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

Carsten Croonenbroeck and David Hennecke

Energy Policy, 2020, vol. 144, issue C

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.

Keywords: Wind power; Yield; Incentives; Spatial analysis (search for similar items in EconPapers)
JEL-codes: C21 P18 Q28 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:144:y:2020:i:c:s030142152030392x

DOI: 10.1016/j.enpol.2020.111663

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