Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272222 
Year of Publication: 
2023
Series/Report no.: 
DIW Discussion Papers No. 2035
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
Renewable energy installations are rapidly gaining market share due to falling technology costs and supportive policies. Meanwhile, the energy price crisis resulting from the Russian-Ukrainian war has shifted the energy policy debate toward the question of how consumers can benefit more from the low and stable generation costs of renewable electricity. Here we suggest a Renewable Pool ('RE-Pool') under which the government passes the conditions of Contracts-for-Difference on to consumers who thereby benefit from reliably low-cost electricity supply. We assess the effect on financing costs, scale, and system friendliness of wind investments, as well risk hedging for consumers' volume risks and hedging incentives.
Subjects: 
Contracts-for-Difference
Renewable Policy
Electricity markets
Financing
PPA
JEL: 
D44
D47
G32
L94
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.