Risk and Return Management for the Heat Transition in Germany

Abstract

The doctoral thesis deals with investment risk and return management for the heat transition. Energy efficiency measures and especially energetic retrofitting investments bear great risk, owing to incorrect planning, incorrect implementation, and inappropriate user behavior. Moreover, external risks like volatile energy prices and weather effects also have a major impact on the energy efficiency investment’s profitability. To address these risks, the presented research papers provide the scientific basis for the market introduction of energy efficiency insurance products'. In exchange for a premium payment, an energy efficiency insurance guarantees an energy efficiency investment's predefined financial performance, such as minimum energy bill savings or maximum energy bill costs. To achieve this goal, the thesis provides an approach for pricing energy efficiency insurance premiums and analyzing diversification effects in a portfolio context, as well as providing models for the individual risk assessment of energy efficiency insurance contracts and landlord-to-tenant electricity supply investments