Alexander Zerrahn

German Institute for Economic Research | DIW Berlin

We analyze the macroeconomic substitution between clean and dirty inputs through the lens of production isoquants derived from a numerical bottom-up model of electricity production. This approach also allows to study high shares of clean energy not observable today and isolate mechanisms that impact the elasticity of substitution between clean and...

Model-based scenario analyses of future energy systems often come to deviating results and conclusions when different models are used. This may be caused by heterogeneous input data and by inherent differences in model formulations. The representation of technologies for the conversion, storage, use, and transport of energy is usually stylized in c...

The transition towards decarbonized energy systems requires the expansion of renewable and flexibility technologies in power sectors. Many powerful tools exist to find optimal capacity expansion. In a stylized comparison of six models, we evaluate the capacity expansion results of basic power sector technologies. The technologies under investigatio...

The transition towards decarbonized energy systems requires the expansion of renewable and flexibility technologies in power sectors. In a model comparison, we examine the optimal expansion of such technologies with six capacity expansion power system models. The technologies under investigation include base- and peak-load power plants, electricity...

Motivation und zentrale Fragestellung Um Strategien für die zukünftige Entwicklung von Energieversorgungssystemen zu untersuchen, wurden zuletzt zahlreiche Energiesystemmodelle entwickelt [1], die Technologien zur Umwandlung, Speicherung, Nutzung und zum Transport von Energie stark abstrahiert abbilden. Modellbasierte Szenariostudien kommen in der...

Green hydrogen can help to decarbonize parts of the transportation sector, but its power sector interactions are not well understood so far. It may contribute to integrating variable renewable energy sources if production is sufficiently flexible in time. Using an open-source co-optimization model of the power sector and four options for supplying...

There is substantial research interest in how future fleets of battery-electric vehicles will interact with the power sector. Various types of energy models are used for respective analyses. They depend on meaningful input parameters, in particular time series of vehicle mobility, driving electricity consumption, grid availability, or grid electric...

We analyze how tariff design incentivizes households to invest in residential photovoltaic and battery storage systems, and explore selected electricity sector effects. To this end, we develop an open-source electricity sector model that explicitly features prosumage agents and apply it to German 2030 scenarios. Results show that lower feed-in tari...

We develop novel quantitative techno-economic evaluation criteria for power flow allocation schemes. Such schemes assign which nodes are responsible for which proportion of power flows on a line in a meshed electricity transmission network. As this allocation is, as such, indeterminate, the literature has proposed a number of dedicated schemes. To...

DIETER is an open-source power sector model designed to analyze future settings with very high shares of variable renewable energy sources. It minimizes overall system costs, including fixed and variable costs of various generation, storage and sector coupling options. Here we introduce DIETERpy that builds on the existing model version, written in...

We fit CES and VES production functions to data from a numerical bottom-up optimization model of electricity supply with clean and dirty inputs. This approach allows for studying high shares of clean energy not observable today and for isolating mechanisms that impact the elasticity of substitution between clean and dirty energy. Central results sh...

Using electricity for heating can contribute to decarbonization and provide flexibility to integrate variable renewable energy. We analyze the case of electric storage heaters in German 2030 scenarios with an open-source electricity sector model. We find that flexible electric heaters generally increase the use of generation technologies with low v...

Please, cite the peer-reviewed version: "10.1038/s41597-021-00932-9" ............... .............. ...................... .................... ................... ................... .............. There is substantial research interest in how future fleets of battery-electric vehicles will interact with the power sector. To this end, various type...

Green hydrogen can decarbonize transportation, but also help to integrate variable renewable energy sources if its production is sufficiently flexible in time. Using an open-source co-optimization model of the power sector and four supply chains for hydrogen at filling stations, we find a trade-off between energy efficiency and temporal flexibility...

We analyze how tariff design incentivizes households to invest in residential photovoltaic and battery systems, and explore selected power sector effects. To this end, we apply an open-source power system model featuring prosumage agents to German 2030 scenarios. Results show that lower feed-in tariffs substantially reduce investments in photovolta...

Decentral self-consumption of renewable electricity has gained relevance in power markets around the world, driven by decreasing technology costs and favourable regulatory conditions. In this chapter, we adopt an economic perspective on the potential role of “prosumage” of renewable electricity for the low-carbon energy transition. We extend the co...

The use of renewable energy sources is a major strategy to mitigate climate change. Yet Sinn (2017) argues that excessive electrical storage requirements could limit the further expansion of variable wind and solar energy. We question, and alter, strong implicit assumptions of Sinn's approach and find that storage needs are considerably lower, up t...

A flexible coupling of power and heat sectors can contribute to both renewable energy integration and decarbonization. We present a literature review of model-based analyses in this field, focusing on residential heating. We compare geographical and temporal research scopes and identify state-of-the-art analytical model formulations, particularly c...

We use the model DIETER, introduced in a companion paper, to analyze the role of power storage in systems with high shares of variable renewable energy sources. The model captures multiple system values of power storage related to arbitrage, capacity, and reserve provision. We apply the model to a greenfield setting that is loosely calibrated to th...

Constrained transmission capacity in electricity networks may give generators the possibility to game the market by specifically causing congestion and thereby appropriating excessive rents. Investment in network capacity can ameliorate such behavior by reducing the potential for strategic behavior. However, modeling Nash equilibria between generat...

This paper provides a literature review on wind power and externalities from multiple perspectives. Specifically, the economic rationale behind world-wide wind power deployment is to mitigate negative externalities of conventional electricity technologies, notably emissions from fossil fuels. However, wind power entails externalities itself. Wind t...

The purpose of this article is twofold. First, we review model-based analyses that explore the role of power storage in energy systems with high shares of variable renewables. Second, we introduce a new model that is specifically designed for exploring long-term storage requirements. The literature survey focuses on recent contributions in the peer...

Throughout the world, governments foster the deployment of wind power to mitigate negative externalities of conventional electricity generation, notably CO2 emissions. Wind turbines, however, are not free of externalities themselves, particularly interference with landscape aesthetics. We quantify these negative externalities using the life satisfa...

We examine the role of prosumage of solar electricity, i.e. PV self-generation combined with distributed storage, in the context of the low-carbon energy transformation. First, we devise a qualitative account of arguments in favor of and against prosumage. Second, we give an overview of prosumage in Germany. Prosumage will likely gain momentum as s...

Throughout the world, governments foster the deployment of wind power to mitigate negative externalities of conventional technologies, notably CO2 emissions. Wind turbines, however, are not free of externalities themselves, particularly interference with landscape aesthetics. We quantify the negative externalities associated with the presence of wi...

The German government has set ambitious goals for both the expansion of renewable energy supply and electromobility. According to its Energiewende policy, electricity supply from fluctuating renewables is supposed to further increase considerably. This will tend to require a greater provision of balancing reserves. At the same time, supply from con...

Two developments in European electricity markets are eminent: the large-scale deployment of renewable resources and the closer interaction across borders. Both developments entail great potentials for efficiency gains, and imply challenges of integration. This dissertation contributes to the economic understanding of both integration challenges. To...

We employ a detailed two-stage model to simulate the operation of the Central Eastern European electricity market and network. Implementing different cases of coordination in congestion management between national transmission system operators, numerical results show the beneficial impact of closer cooperation. Specific steps comprise the sharing o...

This article analyzes the coordination of congestion management in the electricity grid and identifies the benefits from closer cooperation among Transmission System Operators. Mimicking the German situation with four Transmission System Operators in charge of relieving grid congestion, in particular by redispatch of power plants, we set up a model...

DSM (demand-side management) merits increased attention by power system modelers. Numerical models should incorporate DSM constraints in a complete and consistent way. Otherwise, flawed DSM patterns and distorted conclusions on the system benefits of demand-side management are inevitable. Building on a model formulation put forward by Göransson et...

We develop a dispatch and investment model to study the role of power storage and other flexibility options in a greenfield setting with high shares of renewables. The model captures multiple system values of power storage related to arbitrage, dispatchable capacity, and reserves. In a baseline scenario, we find that power storage requirements rema...

Lack of transmission capacity hampers the integration of the European electricity market, and thereby precludes reaping the full benefits of competition. We investigate the extent to which transmission grid expansion promotes competition, efficiency and welfare. This work proposes a three-stage model for grid investment: a benevolent planner decide...

The management of congestion within the German electricity transmission network has become more important during the last years. This emerging relevance is caused by the increase of renewable generation and the partial phaseout of nuclear power plants. Both developments yield a change in the transmission flow pattern and thus the need for congestio...