The German government's energy concept envisages the expansion of renewable energy sources to more than 80 % of gross electric power consumption by 2050. This expansion will lead to an increase in the fluctuation of the energy supply and a change in the profile of marginal generation costs. A promising way of dealing with the fluctuating production volume – in addition to storage, adaptation and partial load operation of conventional power plants, and expansion of the grids to neighboring regions – is a flexible adaptation of demand, for example by using energy-adaptive production technologies. In addition to questions of technical implementation, there are particular challenges for the design of markets that ensure that incentives are created for the construction and system-stabilizing use of flexible production and demand options. The low marginal costs at high investment costs and the cost development of renewable energies raise questions about investment incentives and the long-term design and adaptation of the promotion of renewable energy sources. The planned project deals with the design of markets for flexible demand, provides answers to questions on the integration of renewable energy sources into the electricity markets, and uses the knowledge gained to set the basis for subsequent market design research and policy advice energy markets of the future with a high share of renewable energy sources.

Project duration

01.05.2020 - 31.05.2020

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Departments

Market Design