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Prosumage of solar electricity: pros, cons, and the system perspective

Wolf-Peter Schill, Alexander Zerrahn, and Friedrich Kunz
Authors registered in the RePEc Author Service: Alexander Zerrahn, Friedrich Kunz and Wolf-Peter Schill ()

Economics of Energy & Environmental Policy, 2017, vol. Volume 6, issue Number 1

Abstract: We examine the role of prosumage of solar electricity, i.e. PV self-generation combined with distributed storage, in the context of the low-carbon energy transformation. First, we devise a qualitative account of arguments in favor of and against prosumage. Second, we give an overview of prosumage in Germany. Prosumage will likely gain momentum as support payments expire for an increasing share of PV capacities after 2020. Third, we model possible system effects in a German 2035 scenario. Prosumage batteries allow for a notable substitution of other storage facilities only if fully available for market interactions. System-friendly operation would also help limiting cost increases. We conclude that policymakers should not unnecessarily restrict prosumage, but consider system and distributional aspects.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2017
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