@misc{MuesgensOckenfelsPeek, author = {M{\"u}sgens, Felix and Ockenfels, Axel and Peek, Markus}, title = {Balancing Power Markets in Germany: Timing Matters}, series = {Zeitschrift f{\"u}r Energiewirtschaft}, volume = {36}, journal = {Zeitschrift f{\"u}r Energiewirtschaft}, number = {1}, issn = {1866-2765}, pages = {1 -- 7}, abstract = {This paper analyzes timing issues on the German balancing power market. We focus the analysis on the length of the bidding period, i.e. the length of the time period a supplier has to provide balancing power capacities, and the question of how far before the beginning of a bidding period the auction should be carried out. We show that different load levels require different plants for the optimal provision of balancing power. In a longer bidding period, the power plants that have the lowest average cost in the bidding period are unlikely to be efficient in all hours of the bidding period. Hence, shortening bidding periods can increase efficiency. Furthermore, we show that an early commitment on a power plant's mode of operation (when uncertainty about resulting spot prices is still relatively high) also reduces efficiency. This suggests that the auction should be held relatively close to the beginning of the bidding period. Furthermore, we discuss some advantages of a liquid real time market.}, language = {en} } @misc{BatzLineiroMuesgens, author = {Batz Li{\~n}eiro, Taimyra and M{\"u}sgens, Felix}, title = {A first analysis of the photovoltaic auction program in Germany}, series = {16th International Conference on the European Energy Market (EEM)}, journal = {16th International Conference on the European Energy Market (EEM)}, isbn = {978-1-7281-1257-2}, issn = {2165-4093}, doi = {10.1109/EEM.2019.8916472}, pages = {5}, language = {en} } @misc{BatzLineiroMuesgens, author = {Batz Li{\~n}eiro, Taimyra and M{\"u}sgens, Felix}, title = {Evaluating the German onshore wind auction programme: An analysis based on individual bids}, series = {Energy Policy}, volume = {172}, journal = {Energy Policy}, issn = {1873-6777}, doi = {10.1016/j.enpol.2022.113317}, abstract = {Auctions are a highly demanded policy instrument for the promotion of renewable energy sources. Their flexible structure makes them adaptable to country-specific conditions and needs. However, their success depends greatly on how those needs are operationalised in the design elements. Disaggregating data from the German onshore wind auction programme into individual projects, we evaluated the contribution of auctions to the achievement of their primary (deployment at competitive prices) and secondary (diversity) objectives and have highlighted design elements that affect the policy's success or failure. We have shown that, in the German case, the auction scheme is unable to promote wind deployment at competitive prices, and that the design elements used to promote the secondary objectives not only fall short at achieving their intended goals, but create incentives for large actors to game the system.}, language = {en} } @misc{BatzLineiroMuesgens, author = {Batz Li{\~n}eiro, Taimyra and M{\"u}sgens, Felix}, title = {Pay-back time : increasing electricity prices and decreasing costs make renewable energy competitive}, series = {Energy policy}, volume = {199}, journal = {Energy policy}, publisher = {Elsevier BV}, address = {Amsterdam}, issn = {1873-6777}, doi = {10.1016/j.enpol.2025.114523}, pages = {1 -- 14}, abstract = {The global energy transition needs a large-scale rollout of electricity generation from renewable energy sources (RES). Leading nations such as Spain, Japan, and Germany have invested early and substantially in RES. This leadership has been associated with high expenditures, but the trend is reversing as RES become more competitive. First, levelized costs of electricity for RES have decreased significantly and second, wholesale prices for electricity have increased, due to more ambitious climate protection and rising fuel prices. Despite favorable developments indicating a decline in the financial support needed for renewable deployment—and the fact that many countries still need to significantly increase their renewable capacities to meet climate objectives—renewable support has once again come under criticism. This paper demonstrates that cost-related criticism and concern is often unwarranted. By quantifying the aggregated subsidies of all RES units in Germany, which arguably are among the highest in the world, our findings reveal that: i) the net support costs of RES have been high in the past, ii) most net subsidies have already been paid and iii) newer installations of wind offshore, wind onshore and ground mounted PV are economically profitable. In addition, we show that wind onshore has been the most cost-efficient technology over time and explore the remarkable evolution of solar technologies, transitioning from one of the costliest to one of the most cost-effective options.}, language = {en} }