We develop an analytical model to derive the competitive market equilibrium for electricity spot and reserve markets under stochastic demand and uncertain renewable electricity generation. We then derive the welfare-optimal provision of reserves. At first-best, cost of reserve capacity is...

The German housing stock needs substantial energetic retrofit to meet carbon reduction targets. Various instruments are available to motivate building owners to improve the energy efficiency of their dwellings. These instruments mainly focus on the economic issue of funding and financing energy...

German Abstract: Die gekoppelte Erzeugung von Strom und Wärme in KWK-Anlagen ist eine der brennstoffeffizientesten Erzeugungsformen im Strommarkt. Aus diesem Grund wird sie in vielen europäischen Ländern gefördert und ihr Ausbau ist erklärtes Ziel von Regierungen und...

The ongoing transformation process towards a low or even zero emission energy system is facing a steadily increasing complexity, notably through variable renewable energies and sector coupling. At the same time, the necessity for long-term decisions associated with high capital costs...

The German government aims at a climate-neutral building stock by 2050 to reach the goals defined in the Climate Action Plan 2050. Increasing the energy efficiency of existing buildings is therefore a high priority. For this purpose, investments of private homeowners will play a major role since...

Investment decisions in competitive power markets are based upon thorough profitability assessments. Thereby, investors typically show a high degree of risk aversion, which is the main argument for capacity mechanisms being implemented around the world. In order to investigate the...

Forecasting hourly electricity prices and their characteristic properties is a core challenge for energy generation companies and trading houses. The short-term marketing and purchase of electricity is usually managed with standardized products traded on different markets and with specific...

The analysis of future energy systems with increasing shares of renewable energy production poses various challenges to models used in the field of energy system analysis. Aggregation is one solution to reduce the computation time of large optimization problems, especially for optimization...