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Does the German renewable energy act provide a fair incentive system for onshore wind power? — A simulation analysis

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  • Croonenbroeck, Carsten
  • Hennecke, David

Abstract

We assess the German renewable energy incentive system for onshore wind power installations and provide a spatial profitability analysis for any given point in Germany. As it turns out, the system seems to favor certain types of facilities, dependent on the wind conditions at the site. We therefore narrow the focus down and analyze a limited set of locations selected at random. Here, we use a simulation analysis to assess the sensitivity of profitability on wind speeds, hub heights, and turbine types. Results show that increasing hub heights are not generally increasingly profitable — on the contrary, the German incentive system rather tends to favor lower hub heights. Also, the selected turbine type still has its impact on profitability — not at a great magnitude, but nevertheless gaugeable. In conclusion, the German renewable energy support system might be somewhat off target, as it possesses possibly unwanted side effects of which policy makers may not be aware.

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  • Croonenbroeck, Carsten & Hennecke, David, 2020. "Does the German renewable energy act provide a fair incentive system for onshore wind power? — A simulation analysis," Energy Policy, Elsevier, vol. 144(C).
    • Handle: RePEc:eee:enepol:v:144:y:2020:i:c:s030142152030392x
    DOI: 10.1016/j.enpol.2020.111663
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    References listed on IDEAS

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    Cited by:

    1. Croonenbroeck, Carsten & Hennecke, David, 2021. "A comparison of optimizers in a unified standard for optimization on wind farm layout optimization," Energy, Elsevier, vol. 216(C).
    2. Kuznetsov, G.V. & Malyshev, D. Yu & Syrodoy, S.V. & Gutareva, N. Yu & Purin, M.V. & Kostoreva, Zh. A., 2022. "Justification of the use of forest waste in the power industry as one of the components OF BIO-coal-water suspension fuel," Energy, Elsevier, vol. 239(PA).
    3. del Río, Pablo & Kiefer, Christoph P., 2023. "Academic research on renewable electricity auctions: Taking stock and looking forward," Energy Policy, Elsevier, vol. 173(C).
    4. Kiunke, Theresa & Gemignani, Natalia & Malheiro, Pedro & Brudermann, Thomas, 2022. "Key factors influencing onshore wind energy development: A case study from the German North Sea region," Energy Policy, Elsevier, vol. 165(C).

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    More about this item

    Keywords

    Wind power; Yield; Incentives; Spatial analysis;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment

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