Skip to main content

Moving Towards Sustainable Electricity Systems

  • Chapter
  • First Online:
Economics of Power Systems

Abstract

This final chapter aims at distilling key issues for the move towards sustainable electricity systems. Thereby, the focus is on greenhouse gas (GHG) emission reductions to achieve the objectives of the Paris Agreement in the context of the current trends of decentralisation, digitisation as well as acceptance and participation. The general decision alternatives and challenges in decarbonisation are addressed first. Then, more specifically, three domains are scrutinised where specific challenges arise: balancing supply and demand, grid operation and development and prosumer integration and network tariffication. For each field, key challenges are identified followed by the technical solutions available or still to be developed. Then, regulatory and market-based concepts for overcoming the challenges are discussed along with political and societal aspects to be addressed. Against this setting, modelling approaches are highlighted that may be used to provide decision support – referring here as in the earlier sections back to the corresponding sections of the previous chapters. To conclude, some key insights are proposed – not with the intention to provide definitive answers on the issues at stake, but rather to indicate starting points to the readers for their in-depth investigations.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 64.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 89.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    See Sect. 6.2 for a discussion why this is difficult.

  2. 2.

    We use the technical term decarbonisation here being aware that the ultimate target is a defossilisation.

  3. 3.

    The broad range of required emission reduction refers to the 10th and 90th percentiles of the scenarios of the IPCC (2014).

  4. 4.

    Inertia is a property of (rotating) masses such as large synchronous generators in conventional power plants. It may be understood as a resistance to any change in velocity. As such it limits the short-term impact of imbalances between power supply and demand for electric power systems. This is similar to the effect of the mass of a car (or other vehicle) when the brakes are activated: the inertia associated with the mass of the car prevents the car from stopping immediately under the action of the brakes – and ditto the speeding up under the effect of the accelerator is limited.

  5. 5.

    The interested reader is referred to Zipf (2021, Chap. 6), where the topic of reserve dimensioning is quantitatively assessed.

  6. 6.

    Of course, also so-called “renewable pull” – meaning that the availability of renewable power attracts new industries (e.g. the high renewable energy availability in Brandenburg is sometimes referred as one important factor for the location selection of the Tesla factory, however, energy is likely to be just a minor factor in this decision) – can result in an increased demand close to attractive renewable sites. Although, renewable pull is an interesting research field from various research perspectives, the effects on the energy system are limited, so that they are not further elaborated here.

  7. 7.

    NIMBY characterizes an opposition or resistance by residents against proposed developments in their local area.

  8. 8.

    Not only redispatch related to grid necessities can result in curtailment, also a market-based curtailment may happen, if e.g. electricity prices are below zero.

  9. 9.

    For example in Germany, congestions in the grids especially occur for the transport of energy from north (high wind capacity) to south. Consequently, grid extensions are planned (documented in the grid development plans) and are to be realized to a large extent by new HVDC corridors from north to south (see also Sects. 5.1.1.2 and 5.1.3.2).

  10. 10.

    Static VAR compensators are electrical devices for providing fast-acting reactive power on high-voltage electricity transmission networks. VAR indicates that reactive power is provided as it just refers to the unit Volt-Ampere Reactive. The term static expresses that the compensation takes place without the use of rotating machines such as three-phase synchronous machines in phase shifter operation.

  11. 11.

    Switzerland has a very high share of hydropower generation, including numerous small-scale plants. Further studies may investigate to what extent the Swiss approach is thus transferable to other countries in Europe and beyond.

References

  • Angerer, G., Buchholz, P., Gutzmer, J., Hagelüken, C., Herzig, P., Littke, R., Thauer, R., & Wellmer, F. (2016). Rohstoffe für die Energieversorgung der Zukunft: Geologie – Märkte – Umwelteinflüsse. Schriftenreihe Energiesysteme der Zukunft. Available at: https://energiesysteme-zukunft.de/fileadmin/user_upload/Publikationen/PDFs/ESYS_Analyse_Rohstoffe_fuer_die_Energieversorgung.pdf [Accessed May 26, 2022].

  • Ball, M., & Wietschel, M. (2010). The hydrogen economy: Opportunities and challenges. Cambridge University Press.

    Google Scholar 

  • Bucksteeg, M., Niesen, L., & Weber, C. (2016). Impacts of dynamic probabilistic reserve sizing techniques on reserve requirements and system costs. IEEE Transactions on Sustainable Energy, 1408–1420.

    Google Scholar 

  • Dallinger, B., Auer, H., & Lettner, G. (2016). Impact of harmonised common balancing capacity procurement in selected Central European electricity balancing markets. Applied Energy, 222, 351–368.

    Google Scholar 

  • Di Silvestre, M. L., Favuzza, S., Riva Sanseverino, E., & Zizzo, G. (2018). How decarbonization, digitalization and decentralization are changing key power infrastructures. Renewable and Sustainable Energy Reviews, 93, 483–498.

    Google Scholar 

  • EC. (2017a). Commission Regulation (EU) 2017/2195 establishing a guideline on electricity balancing. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2017.312.01.0006.01.ENG&toc=OJ:L:2017:312:TOC [Accessed January 11, 2021].

  • EC. (2017b). Study on the review of the list of critical raw materials. European Commission. Available at: https://op.europa.eu/s/oNqH [Accessed June 16, 2022].

  • EY. (2019). Decarbonization, digitization and decentralization are accelerating the countdown to a new energy world faster than expected. Available at: https://www.ey.com/en_gl/news/2019/07/decarbonization-digitization-and-decentralization-are-accelerating-the-countdown-to-a-new-energy-world-faster-than-expected [Accessed February 7, 2020].

  • Felling, T., Leisen, R., Podewski, C., & Weber, C. (2019). Evaluation of risks for electricity generation companies through reconfiguration of bidding zones in extended Central Western Europe. The Energy Journal, 40(SI), 81–104.

    Google Scholar 

  • Fraunholz, C., Bublitz, A., Keles, D., & Fichtner, W. (2021a). Impact of electricity market designs on investments in flexibility options. In D. Möst, S. Schreiber, A. Herbst, M. Jakob, A. Martino, & W. Poganietz (Eds.), The future European energy system—Renewable energy, flexibility options and technological progress (pp. 199–218). Springer.

    Google Scholar 

  • Fraunholz, C., Hladik, D., Keles, D., Möst, D., & Fichtner, W. (2021b). On the long-term efficiency of market splitting in Germany. Energy Policy, art. 111833.

    Google Scholar 

  • Fulli, G., Masera, M., Spisto, A., & Vitiello, S. (2019). A change is coming: How regulation and innovation are reshaping the European Union’s electricity markets. IEEE Power and Energy Magazine, 17(1), 53–66.

    Google Scholar 

  • Giurco, D., Dominish, E., Florin, N., Watari, T., & McLellan, B. (2019). Requirements for minerals and metals for 100% renewable scenarios. In S. Teske (Ed.), Achieving the Paris climate agreement goals (pp. 437–457). Springer.

    Google Scholar 

  • Gunkel, D. (2020). Einflussfaktoren auf das Übertragungsnetz im Jahr 2030 für Deutschland - Eine technoökonomische Analyse der Wechselwirkungen auf den Umfang des Netzausbaus, die Systemkosten und die Integration erneuerbarer Energien (Vol. 17). Series of the Chair of Energy Economics. Available at: https://nbn-resolving.org/urn:nbn:de:bsz:14-qucosa2-716026 [Accessed May 26, 2022].

  • Hinz, F. (2017). Voltage stability and reactive power provision in a decentralizing energy system (Vol. 12). Series of the Chair of Energy Economics and Dissertation: Technische Universität Dresden. Available at: http://nbn-resolving.de/urn:nbn:de:bsz:14-qucosa-229585 [Accessed May 27, 2022].

  • Hinz, F., & Möst, D. (2018). Techno-economic evaluation of 110 kV grid reactive power support for the transmission grid. IEEE Transactions on Power Systems, 33, 4809–4818.

    Google Scholar 

  • IPCC. (2014). Climate change 2014: Synthesis report. Contribution of Working Groups I, II and III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change. Available at: https://www.ipcc.ch/site/assets/uploads/2018/02/SYR_AR5_FINAL_full.pdf [Accessed February 8, 2020].

  • Joint Research Centre, Institute for Energy and Transport, Tercero, E., Bryson, R., Chapman, A., et al. (2014). Critical metals in the path towards the decarbonisation of the EU energy sector: Assessing rare metals as supply-chain bottlenecks in low-carbon energy technologies. Publications Office. Available at: https://data.europa.eu/doi/10.2790/46338 [Accessed June 16, 2022].

  • Kunz, F. (2012). Managing congestion and intermittent renewable generation in liberalized electricity markets (Vol. 1). Series of the Chair of Energy Economics and Dissertation: Technische Universität Dresden, TU Dresden. Available at: http://nbn-resolving.de/urn:nbn:de:bsz:14-qucosa-108793 [Accessed May 27, 2022].

  • Larscheid, P., Taylor, K., van Leeuwen, T., Moser, A., & Hermes, R. (2018). Modelling reactive power demand of distribution grids subjected to renewable energy sources. In IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT-Europe).

    Google Scholar 

  • Leopoldina, acatech & Union der Akademien der Wissenschaften. (2020). Zentrale und dezentrale Elemente im Energiesystem: Der richtige Mix für eine stabile und nachhaltige Versorgung (115 p). Nationale Akademie der Wissenschaften Leopoldina, acatech – Deutsche Akademie der Technikwissenschaften und Union der deutschen Akademien der Wissenschaften. ISBN: 978-3-8047-4060-0.

    Google Scholar 

  • Linvill, C., & Lazar, C. (2018). Smart non-residential rate design: Aligning rates with system value. The Electricity Journal, 31(8), 1–8. https://doi.org/10.1016/j.tej.2018.09.011

  • Local Energy Consulting. (2020). Akzeptanz und lokale Teilhabe in der Energiewende. Handlungsempfehlungen für eine umfassende Akzeptanzpolitik. im Auftrag von Agora Energiewende. Agora Energiewende. Available at: https://static.agora-energiewende.de/fileadmin/Projekte/2020/2020_07_EE-Akzeptanz/182_A-EW_Akzeptanz-Energiewende_WEB.pdf [Accessed May 27, 2022].

  • Moss, R., Tzimas, E., Kara, H., Willis, P., & Kooroshy, J. (2011). Critical metals in strategic energy technologies. JRC Scientific and Technical Reports. Available at: https://setis.ec.europa.eu/document/download/7b6d43a5-a227-4283-b345-ccb0c3f6a0a5_en?filename=CriticalMetalsinStrategicEnergyTechnologies-def.pdf [Accessed May 27, 2022].

  • Möst, D., Schreiber, S., Herbst, A., Jakob, M., Martino, A., & Poganietz, W. (Eds.). (2021). The future European energy system—Renewable energy, flexibility options and technological progress. Springer.

    Google Scholar 

  • Müller, T., Gunkel, D., & Möst, D. (2013). How does renewable curtailment influence the need of transmission and storage capacities in Europe? In IAEE: Proceedings of the 13th European IAEE Conference.

    Google Scholar 

  • Neuhoff, K., Hobbs, B., & Newbery, D. (2011). Congestion management in European power networks: Criteria to assess the available options. Smart Power Market Project. Available at: https://climatepolicyinitiative.org/wp-content/uploads/2011/12/Congestion-Management-Paper.pdf [Accessed May 26, 2022].

  • Perlaviciute, G., Schuitema, G., Devine-Wright, P., & Ram, B. (2018). At the heart of a sustainable energy transition: The public acceptability of energy projects. IEEE Power and Energy Magazine, 16(1), 49–55.

    Google Scholar 

  • Perras, S. (2015). Electricity transmission line planning: Success factors for transmission system operators to reduce public opposition. Series of the chair of Energy Economics and Dissertation: Technische Universität Dresden. Available at: http://nbn-resolving.de/urn:nbn:de:bsz:14-qucosa-161770 [Accessed May 26, 2022].

  • Seljom, P., & Tomasgard, A. (2015). Short-term uncertainty in long-term energy system models—A case study of wind power in Denmark. Energy Economics, 49, 157–167.

    Google Scholar 

  • Thomsen, J., & Weber, C. (2021). Getting prices for prosumers right? Incentivizing investment and operation of small-scale PV-battery storage systems through prices, charges and levies. Zeitschrift für Energiewirtschaft, 45, 35–59.

    Google Scholar 

  • Ulbig, A., Borsche, T. S., & Andersson, G. (2014). Impact of low rotational inertia on power system stability and operation. IFAC Proceedings Volumes, 47, 7290–7297.

    Google Scholar 

  • UN. (2015). Paris agreement. United Nations. Available at: https://unfccc.int/sites/default/files/english_paris_agreement.pdf [Accessed February 15, 2021].

  • Viebahn, P., et al. (2015). Assessing the need for critical minerals to shift the German energy system towards a high proportion of renewables. Renewable and Sustainable Energy Reviews, 49, 655–671.

    Google Scholar 

  • Wellmer, F., & Dalheimer, M. (2012). The feedback control cycle as regulator of past and future mineral supply. Mineralium Deposita, 47, 713–729.

    Google Scholar 

  • Wüstenhagen, R., Wolsink, M., & Bürer, M. J. (2007). Social acceptance of renewable energy innovation: An introduction to the concept. Energy Policy, 35, 2683–2691.

    Google Scholar 

  • Zipf, M. (2020). Economics of ancillary services for electricity—Managing uncertain power generation and grid operation in the distribution network (Vol. 20). Series of the Chair of Energy Economics. Available at: https://nbn-resolving.org/urn:nbn:de:bsz:14-qucosa2-751856 [Accessed May 27, 2022].

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Christoph Weber .

Rights and permissions

Reprints and permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Weber, C., Möst, D., Fichtner, W. (2022). Moving Towards Sustainable Electricity Systems. In: Economics of Power Systems. Springer Texts in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-97770-2_12

Download citation

Publish with us

Policies and ethics