Electricity market models, implemented as dynamic programming problems, have been applied widely to identify possible pathways towards a cost-optimal and low carbon electricity system. However, the joint optimization of generation and transmission remains challenging, mainly due to the fact that...

Liberalized electricity markets are characterized by fluctuating price-inelastic demand of non-storable electricity, often defined by a substantial market share held by one or few incumbent firms. These characteristics have led to a controversial discussion concerning the need for and the design...

Unter dem Merit-Order-Eekt (M-O-E) der erneuerbaren Energien (EE) wird deren preissenkende Wirkung auf die Strompreise auf Großhandelsebene (Börsenpreise) verstanden. Sowohl die Höhe des Merit-Order-Effekts in der kurzen und der langen Frist als auch dessen volkswirtschaftliche Bedeutung ist...

Liberalization of network industries frequently separates the network from the other parts of the industry. This is important in particular for the electricity industry where private firms invest into generation facilities, while net- work investments usually are controlled by regulators. We...

In the aftermath of the nuclear catastrophe in Fukushima, German nuclear policy has been reconsidered. This paper demonstrates the economic effects of an accelerated nuclear phase-out on the German electricity generation sector. <p> A detailed optimization model for European electricity markets is...</p>

In this paper, we develop a methodology for deriving a consistent measure for supply adequacy in the power generation sector. We especially consider the secured generation capacity of intermittent renewable energy sources such as wind. <p> Availability of conventional power plants is estimated...</p>

This paper studies the interdependency of a spot electricity market and a market for incremental reserve capacity in a competitive setting, where a continuum of firms supplies both markets. It is proved that a simultaneous competitive equilibrium on both markets exists in the stylised model...

The European Commission has intensively discussed the mandatory separation of natural gas transmission from production and services. However, economic theory is ambiguous on the price effects of vertical separation. In this paper, we empirically analyse the effect of ownership unbundling of...

Supervised dimension reduction methods have been extensively applied in different scientific fields like biology and medicine in recent years. However, they have hardly ever been used in micro economics, and in particular cost function modeling. Nonetheless, these methods can also be useful in...

The German Energiewende’s potential effects on the reliability of electricity supply as well as the corresponding economic consequences have recently entered both the political and scientific debate. However, empirical evidence of power outage costs in Germany is rather scarce. Following a...