The Impact of Wind Power Support Schemes on Technology Choices

Germany changed renewable remuneration for wind power from a fixed Feed-In Tariff (FIT) to a floating Market Premium Scheme (MPS) in 2012. One aim of this adjustment was to better align the supply of generated wind electricity with the demand for it, e.g. through more system-friendly wind turbine technology choices. In energy systems with a high share of variable renewable energies, such turbines produce a higher share of their production at lower wind speeds and thus can reduce the need for alternative flexibility options like back-up capacity, storage, grid extensions and demand side measures. However, based on a wind power investment model, I show that the MPS fails to convey strong enough incentives to project developers to significantly alter their investment decisions as long as these base their investments on current electricity market price profiles and are limited by their access to risk-averse project finance. One reform proposal to support the installation of system-friendly turbines is a change in the production volume-based benchmark approach which plays an integral part in both the fixed FIT and the MPS. The investment model indicates that such a revised policy can incentivize the deployment of moderately more system-friendly wind power technologies at some locations. An alternative option is to shift to a production value-based benchmark approach. It directly reflects the future additional market value of system-friendly turbines in today's remuneration structure. Thus, this approach sets incentives also for investors without perfect foresight - or with financing constraints - to deploy more systemfriendly turbines that meet the requirements of power systems with increasing shares of wind power

Rethinking Pumped Storage Hydropower in the European Alps

The European Alps are well positioned to contribute significantly to the energy transition. In addition to sites with above-average potential for wind and solar power, the “water towers” of Europe provide flexible, low-carbon power generation as well as energy storage. In the future, hydropower systems are expected to become more than mere electricity generators, serving a key role as flexible complements to intermittent power generators and as providers of large-scale seasonal and daily energy storage. Energy transition on national and European scales can be facilitated by expanding the capacity of pumped storage hydropower (PSHP) plants. Yet the extension of hydropower production, in particular PSHP, remains controversial, primarily due to environmental concerns. Focusing on 2 Alpine countries, Austria and Switzerland, this paper provides a system view of hydropower production and energy storage in the Alps. It discusses advantages and drawbacks of various assessment tools and identifies gaps and needs for the integrated assessment of PSHP plants. It concludes that instruments that evaluate the impacts and sustainability of PSHP projects need to be developed, elaborated, and applied in a participatory manner, in order to promote public dialogue, increase social acceptance, and, ideally, encourage energy consumers to become advocates of a sustainable energy future