional diversity in the costs of electricity outages: Results for German counties," HWWI Research Papers 142, Hamburg Institute of International Economics (HWWI).
  • Handle: RePEc:zbw:hwwirp:142
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    References listed on IDEAS

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    Cited by:

    1. Poppen, Silvia, 2014. "Auswirkungen dezentraler Erzeugungsanlagen auf das Stromversorgungssystem: Ausgestaltungsmöglichkeiten der Bereitstellung neuer Erzeugungsanlagen," Arbeitspapiere 146, University of Münster, Institute for Cooperatives.
    2. Frondel, Manuel & Sommer, Stephan, 2017. "Der Wert von Versorgungssicherheit mit Strom: Evidenz für deutsche Haushalte," RWI Materialien 115, RWI - Leibniz-Institut für Wirtschaftsforschung.

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