Energy Market Design and Policy
Energy market design plays a key role in the transition to a climate-neutral energy system. It is crucial for medium- and long-term investment decisions in generation and storage technologies as well as infrastructure, among others, and determines the interaction between private-sector and state-regulated players. The focus of the research area “Energy Market Design and Policy” is to analyze the impact of different market design proposals from the scientific and political debate and to provide a scientific basis for advisory activities in the context of policy consulting.
Group members
| Head of research area | ||
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| Dr. Christian Sölch | ||
Aktuelles
Due to the current dynamic overall situation in the energy sector and its particular energy policy challenges, the BMWK has asked the Expert Commission on the Energy of the Future Monitoring Process, of which Prof. Grimm is a member, to prepare an analysis on the current situation on the electricity market and on further development possibilities of the electricity market design against the background of the energy transition.
The energy crisis is forcing Germany and other EU countries to reconsider and, if necessary, adjust energy policy decisions. New perspectives envisage a rapid expansion of renewable energies in the next few years. In the short term, there are considerations in Germany to reactivate coal-fired power plants from the reserve and to revise decisions to decommission coal-fired and nuclear power plants in the coming years. This brief study analyzes the price effects for the years 2024 and 2027 to shed light on both the short-term challenges and the medium-term prospects.
Publications
2024
- Kretschmer, S. (2024). Carbon literacy – Can simple interventions help? Effect of information provision on emissions knowledge of private households. Energy Policy, 188. https://dx.doi.org/10.1016/j.enpol.2024.114060
2023
- Lang, L., Egerer, J., Grimm, V., Pfefferer, U., & Sölch, C. (2023). Mittelfristige Mobilisierung deutscher Erzeugungskapazität im europäischen Kontext. In Tagungsband 13. Internationale Energiewirtschaftstagung an der TU Wien (IEWT 2023). Wien, AT.
- Runge, P., Sölch, C., Albert, J., Wasserscheid, P., Zöttl, G., & Grimm, V. (2023). Economic comparison of electric fuels for heavy duty mobility produced at excellent global sites-a 2035 scenario. Applied Energy, 347. https://doi.org/10.1016/j.apenergy.2023.121379
2022
- Egerer, J., Grimm, V., Lang, L., Pfefferer, U., & Sölch, C. (2022). Mobilisierung von Erzeugungskapazitäten auf dem deutschen Strommarkt. Wirtschaftsdienst, 102(11), 846–854. https://dx.doi.org/10.1007/s10273-022-3310-5
- Grimm, V., Martin, A., Sölch, C., Weibelzahl, M., & Zöttl, G. (2022). Market-based Redispatch May Result in Inefficient Dispatch. Energy Journal, 43(5). https://doi.org/10.5547/01956574.43.5.csol
- Grimm, V., Sölch, C., & Zöttl, G. (2022). Emissions reduction in a second-best world: On the long-term effects of overlapping regulations. Energy Economics, 109. https://dx.doi.org/10.1016/j.eneco.2022.105829
- Kretschmer, S. (2022). Carbon literacy - can simple interventions help? Effect of information provision on emissions knowledge of private households.
- Schwab, J., Sölch, C., & Zöttl, G. (2022). Electric Vehicle Cost in 2035: The impact of market penetration and charging strategies. Energy Economics, 114. https://dx.doi.org/10.1016/j.eneco.2022.106263
2021
- Ambrosius, M., Grimm, V., Rückel, B., Sölch, C., & Zöttl, G. (2021). Data Documentation for the German Electricity Market Used for the Calibration of the GATE Model - NDP 2030 (Version 2017).
- Grimm, V., Rückel, B., Sölch, C., & Zöttl, G. (2021). The Impact of Market Design on Transmission and Generation Investment in Electricity Markets. Energy Economics, 93. https://doi.org/10.1016/j.eneco.2020.104934
2020
- Bichler, M., Grimm, V., Kretschmer, S., & Sutterer, P. (2020). Market design for renewable energy auctions: An analysis of alternative auction formats. Energy Economics, 92. https://doi.org/10.1016/j.eneco.2020.104904
- Grimm, V., Grübel, J., Rückel, B., Sölch, C., & Zöttl, G. (2020). Storage investment and network expansion in distribution networks: The impact of regulatory frameworks. Applied Energy, 262. https://doi.org/10.1016/j.apenergy.2019.114017
- Grimm, V., Kretschmer, S., & Mehl, S. (2020). Green innovations: The organizational setup of pilot projects and its influence on consumer perceptions. Energy Policy, 142. https://doi.org/10.1016/j.enpol.2020.111474
2019
- Ambrosius, M., Grimm, V., Rückel, B., Sölch, C., & Zöttl, G. (2019). Data Documentation for the German Electricity Market used for the calibration of the GATE Model - NDP 2025 (Version 2015).
- Benndorf, V., Rau, H.A., & Sölch, C. (2019). Gender Differences in Motivational Crowding Out of Work Performance. Economic Inquiry, 57(1), 206 - 226. https://doi.org/10.1111/ecin.12718
- Benndorf, V., Rau, H.A., & Sölch, C. (2019). Minimizing Learning in Repeated Real-Effort Tasks. Journal of Behavioral and Experimental Finance, 22, 239 - 248. https://doi.org/10.1016/j.jbef.2019.04.002
- Grimm, V., Rückel, B., Sölch, C., & Zöttl, G. (2019). Regionally Differentiated Network Fees to Affect Incentives for Generation Investment. Energy, 177, 487-502. https://doi.org/10.1016/j.energy.2019.04.035
- Runge, P., Sölch, C., Albert, J., Wasserscheid, P., Zöttl, G., & Grimm, V. (2019). Economic comparison of different electric fuels for energy scenarios in 2035. Applied Energy, 233-234, 1078 - 1093. https://doi.org/10.1016/j.apenergy.2018.10.023
- Sölch, C. (2019). The impact of market design on transmission and generation investments in liberalized electricity markets with zonal pricing (Dissertation).
2018
- Ambrosius, M., Grimm, V., Sölch, C., & Zöttl, G. (2018). Investment Incentives For Flexible Demand Options Under Different Market Designs. Energy Policy, 118, 372 - 389. https://doi.org/10.1016/j.enpol.2018.01.059
- Grimm, V., Kretschmer, S., & Mehl, S. (2018). Home energy storage: A characterization of potential adopters in Germany.
2017
- German, R., Götz, K., Grimm, V., Kufner, A., Leepa, C., Luther, M.,... Veerashekar, K. (2017). Virtueller Großspeicher zur Erbringung von Primärregelleistung – Pilotprojekt SWARM. In Tagungsband OTTI-Konferenz „Zukünftige Stromnetze für Erneuerbare Energien“. Berlin, DE.
- Grimm, V., Ambrosius, M., Rückel, B., Sölch, C., & Zöttl, G. (2017). Modellierung von liberalisierten Strommärkten – Herausforderungen und Lösungen. Perspektiven der Wirtschaftspolitik, 18(1), 2 - 31. https://doi.org/10.1515/pwp-2017-0001
- Grimm, V., Zöttl, G., & Sölch, C. (2017). Regionalkomponenten bei der EE-Vergütung. Gutachten im Auftrag der Monopolkommission in Vorbereitung des 77. Sondergutachtens "Energie 2017" der Monopolkommission.
2016
- Ambrosius, M., Grimm, V., Sölch, C., & Zöttl, G. (2016). Investment incentives for flexible energy consumption in the industry. In IEEE (Eds.), 2016 13th International Conference on the European Energy Market (EEM) (pp. 1-5). Porto, PT.
- Bogenrieder, J., Hosch, P., Sölch, C., & Brabec, C. (2016). Impact of a large-scale market integration on the orientation of photovoltaic modules. In IEEE (Eds.), 2016 13th International Conference on the European Energy Market (EEM) (pp. 1 - 6). Porto, PT: IEEE Computer Society.
- Grimm, V., Rückel, B., Sölch, C., & Zöttl, G. (2016). Zur Reduktion des Netzausbaubedarfs durch Redispatch und effizientes Engpassmanagement: Eine modellbasierte Abschätzung. List Forum für Wirtschafts- und Finanzpolitik, 41(4), 465-498. https://doi.org/10.1007/s41025-016-0027-5
- Grimm, V., Zöttl, G., Ambrosius, M., Rückel, B., & Sölch, C. (2016). Dezentralität und zellulare Optimierung - Auswirkungen auf den Netzausbaubedarf. (Gutachten im Auftrag der N-Ergie AG, gemeinsam mit der Prognos AG).
- Leepa, C., Kufner, A., Mehl, S., Steber, D., Veerashekar, K., Sigert, I.,... Luther, M. (2016). SWARM – Successful Provision of Frequency Containment Reserve with Distibuted Energy Storage Systems. In EUROSOLAR and the World Council for Renewable Energy (WCRE) (Eds.), Conference Presentations and Materials of the "10th International Renewable Energy Storage Conference" (IRES 2016), Düsseldorf/Germany, 15-17 March 2015. Düsseldorf, DE.
2015
- Grimm, V., Zöttl, G., Rückel, B., & Sölch, C. (2015). Regionale Preiskomponenten im Strommarkt. Gutachten im Auftrag der Monopolkommission in Vorbereitung des 71. Sondergutachtens "Energie 2015" der Monopolkommission.
Projects
Commissions
- Expert Commission on the Energy of the Future Monitoring Process
The Federal Government’s monitoring process “Energy of the Future” has been set up to track the energy transition on a continuous basis: how far have we come with the energy transition? What measures have already been implemented? What are the effects? Will we achieve our goals, or do we need to do some fine-tuning? The central task of the monitoring process is to analyse the reams of statistical information on energy that have been collected and then condense it and make it easy to understand. This involves an assessment of measures that have already been taken and work to pinpoint areas in which further efforts need to be made. In this way, each annual report provides an overview of the energy transition and the stage that it is at this point in time. We need to know where we have got to before we can decide what steps to take next. The Federal Ministry for Economic Affairs and Energy has been appointed lead ministry for the monitoring process for the energy transition. Also involved in the process is an independent commission of four renowned energy experts, who provide advice for the drafting process and a scientific opinion on the Monitoring Report.