Universität zu Köln

Zinke, Jonas ORCID: 0000-0002-2551-9509 (2024). On Market Designs for the Transition of Power Systems towards Climate Neutrality. PhD thesis, Universität zu Köln.

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Abstract

This thesis comprises four chapters, each dedicated to exploring specific research questions arising from the ongoing transition of power systems towards climate neutrality. Chapter 2 evaluates investment incentives for wind power plants in Germany, considering transmission grid constraints. By applying the concept of nodal pricing as a benchmark of efficient coordination between power generation and grid congestion, the article quantifies the distorted investment signals arising from uniform pricing. Furthermore, the chapter finds that regional investment restrictions show more promise in mitigating this distortion than latitude-dependent generator components in grid tariffs. Chapter 3 investigates the efficient allocation of battery storage and quantifies potential cost reductions in electricity supply. The chapter analyzes different distribution heuristics and reveals that simple allocation rules, such as tying battery investments to solar capacity or auctioning capacity at a limited number of suitable sites, can approximate the optimal solution. Chapter 4 investigates how robust a split of the existing German bidding zone can reduce redispatch costs. By evaluating the resulting redispatch costs, the article shows that while the impact of yearly weather fluctuations is limited, long-term changes in the power system’s properties can significantly influence the cost reduction potential of a bidding zone reconfiguration. Chapter 5 is dedicated to the European Union Emission Trading System. Challenging the common assumption of time-independent marginal abatement cost (MAC) curves, the chapter shows that MAC curves flatten over time, primarily due to loosening investment restrictions and technological learning. Time-dependent MAC curves reduce incentives for banking and could potentially drive up carbon prices if firms are myopic.

Item Type:	Thesis (PhD thesis)
Creators:	Creators Email ORCID ORCID Put Code Zinke, Jonas jonaszinke93@gmail.com https://orcid.org/0000-0002-2551-9509 UNSPECIFIED
URN:	urn:nbn:de:hbz:38-732218
Date:	2024
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 Nodal Pricing UNSPECIFIED Market design UNSPECIFIED Energy System Modeling UNSPECIFIED Renewable Energies UNSPECIFIED Market Values UNSPECIFIED Bidding Zone Review UNSPECIFIED Electricity Markets UNSPECIFIED Electricity Markets UNSPECIFIED Storage UNSPECIFIED Flexibility UNSPECIFIED Batteries UNSPECIFIED EU ETS UNSPECIFIED Marginal Abatement Cost Curves UNSPECIFIED Emission Abatement UNSPECIFIED Power Sector Modeling UNSPECIFIED
Date of oral exam:	29 May 2024
Referee:	Name Academic Title Bettzuege, Marc-Oliver Prof. Dr. Ruhnau, Oliver Jun.-Prof. Dr.
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/73221