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Sector coupling will play a key role in the future energy system to realise greenhouse gas emission reductions. A major factor will be green hydrogen based on renewable energies to defossilise consumption sectors. Related business models of power to gas are not yet implemented on the market. However, given the urgency of the change, this is essential. This paper investigates hydrogen business models under current market conditions of high power prices, no existing market for green hydrogen and the given regulatory framework with no levies for green hydrogen production in the German market. For this purpose, an open-source business model evaluation tool for sector coupling, which enables a simple and generic evaluation of sector coupling business models including production and possible transportation infrastructure, is developed and applied. Furthermore, the impact of changes of the input parameters like power prices and the influence of regulatory changes on profitability are assessed. The results show that X-to-power business cases can be already profitable due to high power prices on the wholesale market. However, power-to-X business models like hydrogen production still have negative net present values and the net present value is worsened when infrastructure for hydrogen transportation is considered. Key parameters for the negative result are investment costs and low hydrogen prices. Nevertheless, it must be considered that higher hydrogen prices have a negative impact on the X-to-power business model. To allow for profitable business cases, the market conditions need to be adjusted to ensure sufficiently high prices for green hydrogen. Furthermore, subsidies on investment or operational and maintenance costs can support the integration of power-to-X into the market. Transportation infrastructure has a significant impact on profitability. Given these facts, it is necessary to create the required framework conditions to ensure the realisation of sector coupling. • Presentation of an open-source approach to assessing sector coupling business models. • Case study on hydrogen including renewables, transportation infrastructure, and regulatory and market conditions in Germany. • No market-based introduction of power-to-X business models without subsidies. • X-to-power business models profitable due to high power prices. • Power-to-X and X-to-Power jeopardise each other as they require opposing hydrogen and electricity prices. [ABSTRACT FROM AUTHOR]

This paper aims to quantify the relation between real GDP, CO2 emissions, renewable and nonrenewable energy consumption, tourism development and labor force for France and Germany as these two countries are pioneer countries pushing Paris agreement within and outside the European Union. The time spans have been used for the period of 1995–2015 according to data availability. In the presence of cross-sectional dependency, several first and second-generation unit root tests confirm the unit root problem while Pedroni and Westernlund confirm the cointegration. Results reveal an inverted U-shape relation between CO2 emissions and real GDP in long run confirming the validity of environmental Kuznets curve for the group of France and Germany. Results declare that renewable energy significantly reduces carbon emissions while nonrenewable energy consumption adds to carbon emissions. Tourism sector was found helpful in carbon reduction that appeals to attract more tourists for the development of sustainable tourism industry by taking energy conservation and emissions reduction in relevant industries in the full consideration. • This paper explores the determinants of carbon emissions for France and Germany. • An inverted U-shape relation was found between carbon emissions and real GDP in long run. • Results reveal renewable energy helps in carbon emissions reduction. • Nonrenewable energy consumption was adding in CO2 emissions. • Tourism sector was found supportive in carbon reduction. [ABSTRACT FROM AUTHOR]

• Imported green e-H 2 is more expensive than e-H 2 produced in Germany and Finland. • Local supply of e-H 2 found to be more economical across all scenarios and years. • Transportation costs constitute 29–63% of the total imported e-H 2 cost. • Pipeline transmission may be cheaper than shipping for distances of 2000–2500 km. Widely available and low-cost solar photovoltaics and wind power can enable production of renewable electricity-based hydrogen at many locations throughout the world. Hydrogen is expected to emerge as an important energy carrier constituting some of the final energy demand; however, its most important role will be as feedstock for further processing to e-fuels, e-chemicals, and e-steel. Apart from meeting their own hydrogen demand, countries may have opportunities to export hydrogen to countries with area limitations or higher production costs. This paper assesses the feasibility of e-hydrogen imports to Germany and Finland from two case regions with a high availability of low-cost renewable electricity, Chile and Morocco, in comparison to domestic supply. Special attention is paid to the transport infrastructure, which has a crucial impact on the economic viability of imports via two routes, shipping and pipelines. This study has found that despite lower e-hydrogen production costs in Morocco and Chile compared to Germany and Finland, additional transportation costs make imports of e-hydrogen economically unattractive. In early 2020s, imported fuel costs are 39–79% and 34–100% higher than e-hydrogen produced in Germany and Finland, respectively. In 2050, imported e-hydrogen is projected to be 39–70% more expensive than locally produced e-hydrogen in Germany and 43–54% in the case of Finland. e-Hydrogen may become a fuel that is mostly produced domestically and may be feasible for imports only in specific locations. Local e-hydrogen production may also lower dependence on imports, enhance energy security, and add jobs. [ABSTRACT FROM AUTHOR]

The deployment of onshore wind power is an important means to mitigate climate change. However, wind turbines also have negative impacts at the local scale, like disamenities to residents living nearby, changes in landscape quality, or conflicts with nature conservation. Our paper quantifies spatial trade-offs arising between these criteria. For this purpose, we propose a novel approach using Pareto frontiers and a Gini-like potential trade-off indicator. Our analysis builds on a spatial optimization model using geographical information system data for Germany. We show that spatial trade-offs between the criteria under consideration are substantial. The size of the trade-off varies substantially with the criteria under consideration, depending on the spatial heterogeneity of each criterion as well as on the spatial correlation between the criteria. Spatial trade-offs are particularly pronounced between nature conservation (measured by impacts on wind power-sensitive birds) and other criteria. [ABSTRACT FROM AUTHOR]

[Display omitted] • We simulate renewables pathways under different support phase-out scenarios. • We extend an investment algorithm by preferences and calibrated returns. • Our improved algorithm incorporates more heterogeneity resulting in stronger effects. • Further auction support is necessary for most capacity targets in the case countries. • Countries should coordinate policy changes due to cross-border effects. Support schemes have been central to the expansion of renewable electricity globally and in the European Union. As technologies mature, individual member states may decide to phase out these policies. While previous research has shown that such policy changes affect investors' decisions, we investigate how they affect pathways and electricity prices by simulating investment decisions in an agent-based model in two case countries. This paper contributes and applies an adapted investment decision algorithm that incorporates empirically observed technology and return preferences and is calibrated by return observations. The new algorithm yields more refined and stronger effects compared to its predecessor. Results show that the phase-out of auctions in Germany and the Netherlands slows down their deployment of renewable capacity by up to ∼60% and ∼35%, respectively. With the exception of photovoltaics and onshore wind projects in the Netherlands, the targeted capacities can only be reached by continuing support in both countries. Furthermore, ending support in a large country like Germany leads to higher electricity prices and fosters a market-driven but insufficient capacity expansion in smaller neighbours like the Netherlands. As the electricity grids in many countries are strongly interconnected, such cross-border effects are of international relevance. Our findings suggest that continued auctions may be necessary and that countries should coordinate policy changes to stay on track for meeting their renewables targets. [ABSTRACT FROM AUTHOR]

The threat of climate change motivates the expansion of variable renewable energy sources (VRES) as well as the transition to plug-in electric vehicles (PEV). Both technologies present unique challenges to electricity systems, potentially leading to high grid expansion cost. In this paper, we present a detailed assessment on how smart-charging of PEVs can mitigate these problems and reduce cost on the distribution grid level. To this end, we propose a heuristic policy that dynamically decides on charging of PEVs, curtailment of VRES, and subsequently on infrastructure investments trading off fixed investments with variable operational costs. The main inputs are modeled as stochastic and the proposed policy is non-anticipative. We conduct a comprehensive case study for Germany in the year 2035 using detailed descriptions of existing distribution grids, realistic driving patterns, and real-world VRES feed-in data. Potential savings of €6.2 billion in investment costs lead to a reduction in total distribution grid cost of around 19%. This result is achieved by upgrading 7 million (21%) PEV chargers all over Germany. Upgrading 100% of chargers to smart-chargers as is proposed in the extant literature is clearly sub-optimal as it leads to significantly higher total cost. A closer investigation for single grids reveals that savings as well as the optimal share of smart chargers varies widely between grids. In particular, the potential of smart charging is much greater in rural areas than in urban centers. Furthermore, the results suggest that curtailment of VRES production is economically only in rare circumstances. • We consider distribution grids with renewables generation and electric vehicles. • We propose a non-anticipative policy for curtailment and charging of vehicles. • Smart charging considerably reduces overall system cost. • Optimal levels of smart charging are far below 50%. • Optimal decisions and savings fluctuate depending on grid characteristics. [ABSTRACT FROM AUTHOR]