Hannes Weigt

Hannes Weigt
University of Basel | UNIBAS · Abteilung Umwelt- und Energieökonomie

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67
Publications
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1,373
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Publications

Publications (67)
Article
Full-text available
Low electricity prices put economic pressure on hydropower companies. A more flexible water fee design can counteract this pressure and support hydropower companies during times when market revenues are low. However, this comes at the cost of lower revenues for resource owners. Using a sample of cost data for 62 companies and revenue data derived f...
Article
Full-text available
The global energy system changes towards renewables-dominated and liberalized markets. This requires making novel trade-offs between the profitable development of hydropower and its environmental effects on the natural flow regime. Here, we used a pristine river as a model for how these future changes will affect the natural flow regime and identif...
Article
The addition of stochastic renewable resources within modern electricity markets creates a need for more flexible generation assets and for appropriate mechanisms to ensure capacity adequacy. To assess both of these issues, more cross-platform analysis is needed that can evaluate short-term reliability concerns, medium-term dispatch and price conce...
Article
In this paper we argue, that the interaction of energy policy regulations in the European electricity sector may be described by the slow-fast class of dynamical systems. Such systems may exhibit drastic changes in their dynamics known as bifurcations; one important being the so called blue sky catastrophe. Once reaching such a state, the slow syst...
Article
Full-text available
Hydropower represents an important pillar of electricity systems in many countries. It not only plays an important role in mitigating climate change, but is also subject to climate-change impacts. In this paper, we use the Swiss electricity market model Swissmod to study the effects of changes in water availability due to climate change on Swiss hy...
Article
In this paper we argue, that the interaction of energy policy regulations in the European electricity sector may be described by the slow-fast class of dynamical systems. Such systems may exhibit drastic changes in their dynamics known as bifurcations; one important being the so called blue sky catastrophe. Once reaching such a state, the slow syst...
Article
Full-text available
Hydropower reservoirs play an increasingly important role for the global electricity supply. Reservoirs are anthropogenically-dominated ecosystems because hydropower operations induce artificial water level fluctuations (WLF) that exceed natural fluctuations in frequency and amplitude. These WLF have detrimental ecological effects, which can be qua...
Article
Reducing energy demand and increasing energy efficiency are two major objectives that numerous national and international programs, such as the EU 20-20-20 targets, seek to achieve in the ongoing transformation of energy systems. Despite the predominately socio-economic nature of energy demand, such interdisciplinary viewpoints - albeit on the rise...
Technical Report
Full-text available
Swiss Hydropower (HP) is currently facing a wide range of challenges that have initiated a debate about future prospects and its role within the envisioned energy transition. Building on this debate, this paper provides an overview of the status and prospects of Swiss HP by identifying and evaluating the different drivers and uncertainties that Swi...
Article
Full-text available
Energy models play an increasing role in the ongoing energy transition processes either as tools for forecasting potential developments or for assessments of policy and market design options. In recent years these models have increased in scope and scale and provide a reasonable representation of the energy supply side, technological aspects and ge...
Conference Paper
The ongoing energy transition towards large shares of renewable generation poses challenges for hydro power producers. We revisit the problem of optimising the operation of hydro power plants using mathematical modelling, but utilising computer science concepts in the design of the models and configuration of these models. In particular we use a co...
Article
Full-text available
Water level fluctuations in lakes lead to shoreline displacement. The seasonality of flooding or beaching of the littoral area affects nutrient cycling, redox gradients in sediments, and life cycles of aquatic organisms. Despite the ecological importance of water level fluctuations, we still lack a method that assesses water levels in the context o...
Article
In this paper we analyze the effects of the German nuclear phase out, focusing on the seven nuclear power plants affected by the March 2011 moratorium, and continuing through the final phase out of the last plant in 2022. We provide an ex-post assessment of model analyses on the impact of the nuclear moratorium presented by the modelling community,...
Article
Natural gas plays an important role in the future development of electricity markets as it is the least emission intensive fossil generation option while additionally providing the needed flexibility in plant operation to deal with intermittent renewable generation. As both the electricity and the natural gas market rely on networks, congestion on...
Article
Reducing energy demand and increasing energy efficiency are seen as major elements of the ongoing transformation of energy systems in multiple national and international programs like the EU 20-20-20 targets. Despite the predominately socio-economic nature of energy demand such interdisciplinary viewpoints – albeit on the rise – are still the minor...
Article
The interdependence of electricity and natural gas is becoming a major energy policy and regulatory issue in all jurisdictions around the world. The increased role of gas fired plants in renewable-based electricity markets and the dependence on gas imports make this issue particular striking for the European energy market. In this paper we provide...
Article
In this paper, we present a large-scale spatial model of the European electricity market including both generation and the physical transmission network (DC Load Flow approach). The model was developed to analyze various questions on market design, congestion management, and investment decisions, with a focus on Germany and Continental Europe. It i...
Article
The overlapping impact of the Emission Trading System (ETS) and renewable energy (RE) deployment targets creates a classic case of interaction effects. Whereas the price interaction is widely recognized and has been thoroughly discussed, the effect of an overlapping instrument on the abatement attributable to an instrument has gained little attenti...
Article
Integrating large quantities of supply-driven renewable electricity generation remains a political and operational challenge. One of the main obstacles in Europe to installing at least 200 GWs of power from variable renewable sources is how to deal with the insufficient network capacity and the congestion that will result from new flow patterns. We...
Article
Electricity markets depend on upstream energy markets to supply the fuels needed for generation. Since these markets rely on networks, congestion in one can quickly produce changes in another. In this paper we develop a combined partial equilibrium market model which includes the interactions of natural gas and electricity networks. We apply the mo...
Article
Full-text available
We propose a merchant-regulatory framework to promote investment in the European natural gas network infrastructure based on a price cap over two-part tariffs. As suggested by Vogelsang (2001) and Hogan et al. (2010), a profit maximizing network operator facing this regulatory constraint will intertemporally rebalance the variable and fixed part of...
Article
This paper, which examines the impacts of phasing out nuclear power in Germany, is the first to include an analysis of energy supply security and critical line flows in both the German and Central European electricity networks. The technical-economic model of the European electricity market, ELMOD, is used to simulate alternative power plant dispat...
Article
In most liberalized electricity markets, abuse of market power is a concern related to oligopolistic market structures, flaws in market architecture, and the specific characteristics of electricity generation and demand. Several methods have been suggested to improve the competitiveness of the liberalized electricity markets and to reallocate rents...
Article
We analyze the impact of extensive wind development in Germany for the year 2015, focusing on grid extensions and price signals. We apply the electricity generation and network model ELMOD to compare zonal, nodal, and uniform pricing approaches. In addition to a reference case of network extensions recommended by the German Energy Agency (Dena), we...
Article
Full-text available
This paper examines the Hogan-Rosellón-Vogelsang (2007) (HRV) incentive mechanism for transmission expansion, and tests it for different network topologies. This new mechanism is based upon redefining transmission output in terms of point-to-point transactions or financial transmission rights (FTRs) and applies Vogelsang’s (2001) incentive-regulati...
Article
Electricity markets depend on upstream energy markets to supply the fuels needed for generation. Since these markets rely on networks, congestion in one can quickly produce changes in another. In this paper we develop a combined partial equilibrium market model which includes the interactions of natural gas and electricity networks. We apply the mo...
Article
Full-text available
Electricity transmission has become the pivotal industry segment for electricity restructuring. Yet, little is known about the shape of transmission cost functions. Reasons for this can be a lack of consensus about the definition of transmission output and the complexitity of the relationship between optimal grid expansion and output expansion. Kno...
Article
This paper provides a review on the restructuring of electricity markets around the word including the UK, Norway, Continental Europe, and the US. The focus of this review lies on aspects of competitiveness and regulation in generation and transmission markets and market design, whereas distribution and retail are not pursued in detail. Furthermore...
Article
Wind energy has become the major renewable energy source in Germany with an installed capacity of more than 20Â GW and an annual output of about 40Â TWÂ h in 2007. In this paper we analyze the extent to which wind energy can replace fossil capacities based on wind injection and demand data for 2006 through June 2008. The results indicate that the w...
Article
We present an optimization model of the European natural gas market which is intended for the use within a regulatory approach providing incentives for efficient transmission investments. The stylized model is designed as welfare maximization taking into account production, pipeline, LNG, and storage constraints. We develop several scenarios to ana...
Article
This paper applies ELMOD, an economic-engineering model of the European electricity market to the issue of optimal investment placing of generation capacity in Germany under different market integration scenarios. The model is formulated as cost minimization approach. We conduct a scenario analysis comparing different rules for power plant placing...
Article
Competition policy is an important tool of governments to establish functioning markets, particularly in the scope of liberalizing the energy sector. An examination of horizontal divestitures in several markets suggests that in appropriate cases divestiture can enhance competition in the electricity sector.
Article
Given the ambitious, politically-driven wind energy agenda in some U.S. States (e.g., California and Texas) and in Europe (e.g., Germany and Spain), adequate regulatory instruments are needed that provide incentives for additional generation capacity and transmission expansion. This paper analyzes the impact of wind energy extension scenarios in 20...
Article
Given the ambitious goal of the European Union to achieve CO2 emission reduction, support to renewable energies, and increased energy efficiency a portfolio of different policies is going to be implemented or is already in place in the member states. These instruments have at least partly overlapping objectives; thus, a high degree of interaction i...
Article
This paper applies nodal pricing as an economic approach to efficient use of electricity networks utilization for the fairly large German grid. We combine a straightforward welfare maximization with the technical specificities of electricity flows on a realistically large network. The nodal pricing model is applied in order to analyze the impact of...
Article
Full-text available
From 2002 to 2006, German wholesale electricity prices more than doubled. The purpose of this paper is to estimate the price components in 2006 in order to identify the factors responsible for the increase. We develop a competitive benchmark model, taking into account power plant characteristics, fuel and CO2-allowance prices, wind generation, cros...
Article
This paper analyzes the interdependence of reserve and spot markets for electricity applying equilibrium models. We develop a Cournot model to analyze the impact of different pricing mechanisms at the reserve market (uniform and pay-as-bid) on spot market prices. Furthermore, we show how the demand requirement for reserve capacities can drive price...
Article
This paper provides a description of ELMOD, a model of the European electricity market including both generation and the physical transmission network (DC Load Flow approach). The model was developed at the Chair of Energy Economics and Public Sector Management (EE2) at Dresden University of Technology in order to analyze various questions on marke...
Article
In this paper we compare different approaches to account for start-up costs when modeling electricity markets. We restrict the model formulation to either linear or mixed integer problems in order to guarantee a robust solution. The results indicate that the choice of the model has a significant impact on the resulting market prices and company pro...
Conference Paper
The ongoing liberalization of the European electricity markets with the aim to achieve one integrated market requires a fundamental understanding of the technical characteristics of electricity generation and transportation. The aim of our paper is to estimate the economic implications of three different technical problems of transmission grids par...
Article
Full-text available
Angesichts einer nach wie vor nur schwach wettbewerblich ausgeprägten Marktstruktur auf dem deutschen wie auch auf anderen europäischen Elektrizitätserzeugungsmärkten, hat sich in jüngerer Zeit eine intensive Diskussion über adäquate Instrumente zur Steigerung der Wettbewerbsintensität entwickelt. Wie ließe sich eine aktive Wettbewerbspolitik begrü...
Article
This paper compares the results of different pricing systems in the German electricity sector. In particular,we compare a competitive nodal pricing approach to a cost minimization scenario under a uniform price. The model also simulates the effects of increasing offshore wind energy in the North Sea, from the current 0 GW to 8 and 13 GW, respective...
Article
In this paper, we apply the theory of nodal pricing to a particularly urgent issue of energy and environmental economics: the integration of wind power in electricity systems. We use a nodal pricing model to analyze the impact of German wind power production on the North Western European power grid. Especially the Benelux countries are supposed to...
Article
Full-text available
Das Thema »Energiepreise« ist brisant wie seit langer Zeit nicht mehr. Hohe Energiepreise schaden den Verbrauchern und der Wirtschaft. Die Energieunternehmen verweisen auf hohe Steuer- und Abgabenlasten sowie auf die Preisexplosion auf den Welterdölmärkten und die teuren Maßnahmen zur Verringerung der CO2-Emissionen. Berthold A. Bonekamp, Vorsitzen...
Article
This paper compares two popular models of oligopolistic electricity markets, Cournot and the Supply Function Equilibrium (SFE), and then tests which model best describes the observed market data. Using identical demand and supply specifications, both models are calibrated to the German electricity market by varying the contract cover of firms. Our...
Article
Trotz schrittweiser Erfolge bei der Liberalisierung der europäischen Elektrizitätsmärkte lässt die Wettbewerbsintensität auf den Großhandelsmärkten in vielen Ländern noch zu wünschen übrig. Dementsprechend sind die Preise im Verhältnis zum wettbewerblichen Referenzmaßstab zu hoch. Eine aktive Wettbewerbspolitik sollte integraler Bestandteil einer o...
Article
During 2004 and 2006 German wholesale electricity prices nearly doubled. The purpose of this paper is to estimate the factors for this price increase differentiated by fuel costs, CO2-emission allowances, and market power. We develop a competitive benchmark model, taking into account power plant characteristics, fuel and CO2-allowance-prices, wind...
Article
This paper analyzes the functioning of the markets for electricity reserves in Germany. We provide an overview of the technical requirements and the market design and structure of the primary, secondary and tertiary reserve markets, and then look at developments following the introduction of market-based reserve management. We assess the dependence...
Article
Full-text available
Given insufficiently competitive wholesale electricity markets in Germany there is an ongoing discussion about the appropriate instruments of a pro-active competition policy. This study analyzes horizontal divestiture form an economic perspective. We discuss the conceptual justification of divestiture and report on selected empirical evidence on di...
Article
This paper compares two popular models of oligopolistic electricity markets, Cournot and the Supply Function Equilibrium (SFE), and then tests which model best describes the observed market data. Using identical demand and supply specifications, both models are calibrated to the German electricity market by varying the contract cover of firms. Our...
Article
Nodal pricing has emerged from a theoretical approach to a practicable and efficient tool for network and congestion mangement. Experiences from North America and New Zealand have proven nodal pricing to be workable without serious technical problems. Continental European electricity grids like the German one are still based on a uniform pricing me...
Article
Full-text available
This paper analyses price formation and market power on Germany’s wholesale electricity markets. Electricity generation in Germany is dominated by a duopoly with a market share of about 60 %, while the four largest suppliers own about 90 % of the generation capacity. The few existing studies of wholesale electricity prices suggest that such market...

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Projects

Projects (5)
Project
The objective of the proposed research project is to perform a holistic investigation of the role of competing and/or complementary electric, thermal and chemical energy storage technologies in achieving greater penetration of renewable energy technologies and more efficient and effective use of energy in the context of the Swiss energy transition.
Project
SCCER-FURIES is the Swiss national competence center mandated to develop, promote and deploy power grid-related innovative solutions toward the implementation of the Swiss Energy Strategy 2050. The SCCER-FURIES envisions the enabling of seamless and sustainable powering of Swiss citizens’ houses, businesses and communities, by developing and demonstrating with the Distribution and Transmission network operators the essential knowledge and technologies for a sustainable and stable electrical infrastructure of the future which integrates cleaner and reliable power supplies and storage facilities.