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Biogas plants and surplus generation: Cost driver or reducer in the future German electricity system?

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  • Lauer, Markus
  • Thrän, Daniela

Abstract

The proportion of (intermittent) renewable energy in the German electricity system is set to continuously increase over the next decades. This brings along with it the challenge of balancing demand and supply. For this paper, we analyzed the cost efficiency of reducing surplus generation to reduce greenhouse gas emissions in the German electricity system for the period of 2016–2035 through (flexible) biogas plants, taking into consideration different biogas extension paths and modes of operation. We assessed flexible power generation in biogas plants using a quotient of remuneration and surplus generation called the average integration costs of surplus generation (AICSG). We defined the AICSG, which can be interpreted as a new approach to assess and to compare the cost efficiency of flexibility options. Increasing the capacities of flexible biogas plants decreases future surplus generation by up to 35% compared to if these installments were phased out. The best AICSG value was generated in a scenario that had a low rate of constructing new biogas plants. In conclusion, the system integration of intermittent renewable energies requires further technologies that result in additional costs. Therefore, biogas plants are one option for improving the system integration of intermittent renewable energies.

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  • Lauer, Markus & Thrän, Daniela, 2017. "Biogas plants and surplus generation: Cost driver or reducer in the future German electricity system?," Energy Policy, Elsevier, vol. 109(C), pages 324-336.
    • Handle: RePEc:eee:enepol:v:109:y:2017:i:c:p:324-336
    DOI: 10.1016/j.enpol.2017.07.016
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    3. Lauer, Markus & Leprich, Uwe & Thrän, Daniela, 2020. "Economic assessment of flexible power generation from biogas plants in Germany's future electricity system," Renewable Energy, Elsevier, vol. 146(C), pages 1471-1485.
    4. Vannahme, Anna & Ehrenwirth, Mathias & Schrag, Tobias, 2024. "Development and application of a guideline for assessing optimization potentials for district heating systems," Energy, Elsevier, vol. 297(C).
    5. Yiyun Liu & Jun Wu & Jianjun Li & Jingjing Huang, 2023. "The Diffusion Rule of Demand-Oriented Biogas Supply in Distributed Renewable Energy System: An Evolutionary Game-Based Approach," Sustainability, MDPI, vol. 15(19), pages 1-16, September.
    6. Balibrea-Iniesta, José & Rodríguez-Monroy, Carlos & Núñez-Guerrero, Yilsy María, 2021. "Economic analysis of the German regulation for electrical generation projects from biogas applying the theory of real options," Energy, Elsevier, vol. 231(C).
    7. Lauven, Lars-Peter & Geldermann, Jutta & Desideri, Umberto, 2019. "Estimating the revenue potential of flexible biogas plants in the power sector," Energy Policy, Elsevier, vol. 128(C), pages 402-410.
    8. Dotzauer, Martin & Pfeiffer, Diana & Lauer, Markus & Pohl, Marcel & Mauky, Eric & Bär, Katharina & Sonnleitner, Matthias & Zörner, Wilfried & Hudde, Jessica & Schwarz, Björn & Faßauer, Burkhardt & Dah, 2019. "How to measure flexibility – Performance indicators for demand driven power generation from biogas plants," Renewable Energy, Elsevier, vol. 134(C), pages 135-146.
    9. Weinand, Jann & McKenna, Russell & Karner, Katharina & Braun, Lorenz & Herbes, Carsten, 2018. "Assessing the potential contribution of excess heat from biogas plants towards decarbonising German residential heating," Working Paper Series in Production and Energy 31, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    10. Parvez, Ashak Mahmud & Lewis, Jonathan David & Afzal, Muhammad T., 2021. "Potential of industrial hemp (Cannabis sativa L.) for bioenergy production in Canada: Status, challenges and outlook," Renewable and Sustainable Energy Reviews, Elsevier, vol. 141(C).

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