A welfare analysis of electricity transmission planning in Germany

Claudia Kemfert, Friedrich Kunz and Juan Rosellon

Energy Policy, 2016, vol. 94, issue C, 446-452

Abstract: We analyze the electricity transmission planning process in Germany (Netzentwicklungsplan), which separates transmission expansion decisions from generation dispatch. We employ an economic modeling approach to analyze two different network planning settings. In the first setting, there is no trade-off between transmission network development and generation dispatch, as is currently the case in Germany. A second setting alternatively allows for such a trade-off, and thus represents a welfare superior way of transmission network planning. Applications with the two model variants are carried out for the German electricity system in 2035. The results illustrate overinvestment in transmission capacity and decreased welfare associated with the Netzentwicklungsplan.

Keywords: Transmission planning; Nodal prices; Congestion management; Electricity; Germany (search for similar items in EconPapers)
JEL-codes: L50 L94 Q40 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:94:y:2016:i:c:p:446-452

DOI: 10.1016/j.enpol.2016.04.011

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