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...

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...

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...

We propose a price-cap mechanism for electricity-transmission expansion based on redefining transmission output in terms of financial transmission rights. Our mechanism applies the incentive-regulation logic of rebalancing a two-part tariff. First, we test this mechanism in a three-node network....

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...