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Study on Options of Improving the Electricity Network Tariff System published

The Federal Ministry for Economic Affairs and Energy (BMWi) has published the final reports on the study “Options of Improving the Electricity Network Tariff System in Germany to Support a Secure, Environmentally Sound and Economically Efficient Energy Transition”. In cooperation with Fraunhofer ISI, Consentec has examined current issues regarding incentive and cost-distribution effects of electricity network charges. On this basis, manifold options for improvement of the tariff system have been assessed with regard to their effects and feasibility. A separate report is dedicated to the expected development of network charges until 2030 for various types of network users in case the tariff system remains unchanged.


EC study on “Investment incentives in electricity and gas infrastructure in the EU”

The EU Commission has awarded a study contract to an international consortium with Consentec’s participation, aiming at analysing the national regulatory systems for electricity and gas TSOs with regard to their incentive properties for investments in innovation and security of supply. In addition to interviews with network operators and regulatory authorities, we are conducting a short survey in order to seek the view of further interested stakeholders. Interested organisations and individuals are cordially invited to participate in the survey under this link.


Consentec enhances consulting team

Effective October 2017, M.SC. Wirt.-Ing. Thaddaeus Kreisig joins the consulting team of Consentec as junior consultant.


Study on the evaluation of underground cable projects according to EnLAG and BBPlG completed

Commissioned by the Federal Ministry of Economic Affairs and Energy (BMWi), Consentec has evaluated, in cooperation with Bosch & Partner GmbH, Berlin office, and Professor Dr. jur. Hans-Joachim Koch, Hamburg, recent experience related to underground cable projects in the electricity transmission sector with respect to technical design, planning and construction processes, operation and legal aspects. The projects under review have been pilot projects provided for in the German legal acts EnLAG and BBPlG. Among others, the consortium has investigated issues related to the implementation of the Federal Government’s decision to give priority to the undergrounding of direct current lines on the extra high voltage level.


Consentec enhances consulting team

Effective May 2017, M.Sc. Wirt-Ing. Mustafa Akgül joins the consulting team of Consentec as junior consultant.


Study on the impact of new cost allocation principles on the network tariffs published

Commissioned by the Swiss Federal Office of Energy (Bundesamt für Energie, BFE), Consentec has analysed the impact of potential new arrangements for the allocation of network cost among voltage levels (vertical cost allocation) on the level of network tariffs in Switzerland. Against the background of increasing dispersed generation, BFE has designed different options of vertical cost allocation principles considering the influence of dispersed generation on the power flow situation in the network. The study analyzed the effects of these design options on the level of network usage charges and, as a consequence, on cost allocation among consumers in differently affected network areas. The final report is available on the website of BFE.


Analyzing alternative pricing methods for the tendering process of control reserve

Commissioned by the TSO Austrian Power Grid (APG) Consentec has analyzed the pricing method for the tendering process of control reserve (in this case: secondary control reserve). The analysis has investigated how pricing methods incentive the bid strategy and thus incentive the efficiency of the tendering process. Results show that a pricing method which includes a capacity price for provided reserves as well as an energy price in general is beneficial. Considering the specific situation in Austria, however, we do not recommend any change at this time. The study (in German only) presented at “Marktforum” of APG provides detailed information.


Discussion paper on §24 of the Renewable Energy Sources Act (“EEG”) (limiting market premium in the case of negative prices) published

Commissioned by the Federal Ministry for Economic Affairs and Energy (BMWi) Consentec - in cooperation with further consortium partners - has written a discussion paper on the effects of §24 EEG. This document emphasizes that the present regulation causes a negative impact on the efficiency of the RES extension without bringing about any noticeable positive effects. We therefore propose the abolition of this regulation. In case this cannot be easily realized on the European legislative level this discussion paper proposes alternative means. The paper is available on the website of the BMWi.


Study on the coordination of the use of flexibilities in power distribution networks

As part of the preparatory work on the forthcoming revision of the Electricity Supply Act the Swiss Federal Office for Energy (Bundesamt für Energie BFE) has assigned Consentec to examine the demand for and possibilities of coordination mechanisms for the use of small-scale flexibilities at the interface between market and distribution networks. The study identifies several basic coordination concepts and investigates requirements associated to these concepts in terms of processes, technical implementation, contracts as well as the legal and regulatory framework. The results are documented in the final report which has now been published by the BFE.


German Federal Ministry for Economic Affairs and Energy has published a key issues paper regarding the design of future renewable energy tenders

Today, the German Federal Ministry for Economic Affairs and Energy has published a key issues paper regarding the design of future renewable energy tenders and started a consultation on this paper. The key issues are based on the recommendations of a scientific study. Consentec in cooperation with further consortium partners has substantially contributed to this study. Key issues paper and the scientific study are available here.


Initial evaluations of the national climate-protection instrument for the German electricity market

In March 2015 Federal Minister for Economic Affairs and Energy submitted the “climate-protection instrument” as proposed regulation that aims to reduce additional greenhouse gas emissions in the German power plant fleet until 2020. This instrument has been lively debated. In the issue of June 2015 the journal “energiewirtschaftliche Tagesfragen” Consentec has undertaken a thorough analysis to the functioning of this instrument. Furthermore, Consentec has investigated the mechanism of actions and quantified possible effects by means of a self-developed market simulation.


Paper on basics and design elements of RES requests for tender published

Consentec, being part of a consortium composed of seven partners, advises the Federal Ministry for Economic Affairs and Energy (BMWi) on the design of a tender system for RES. The consortium has prepared a paper presenting the basics and the essential design elements of such tenders. The paper provides a basis for the further development of a specific design applied for RES requests for tender, foreseen in the German “EEG” as of 2017. BMWi has published the paper on its website.

Study on electricity market 2015 published

The Federal Ministry of Economics and Technology (BMWi) has published the study entitled (in German) “Leitstudie Strommarkt 2015“ (guiding study “electricity market 2015”). The study is part of an ongoing project (since 2013) which Consentec, Connect Energy Economics (main author of this study), Fraunhofer ISI and r2b energy consulting have been participating in. Important part of this publication are Consentec’s contributions concerning an improved monitoring of system adequacy and further development of control reserve markets. This study is available on the website of the BMWi.


Report on system adequacy for Germany and its neighboring countries published

Commissioned by the Federal Ministry of Economic Affairs and Energy Consentec in cooperation with r2b consulting developed a new approach for the assessment of system adequacy, giving particular importance to the possibilities and benefits of cross-border electricity exchanges. Regarding a region covering Germany and the surrounding countries connected electrically and/or geographically, load and generation are extremely likely to be balanced at any time up to 2025 considering the best-guess scenarios of the ENTSO-E on the development of load and generation. The final report (also available in English soon) published by BMWi documents the results provided by this study.


Background document for RES auctions published

The background document commissioned by Agora Energiewende and carried out by Consentec, Fraunhofer Institute for Systems and Innovation Research ISI, and the Vienna University of Technology argues on key elements regarding an effective auction design, socially and politically acceptable in an equal manner. The document has not aimed providing solutions for all issues and demands raised but pointing out options for action and identify further demand of research.


Study on economic efficiency effects of splitting bidding zones published

The exchanges EEX and Epex Spot have published a study conducted by Consentec on the effects of splitting the bidding zones for the European electricity market. The study investigated the joint German-Austrian bidding-zone in particular. The study concludes that smaller bidding zones are not reasonable if simultaneously a grid extension is worthwhile in order to provide for a remedy to bottlenecks within the zones. The study is available on the website of the EEX.