New Paper about evaluating decentralised energy markets

19.11.2021

Together with colleagues from the Öko-Institut, Dierk Bauknecht published a paper in Economics of Energy and Environmental Policy on “Model-Based Evaluation of Decentralised Electricity Markets at Different Phases of the German Energy Transition” DOI: 10.5547/2160-5890.11.1.drit

This paper investigates decentralised markets in the German electricity system, defined as markets in specific regions in which regional electricity demand is met primarily by regional generation and the remaining demand is met on a system-wide level in a second step. The research question is: What impact do the size of decentralised markets and the type of authorised participants have in different phases of the energy transition? We conclude that from a system perspective decentralised markets can lead to negative effects if they are not regulated appropriately, especially during the  transformation phase of the electricity system.