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Short-term forecasting of electricity generation from variable renewable energy sources is not an end in itself but should provide some net benefit to its user. In the case of electricity trading, which is in the focus of this paper, the benefit can be quantified in terms of an improved economic outcome. Although some effort has been made to evaluate and to improve the profitability of electricity forecasts, the understanding of the underlying effects has remained incomplete so far. In this paper, we develop a more comprehensive theoretical framework of the connection between the statistical and the economic properties of day-ahead electricity forecasts. We find that, apart from the accuracy and the bias, which have already been extensively researched, the correlation between the forecast errors and the market price spread determines the economic implications - a phenomenon which we refer to as 'correlation effect'. Our analysis is completed by a case study on solar electricity forecasting in Germany which illustrates the relevance and the limits of both our theoretical framework and the correlation effect. • The economics of short-term electricity forecasts are studied analytically and empirically. • The value and the risk of forecast-based electricity trading are evaluated. • We find that the economics depend on the correlation of forecast errors with prices. • Hence, the most accurate forecast is not necessarily the most accurate. [ABSTRACT FROM AUTHOR]

Abstract: Wind energy development is booming worldwide with Germany and the United States being forerunners in installed capacity. Based on a review of relevant laws and regulations, policy, siting, and permitting documents, academic literature, and expert interviews, the paper compares the permit and environmental impact assessment (IA) policies and regulations pertaining to wind energy projects in both countries. The focus is on the potential of IAs in supporting an environmentally conscious development of wind power generation. This includes the analysis of IA regulations on the project level, strategic level impact assessment and planning processes, opportunities for public involvement and transparency of processes, and the clarity and predictability of the IA provisions. The findings suggest certain variations between both countries'' permit and IA processes for wind energy projects and further research needs, inter alia on the actual effects of strategic assessment of wind development on subsequent permitting. [Copyright &y& Elsevier]

While the success of the German Renewable Energy Sources Act in supporting the use of renewable energy sources for electricity generation is widely acknowledged, it is partly criticised for imposing unjustified extra costs on society. Based on the well established ExternE methodology for the quantification of environmental externalities the paper makes an attempt to estimate the external costs avoided in the German energy system due to the use of renewable energies for electricity generation, and to compare them against the compensation to be paid by grid operators for electricity from renewable energies according to the Renewable Energy Sources Act. In spite of existing uncertainties associated with the assessment of external costs, results clearly indicate that the reduced environmental impacts and related economic benefits do outweigh the additional costs for the compensation of electricity from renewable energies. [Copyright &y& Elsevier]