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Economic principles are at the heart of key policies addressing or affecting energy efficiency. Minimum energy performance standards are typically based on an economic efficiency principle, where the ambition of the minimum requirements depends on economic costs and benefits. Examples from different governance levels include the least-life-cycle-costs approach in the EU Ecodesign Directive, the cost-optimality approach in the EU Energy Performance of Buildings Directive and the German building codes, where the requirement for micro-level cost efficiency acts as barrier for setting more ambitious standards. Also, some public procurement approaches are based on economic principles, where requirements to include life-cycle costs and/or external environmental costs can provide a driver for the uptake of energy efficiency technologies. In view of the fundamental role of energy efficiency policy for reaching climate targets, this article addresses the question how innovative approaches to use economic principles in policy formulation can foster the deployment of energy efficiency solutions. To this end, we analyse different approaches for using economic principles in minimum energy performance standards and in public procurement processes, including the recently introduced requirement to consider the costs of climate action in Federal procurement processes specified in the German Federal Climate Change Act. We derive recommendations on how to use economic principles in policy formulation as a driver rather than a barrier for the deployment of energy efficiency solutions.
11.10.2021 Publikationen Energie & Klimaschutz Bücher & Fachartikel

The current energy systems are undergoing fundamental changes driven by the climate crisis, unfolding digitalisation and increasing calls for a more active citizens‘ engagement. The impact of these ongoing trends on the future energy system, however, is far from straightforward. Although there is an increasing shift towards a decentralisation, it is not clear yet how exactly this new decentralised configuration will unfold and materialise. In this article we explore the rationales behind current trends towards a more decentralised electricity system. Given the developments in the electricity system, our study centres on emerging initiatives led by citizens and their values. Theoretically, we first mobilise the notion of socio-technical system as constituted and reproduced by actors, institutions, and technology, operating based on certain shared principles. We use this lens to describe the past and current energy system organisation. Secondly, based on two dimensions of value orientation and steering directio
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We present results of two model based scenario analysis focussing on the future German power sector which is characterized by a rising share of renewable energies and an associated higher demand for flexibility. Case study 1 is based on a general comparison between a decentrally and a centrally orientated electricity system. The research question of case study 2 is whether flexibility should be centrally balanced by a national market-based dispatch or dispatched in a decentralized manner within regional balancing areas. The combined results of these two case studies offer the possibility to show the differences between a decentralized and a centralized electricity system regarding the dispatch of generation, storage and flexibility options as well as resulting effects on variable costs, CO2 emissions, grid usage and RE integration. Decentralization as control strategy leads to higher variable generation costs due to more expensive generation and less efficient flexibility options that come into the market, while the majority of demand and supply still needs a transmission grid for balancing. Koch M. et al. (2017) Dispatch of Flexibility Options, Grid Infrastructure and Integration of Renewable Energies Within a Decentralized Electricity System. In: Bertsch V., Fichtner W., Heuveline V., Leibfried T. (eds) Advances in Energy System Optimization. Trends in Mathematics. Birkhäuser, Cham. https://doi.org/10.1007/978-3-319-51795-7_5
Publikationen Energiewende und Klimapolitik Energie & Klimaschutz Bücher

This article compares the drivers and barriers of two sustainability transformations in Germany: the energy transformation (“Energiewende”) andt he attempted transformation towards organic agriculture which has, so far, been less successful. It is based on two case studies rooted in transformation research. While there is rapidly growing literature on energy, there are far fewer analyses of agricultural transformations. Moreover, single case studies dominate. The cross-case comparison presented in this article is a step towards filling this gap. Particularly in their initial stages, the two transformation processes shared similarities: both systems had been coming under pressure due to environmental crises, grassroots movements and niche developments of sustainable alternatives. However, changes to the regulatory system framework made investments in renewable energy more attractive than in organic agriculture, where the profitability of the transformation is still reduced by significant subsidies for conventional agriculture. Moreover, the energy transformation has benefitted from technological improvements and falling costs, an early coalition of supporters, including business actors, and more recently from abroader societal and political consensus. ©2019 D. A. Heyen, F.Wolff; licensee oekom verlag. This Open Access article is published under the terms of the Creative Commons Attribution License CCBY4.0 (http://creativecommons.org/licenses/by/4.0). https://doi.org/10.14512/gaia.28.S1.9 Submitted December 19, 2018; revised version accepted July 12, 2019.
of sustainability transformations 22.08.2019 Umweltrecht & Governance Bücher

A variety of models have emerged in the field of energy system analysis to answer a wide range of research questions centred around a sustainable future for the energy sector. Even models designed to address similar issues often have a different focus or modelling approach. Thus, model experiments are a vital tool to provide an overview of the range of models and enable decision-makers to make meaningful model choices. Such comparisons are executed based on a harmonised data set to ensure a high degree of comparability. In the MODEX project cluster, six model experiments, including 40 energy system models, were conducted, and efforts were made to harmonise the input data within the individual comparison and beyond them in the consortium. The experiences and findings of the consortium on how data harmonisation could be performed are presented in this paper. In particular, the focus lies on data transparency to ensure a high degree of reproducibility. A key finding is that while model heterogeneity complicates harmonisation, an early focus on data research and scenario design promotes the creation of a common data set. The metadata collection can provide a significant advantage for the use of model experiment results by external scientists and the data acquisition process itself because of the predefined machine-readable and standardised format.
Publikationen Energiewende und Klimapolitik Energie & Klimaschutz Bücher

Cap and trade systems are considered to be one of the most cost-efficient options to achieve emission reduction targets. This paper extends the literature on the evaluation of emissions trading systems (ETS) by providing insights into the methodology of the ex-post evaluation of cost-efficiency. Based on data from the second trading period of the EU ETS, this paper compares different settings for ex-post cost-efficiency analyses. A highly disaggregated base scenario reveals average cost savings from trade of about 865 million Euro p.a., an efficiency gain of 47% compared to the alternative policy scenario without trade. Sensitivity scenarios indicate lower efficiency gains in cases with higher sectoral and regional aggregation emphasising the importance of intra-industry and inter-country trade. Furthermore, assumptions regarding the abatement requirements under the alternative policy play a key role, along with the choice of marginal abatement cost curves. In line with ex-ante results from the literature, the backward looking empirical results of this paper uniformly support the theoretical cost-efficiency of the EU ETS. Published in: “Economics of Energy & Environmental Policy” Vol. 8, No. 1.
Publikationen Energiewende und Klimapolitik Energie & Klimaschutz Bücher

Social acceptance is increasingly becoming a limiting factor in implementing the energy transition in Germany. From today’s perspective, the expansion of wind energy and future transmission grids is only somewhat a technical or economic challenge rather than a social one. Since political decisions on the energy system transformation are often derived from findings of energy system modeling, it seems necessary to increasingly integrate the effects of socio-ecological aspects, such as acceptance issues in energy models. In this paper, an approach is introduced to address effects of social acceptance in energy system models by comparing the influence of different distribution scenarios of wind energy in Germany on the expansion need for future transmission lines. The results show that a socio-ecologic distribution of onshore wind installations according to a balanced burden of the German society does not reduce the grid expansion need significantly compared to an economic siting. An actual reduction of planned transmission grids could just be achieved by a more decentral scenario, including decentral market design. The sensitivity of regionalization is an opportunity to consider local acceptance issues within energy system models and should move more into focus inside the procedure of the current grid development process in Germany.
and the Transmission Grid in Germany 07.08.2021 Energie & Klimaschutz Bücher

While it is widely acknowledged that carbon pricing plays an important role in driving the transition towards a low-carbon energy system, its interaction with complementary instruments is discussed controversially. The analysis of combining carbon pricing with complementary policies has been mostly focused on the electricity sector, while the role of carbon pricing in the buildings sector has received only minor interest. In view of the newly introduced carbon pricing scheme for the buildings and transport sector in Germany, we analyze the interactions between the carbon pricing scheme with the existing policy instruments and assess the consistency of the policy mix for decarbonizing the buildings sector. Our analysis finds that the introduction of carbon pricing has a reinforcing effect on the instrument mix and adds to the consistency of the policy mix. The results highlight the importance of complementary policies in order to achieve deep decarbonization in the buildings sector. We conclude that carbon pricing, preferably implemented as a tax with a predictable and increasing price level, needs to be supplemented with a powerful mix of complementary measures.
for Decarbonizing Buildings in Germany 01.11.2021 Energie & Klimaschutz Bücher

The Global Stocktake (GST) takes a central role within the architecture of the Paris Agreement, with many hoping that it will become a catalyst for increased mitigation ambition. This paper outlines four governance functions for an ideal GST: pacemaker, ensurer of accountability, driver of ambition and provider of guidance and signal. The GST can set the pace of progress by stimulating and synchronizing policy processes across governance levels. It can ensure accountability of Parties through transparency and public information sharing. Ambition can be enhanced through benchmarks for action and transformative learning. By reiterating and refining the long term visions, it can echo and amplify the guidance and signal provided by the Paris Agreement. The paper further outlines preconditions for the effective performance of these functions. Process-related conditions include: a public appraisal of inputs; a facilitative format that can develop specific recommendations; high-level endorsement to amplify the message and effectively inform national climate policy agendas; and an appropriate schedule, especially with respect to the transparency framework. Underlying information provided by Parties complemented with other (scientific) sources needs to enable benchmark setting for collective climate action, to allow for transparent assessments of the state of emissions and progress of a low-carbon transformation. The information also needs to be politically relevant and concrete enough to trigger enhancement of ambition. We conclude that meeting these conditions would enable an ideal GST and maximize its catalytic effect.
elements for an effective Global Stocktake 13.06.2019 Energie & Klimaschutz Bücher

In order to achieve a high renewable share in the electricity system, a significant expansion of cross-border exchange capacities is planned. Historically, the actual expansion of interconnector capacities has significantly lagged behind the planned expansion. This study examines the impact that such continued delays would have when compared to a strong interconnector expansion in an ambitious energy transition scenario. For this purpose, scenarios for the years 2030, 2040, and 2050 are examined using the electricity market model PowerFlex EU. The analysis reveals that both CO2 emissions and variable costs of electricity generation increase if interconnector expansion is delayed. This effect is most significant in the scenario year 2050, where lower connectivity leads roughly to a doubling of both CO2 emissions and variable costs of electricity generation. This increase results from a lower level of European electricity trading, a curtailment of electricity from a renewable energy source (RES-E), and a corresponding higher level of conventional electricity generation. Most notably, in Southern and Central Europe, less interconnection leads to higher use of natural gas power plants since less renewable electricity from Northern Europe can be integrated into the European grid.
High RES-E European Electricity System 12.08.2019 Energie & Klimaschutz Bücher