IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i23p8991-d986441.html
   My bibliography  Save this article

How Dependent Are European Power Systems and Economies on Natural Gas?—A Macroeconomic Optimization for Security of Electricity Supply

Author

Listed:
  • Christina Kockel

    (Institute for Future Energy Consumer Needs and Behavior (FCN), RWTH Aachen University, 52074 Aachen, Germany)

  • Lars Nolting

    (Institute for Future Energy Consumer Needs and Behavior (FCN), RWTH Aachen University, 52074 Aachen, Germany)

  • Kevin Pacco

    (Institute for High Voltage Equipment and Grids, Digitalization and Energy Economics (IAEW), RWTH Aachen University, 52062 Aachen, Germany)

  • Carlo Schmitt

    (Institute for High Voltage Equipment and Grids, Digitalization and Energy Economics (IAEW), RWTH Aachen University, 52062 Aachen, Germany)

  • Albert Moser

    (Institute for High Voltage Equipment and Grids, Digitalization and Energy Economics (IAEW), RWTH Aachen University, 52062 Aachen, Germany)

  • Aaron Praktiknjo

    (Institute for Future Energy Consumer Needs and Behavior (FCN), RWTH Aachen University, 52074 Aachen, Germany)

Abstract

How dependent are European power systems and economies on natural gas? To answer this pressing question, we coupled a simulation model for assessing security of electricity supply and an economic optimization model. With this, we were able to analyze different reduction scenarios of the amount of gas utilized in the power sector. Our results show that reducing the amount of natural gas in the European power sector by up to 30% has a relatively moderate impact on the security of electricity supply. Restrictions of 40% or more result in substantially higher reductions in electricity demand shortfall and are associated with economic costs of more than EUR 77 billion. Furthermore, we demonstrate that a close coordination of gas distribution on a European level would be instrumental in mitigating negative economic consequences. Finally, it can be deduced that a coordinated delay of planned power plant shutdowns could effectively compensate for reduced gas volumes in the electricity sector.

Suggested Citation

  • Christina Kockel & Lars Nolting & Kevin Pacco & Carlo Schmitt & Albert Moser & Aaron Praktiknjo, 2022. "How Dependent Are European Power Systems and Economies on Natural Gas?—A Macroeconomic Optimization for Security of Electricity Supply," Energies, MDPI, vol. 15(23), pages 1-12, November.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:23:p:8991-:d:986441
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/23/8991/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/23/8991/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Praktiknjo, Aaron J., 2014. "Stated preferences based estimation of power interruption costs in private households: An example from Germany," Energy, Elsevier, vol. 76(C), pages 82-90.
    2. Aaron Praktiknjo, 2016. "The Value of Lost Load for Sectoral Load Shedding Measures: The German Case with 51 Sectors," Energies, MDPI, vol. 9(2), pages 1-17, February.
    3. Nolting, Lars & Praktiknjo, Aaron, 2020. "Can we phase-out all of them? Probabilistic assessments of security of electricity supply for the German case," Applied Energy, Elsevier, vol. 263(C).
    4. Praktiknjo, Aaron J. & Hähnel, Alexander & Erdmann, Georg, 2011. "Assessing energy supply security: Outage costs in private households," Energy Policy, Elsevier, vol. 39(12), pages 7825-7833.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elie Bouri & Joseph El Assad, 2016. "The Lebanese Electricity Woes: An Estimation of the Economical Costs of Power Interruptions," Energies, MDPI, vol. 9(8), pages 1-12, July.
    2. Jin, Taeyoung & Lee, Tae Eui & Kim, Dowon, 2023. "Value of lost load estimation for the South Korea's manufacturing sector—finding the gap between the supply and demand side," Renewable and Sustainable Energy Reviews, Elsevier, vol. 187(C).
    3. Amoah, Anthony & Ferrini, Silvia & Schaafsma, Marije, 2019. "Electricity outages in Ghana: Are contingent valuation estimates valid?," Energy Policy, Elsevier, vol. 135(C).
    4. Frondel Manuel & Sommer Stephan, 2017. "Der Wert von Versorgungssicherheit mit Strom: Evidenz für deutsche Haushalte," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 66(3), pages 294-317, December.
    5. Becker, Sophia & Schober, Dominik & Wassermann, Sandra, 2016. "How to approach consumers’ nonmonetary evaluation of electricity supply security? The case of Germany from a multidisciplinary perspective," Utilities Policy, Elsevier, vol. 42(C), pages 74-84.
    6. Madia Safdar & Ghulam Amjad Hussain & Matti Lehtonen, 2019. "Costs of Demand Response from Residential Customers’ Perspective," Energies, MDPI, vol. 12(9), pages 1-16, April.
    7. Nolting, Lars & Praktiknjo, Aaron, 2020. "Can we phase-out all of them? Probabilistic assessments of security of electricity supply for the German case," Applied Energy, Elsevier, vol. 263(C).
    8. Ruhnau, Oliver & Hirth, Lion & Praktiknjo, Aaron, 2020. "Heating with wind: Economics of heat pumps and variable renewables," Energy Economics, Elsevier, vol. 92(C).
    9. Jean-Claude Berthélemy & Arnaud Millien, 2018. "Impact of Decentralized Electrification Projects on Sustainable Development: A Meta-Analysis," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01922517, HAL.
    10. Nolting, Lars & Praktiknjo, Aaron, 2022. "The complexity dilemma – Insights from security of electricity supply assessments," Energy, Elsevier, vol. 241(C).
    11. Christian Growitsch & Raimund Malischek & Sebastian Nick & Heike Wetzel, 2015. "The Costs of Power Interruptions in Germany: A Regional and Sectoral Analysis," German Economic Review, Verein für Socialpolitik, vol. 16(3), pages 307-323, August.
    12. Alexandros Korkovelos & Dimitrios Mentis & Morgan Bazilian & Mark Howells & Anwar Saraj & Sulaiman Fayez Hotaki & Fanny Missfeldt-Ringius, 2020. "Supporting Electrification Policy in Fragile States: A Conflict-Adjusted Geospatial Least Cost Approach for Afghanistan," Sustainability, MDPI, vol. 12(3), pages 1-34, January.
    13. Charlotte Senkpiel & Audrey Dobbins & Christina Kockel & Jan Steinbach & Ulrich Fahl & Farina Wille & Joachim Globisch & Sandra Wassermann & Bert Droste-Franke & Wolfgang Hauser & Claudia Hofer & Lars, 2020. "Integrating Methods and Empirical Findings from Social and Behavioural Sciences into Energy System Models—Motivation and Possible Approaches," Energies, MDPI, vol. 13(18), pages 1-30, September.
    14. Landegren, Finn & Johansson, Jonas & Samuelsson, Olof, 2019. "Quality of supply regulations versus societal priorities regarding electricity outage consequences: Case study in a Swedish context," International Journal of Critical Infrastructure Protection, Elsevier, vol. 26(C).
    15. Parlane, Sarah & Ryan, Lisa, 2020. "Optimal contracts for renewable electricity," Energy Economics, Elsevier, vol. 91(C).
    16. Bhagwat, Pradyumna C. & Marcheselli, Anna & Richstein, Jörn C. & Chappin, Emile J.L. & De Vries, Laurens J., 2017. "An analysis of a forward capacity market with long-term contracts," Energy Policy, Elsevier, vol. 111(C), pages 255-267.
    17. Paul Nduhuura & Matthias Garschagen & Abdellatif Zerga, 2021. "Impacts of Electricity Outages in Urban Households in Developing Countries: A Case of Accra, Ghana," Energies, MDPI, vol. 14(12), pages 1-26, June.
    18. Frondel Manuel & Sommer Stephan & Tomberg Lukas, 2019. "Versorgungssicherheit mit Strom: Empirische Evidenz auf Basis der Inferred-Valuation-Methode," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 68(1), pages 53-73, May.
    19. Manuel Frondel & Stephan Sommer & Lukas Tomberg, 2021. "WTA-WTP Disparity: The Role of Perceived Realism of the Valuation Setting," Land Economics, University of Wisconsin Press, vol. 97(1), pages 196-206.
    20. Bhagwat, Pradyumna C. & Richstein, Jörn C. & Chappin, Emile J.L. & de Vries, Laurens J., 2016. "The effectiveness of a strategic reserve in the presence of a high portfolio share of renewable energy sources," Utilities Policy, Elsevier, vol. 39(C), pages 13-28.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:15:y:2022:i:23:p:8991-:d:986441. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.