Regionally Differentiated Network Fees to Affect Incentives for Generation Investment

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Details zur Publikation

Autor(en): Grimm V, Rückel B, Sölch C, Zöttl G
Jahr der Veröffentlichung: 2019
Sprache: Englisch


Abstract

In this paper we propose an equilibrium model that allows to analyze subsidization schemes to affect locational choices for generation investment in electricity markets. Our framework takes into account generation investment decided by private investors and redispatch as well as network expansion decided by a regulated transmission system operator. In order to take into account the different objectives and decision variables of those agents, our approach uses a bi-level structure. We focus on the case of regionally differentiated network fees which have to be paid by generators (a so called g-component). The resulting investment and production decisions are compared to the outcome of an equilibrium model in the absence of such regionally differentiated investment incentives and to an overall optimal (first-best) benchmark. To illustrate possible economic effects, we calibrate our framework with data from the German electricity market. Our results reveal that while regionally differentiated network fees do have a significant impact on locational choice of generation capacities, we do not find significant effects on either welfare or network expansion.


FAU-Autoren / FAU-Herausgeber

Grimm, Veronika Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie
Rückel, Bastian
Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie
Sölch, Christian
Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie
Zöttl, Gregor Prof. Dr.
Professur für Volkswirtschaftslehre


Zusätzliche Organisationseinheit(en)
Energie-Campus Nürnberg (EnCN)


Zitierweisen

APA:
Grimm, V., Rückel, B., Sölch, C., & Zöttl, G. (2017). Regionally differentiated network fees to provide proper incentives for generation investment.

MLA:
Grimm, Veronika, et al. Regionally differentiated network fees to provide proper incentives for generation investment. 2017.

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Zuletzt aktualisiert 2019-24-01 um 16:24