Universität zu Köln

Jeddi, Samir (2025). Essays in Energy Economics: On Price Signals and Investments. PhD thesis, Universität zu Köln.

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Abstract

This thesis presents four papers that explore specific research questions arising from the coordination problem of different price components and their incentives for investments within the transitioning electricity sector. Chapter 2 applies an analytical model to examine various regulatory settings, combining different spot market pricing schemes (zonal vs. uniform) and network tariff designs (fixed vs. volume-based) in a dynamic context. The research finds that while zonal pricing with fixed network tariffs achieves the highest welfare, deviations can lead to inefficiencies. Interestingly, the study shows that two inefficiently designed price components might sometimes be better than one, particularly if network tariffs can correct for inefficiencies in the pricing scheme. The allocation of network costs is also crucial for spatial price signals and dynamic investment decisions. Chapter 3 provides empirical insights into real-world consumer responses to price signals. It investigates the impact of regionally differing electricity prices on PV investments under net purchasing. The results show that network tariffs do impact PV adoption. The effect has increased in recent years as self-consumption has become financially more attractive, and the results confirm that PV investments are driven by the volumetric tariff. Chapter 4 presents a model framework including a mixed-integer linear program and a stochastic simulation of renewable generation profiles and electricity prices to assess the dispatch of hybrid PV-Battery Energy Storage Systems (BESS). The analysis examines the grid connection sizing of such assets, considering weather-induced generation uncertainty and price fluctuations. The findings suggest a strong negative correlation between PV and BESS margins, leading to risk diversification. Withdrawal constraints from the grid are found to reduce margins and increase risks. Conversely, hybrid systems can significantly reduce the grid injection capacity without impacting margins or risk, especially as peak solar generation coincides with low power prices. Market premium payments are found to diminish diversification benefits and encourage larger grid connections. Chapter 5 assesses the welfare effects of Carbon Contracts for Differences (CCfDs). In the model, a regulator can offer CCfDs to risk-averse firms that decide upon irreversible investments in an emission-free technology in the presence of risk. Risk arises from environmental damage or the variable costs of the emission-free technology. On the one hand, through their hedging effect, CCfDs motivate firms to invest more in low-emission technologies, thereby increasing welfare. On the other hand, hedging through CCfDs carries the risk of artificially keeping inefficient production processes in the market at a later stage, which reduces welfare.

Item Type:	Thesis (PhD thesis)
Creators:	Creators Email ORCID ORCID Put Code Jeddi, Samir samir-jeddi@web.de UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-788283
Date:	26 August 2025
Language:	English
Faculty:	Faculty of Management, Economy and Social Sciences
Divisions:	Faculty of Management, Economics and Social Sciences > Economics > Microeconomics, Institutions and markets > Professorship for Energy and Environmental Economics
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language Market Design UNSPECIFIED Nodal Pricing UNSPECIFIED Electricity Markets UNSPECIFIED Network Tariffs UNSPECIFIED Storage UNSPECIFIED Renewable Energies UNSPECIFIED Non-linear Prices UNSPECIFIED PV Investments UNSPECIFIED Network Regulation UNSPECIFIED Spatial Coordination UNSPECIFIED Panel Data UNSPECIFIED Uniform pricing UNSPECIFIED Carbon Contracts for Differences UNSPECIFIED
Date of oral exam:	26 August 2025
Referee:	Name Academic Title Bettzüge, Marc Oliver Prof. Dr. Ruhnau, Oliver Jun.-Prof. Dr.
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/78828