Kochems, Johannes

Nienhaus, Kristina

Schimeczek, Christoph

Sperber, Evelyn

Institute of Transport Research:Publications

Comparison of Support Schemes for Renewables – German Case StudyJohannes Kochems, Evelyn Sperber, Kristina Nienhaus, Christoph Schimeczek October 6th 2023German Aerospace Center, Institute of Networked Energy SystemsObjectives• Develop electricity market designs for ~100% renewable power systems,• Model and simulate new market agents, procedures and mechanisms,• Develop open-access tools to analyse ~100% renewable electricity markets• Engage stakeholders in the improvement and use of market simulation toolsModels• Optimisation: Backbone, COMPETES• Agent-based: AMIRIS, EMLabpy, MASCEM, RESTradeEnergy Market Case Studies• Local• National: Netherlands, Germany, MIBEL• Pan-EuropeanProject TradeRES2https://traderes.eu/3AMIRIS: open Agent-based Market model for the Investigation of Renewable and Integrated energy Systems• is an agent-based model for the power market• models business-oriented, strategic dispatch decisions• considers different regulatory framework conditions• is available open source at https://gitlab.com/dlr-ve/esy/amirisGerman Case StudyDispatch Simulationhttps://dlr-ve.gitlab.io/esy/amiris/home/4AMIRISMarkets• Determine pricesPlant operators• Control power plantsTraders• Fulfil marketing strategiesFlexibility providers• Optimise dispatchInformation provider• Create forecastsPolicy• Provide support→ More details: See yesterday’s skill workshop on AMIRISAre RES remuneration schemes needed and if so, how should they be designed?5Approach• Dispatch simulation with AMIRIS• Considering different support policies• Compare market performance indicatorsGerman Case StudyResearch QuestionPremia designIteratively adjusted, such that each RES technology finances their total costs within a 0.1% tolerance bandScenarioScenario data from Backbone• “None”: no support• “MPFIX”: fixed market premium (ex ante)• “MPVAR”: variable market premium (ex post) with a monthly reference period• “CFD”: two-way Contracts for Differences as extension to the market premium (ex post) with a monthly reference period• “CP”: fixed capacity premium• “Financial CFD”: Financial CfD, as suggested bySchlecht et al. (2023) with country average as reference plantAnalysed support instruments Parameterization6German Case StudyResearch designPreliminary results7• No market-based refinancing in any case• Refinancing with support: ideally parameterized (!) market designs8Solid: market-basedHatched: support paymentsMarket performanceCost recovery• Quite low• Stable across instrumentsCauses• Flexibility scheduled according to optimizer• Low hydrogen prices: 46 €/MWh on average9Market performanceAverage electricity prices10Market performanceH2 price 150 €/MWh: Electricity prices• Average prices increase~9 €/MWh• Additional increase in case of CfD ~1 €/MWh• Similar curtailment for wind at any support instrument• Increased PV curtailment in CfD due to payback period11Market performanceH2 price 150 €/MWh: Market-based curtailment12Market performanceH2 price 150 €/MWh: Cost recovery• Overall higher market-based refinancing~10 percentage points• CFD: PV avoids payback –wind profits• MPVAR: PV profits from high prices in one month13Summary• Support instruments are likely required to de-risk RES investments• No fundamental discrepancies between assessed instruments if perfectly parametrised• But: missing ex-ante information in real-world applications lead to different investment risk profileOutlookInvestment risk profiles• Effects of different support policies on refinancing risksEndogenization of flexibility• of storages and electrolysers• first results show that market-based refinancing is clearly increasedSummary & Outlook

Comparison of Support Schemes for Renewables - German Case Study

https://elib.dlr.de/198454/1/German_Case_Study.pdf

Comparison of Support Schemes for Renewables - German Case Study

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