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The diffusion of renewable electricity technologies is widely considered as crucial for establishing a sustainable energy system in the future. However, the required transition is unlikely to be achieved by market forces alone. For this reason, many countries implement various policy instruments to support this process, also by re-distributing related costs among all electricity consumers. This paper presents a novel history-friendly agent-based study aiming to explore the efficiency of different mixes of policy instruments by means of a Differential Evolution algorithm. Special emphasis of the model is devoted to the possibility of small scale renewable electricity generation, but also to the storage of this electricity using small scale facilities being actively developed over the last decade. Both combined pose an important instrument for electricity consumers to achieve partial or full autarky from the electricity grid, particularly after accounting for decreasing costs and increasing efficiency of both due to continuous innovation. Among other things, we find that the historical policy mix of Germany introduced too strong and inflexible demand-side instruments (like feed-in tariff) too early, thereby creating strong path-dependency for future policy makers and reducing their ability to react to technological but also economic shocks without further increases of the budget. [ABSTRACT FROM AUTHOR]

This paper presents a comparative analysis of energy governance regarding nonconventional renewable energy sources (NCRES) in Brazil and Germany. Brazil is a world leader in the use of conventional renewable energy sources, such as hydro power, while Germany has been achieving outstanding results in fostering NCRES. The focus is on two critical issues: the legal and regulatory framework and the institutions created to support the NCRES market development. The comparison shows that, despite the very different energy situations and policy drivers, valuables lessons can be extracted from the German experience. The main lesson for Brazil is to think NCRES as a strategic opportunity to rely less on fossil fuel and large hydroelectric power plants, to decentralize the electric power sector, to use the huge solar, biomass and wind power potential available in the country and to create a environment-friendly NCRES industry. To this end, three critical points were identified: (1) the legal and regulatory framework should be improved; (2) long-term energy planning taking into account social, economic and climate issues and; (3) the current institutions supporting NCRES in Brazil should be upgraded and/or new ones, such as more specific energy agencies, should be created. [ABSTRACT FROM AUTHOR]

The increasing utilization of renewable energy sources (RES) is a major energy policy strategy in many countries worldwide. Germany is a forerunner in the deployment of RES and has ambitious goals for the future. The support and use of renewables affects the economy: It creates business opportunities in sectors producing renewable energy facilities, but comes with costs related to supporting its deployment. This paper analyses and quantifies the net balance of economic effects associated with renewable energy deployment in Germany until 2030. To this end, we use a novel model, the ‘Sectoral Energy-Economic Econometric Model’. This is an econometric multi-country model which, for Germany, contains a detailed representation of industries, including 14 renewable energy technology sectors. Our results show that renewable energy expansion can be achieved without compromising growth or employment. The analysis reveals a positive net effect on economic growth in Germany. Net employment effects are small, but also positive. Their size depends strongly on labour market conditions and policies. Results at the industry level indicate the size and direction of the need for restructuring across the sectors of the Germany economy. [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]

• Frequency and turnover of negative prices increase at the German power exchange. • Negative market prices do not only appear due to infeed of renewable energies. • Regulatory intervention does not protect against price risks from negative prices. While Germany is home to the largest energy exchange in Europe, negative market prices still represent an unusual and serious phenomenon. In this paper, drivers of negative energy prices in Germany are investigated. Running multiple logit regressions for detecting price indicators, a period of hourly-based data will be examined. Further, qualitative arguments and foremost energy policy need to be taken into account for explaining the phenomenon, and for the drawing of economic and political conclusions. [ABSTRACT FROM AUTHOR]