Universität zu Köln

Czock, Berit Hanna ORCID: 0009-0007-3685-5691 (2025). Economic Essays on the Energy Transition. PhD thesis, Universität zu Köln.

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Abstract

This dissertation contributes to the debate on how to achieve a cost-efficient energy transition in Germany. It explores open questions related to coordination issues in electricity grids and markets, and the decarbonization of residential heating. It consists of four papers, each addressing a distinct aspect of the energy transition: Chapter 2 analyzes coordination issues in a power system with a high share of renewables and spatial imbalances that lead to transmission grid congestion. Using both a theoretical benchmark (nodal pricing) and a numerical partial‐equilibrium model of Germany’s grid, it shows that under uniform pricing randomly sited batteries incur a 9.3 % cost premium versus the theoretical first-best nodal pricing benchmark, while optimal siting (south of the north–south bottleneck, near solar) narrows this to 8.6 %. Simple policy rules (e.g. solar-tied siting or targeted site auctions) could potentially recover most of the theoretical gain. Chapter 3 examines static welfare effects of splitting the German bidding zone under fricitions in flow-based market coupling and redispatch. In a 2030 scenario, a two-zone split yields a 1.6 % welfare loss, whereas a three-zone split delivers a 4.4 % gain. Both options, however, entail higher consumer costs and subsidy expenditures, and results are sensitive to assumptions on redispatch frictions and the scenario. To tackle climate change, residential heating must become climate-neutral. Which technologies have the potential to achieve this goal in a cost-efficient manner is a complex question, given the heterogeneity of buildings and existing infrastructure, as well as the uncertainty regarding future energy prices and infrastructure costs. Chapter 4 compares levelized costs of eleven decentralized and centralized heating technologies across a wide range of input parameters. It finds that heat pumps dominate most scenarios—decentralized in rural areas, district heat in urban settings—while hydrogen boilers and synthetic methane compete only under very low fuel-price assumptions. These findings are highly relevant for the ongoing municipal heat planning process. Chapter 4 uses a building-level mixed‐integer model to assess how subsidies, renewable mandates, and CO₂ pricing shape household investments in decentralized energy technologies across a representative German stock. Under renewable energy requirements, subsidies, CO2 pricing, high medium-term gas prices, and moderate electricity price increases, many buildings switch early to heat pumps and benefit from subsidies. At the same time, buildings with recently installed gas or oil systems, or single-story systems face high costs—highlighting significant distributional effects of the energy transition. Across these four chapters, the dissertation demonstrates that refining price signals and potentially complementing them with well-targeted policy instruments is essential to guide investment and dispatch decisions toward a least-cost, equitable German energy transition.

Item Type:	Thesis (PhD thesis)
Creators:	Creators Email ORCID ORCID Put Code Czock, Berit Hanna berit.czock@posteo.de https://orcid.org/0009-0007-3685-5691 UNSPECIFIED
URN:	urn:nbn:de:hbz:38-791734
Date:	2025
Language:	English
Faculty:	Faculty of Management, Economy and Social Sciences
Divisions:	Externe Einrichtungen > An-Institute > Associated Institutes of the Faculty of Management, Economics and Social Sciences > Institute for Energy Economics
Subjects:	Economics
Uncontrolled Keywords:	Keywords Language Energy Transition English Electricity Grids English Batteries English Electricity Market Design English Bidding Zone Split English Heating Transition English Heat Pumps English Building Energy Policy English Subsidies English CO2 Pricing English Carbon Pricing English
Date of oral exam:	15 October 2025
Referee:	Name Academic Title Bettzüge, Marc Oliver Prof. Dr. Bucksteeg, Michael Jun.-Prof. Dr.
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/79173