What are the advantages of using grid parity analysis method in the electricity markets (e.g. for renewable energy based electricity generation)? (Points = 7)
Point at which costs of RE become as competetive with cost of conventional energy sources
win point foreseeable for investors
provides feedback on whether policy support measures are successful, indicator for improvement potentials
graphs allow visual analysis
comparability of technologies in different countries
analysis of electricity price development
learning investment can be determined
indicator for profitability of RE projects for investors
argumentation for RE and against conventional/fossil fuels
costs over entire life cycle are schown
What are the challenges (or drawbacks) of using levelized cost of electricity as the electricity sales tariff in off-grid rural-electrification projects in developing countries? (Points: = 5)
environmental influences and local conditions not included
political systems in developing countries unstable
data collction problematic
lack of technical know-how
scarce financial resources on inhabitants
developing countries not comparable with industrialized
(island) power grid must be considered as a cost item
inflexible pricing —> special areas of application require special pricing
How are the external costs (externalities) of electricity generation (mainly from technologies using non-renewable resources) going to affect the future electricity market? Write your opinion with corresponding reasons. (Points: = 5)
- Shift towards renewable energy
- Regulatory changes
- Cost considerations
- Technological innovation
- Investment and financing
- Consumer preferences
—> external costs of electricity generation from non-renewable resources are expected to drive significant changes in the future electricity market
—> leading to a transition towards cleaner, more sustainable energy sources
—> Governments, businesses, investors, and consumers all play a role in shaping this transition by internalizing externalities, promoting renewable energy, and fostering innovation in clean energy technologies
Define the price elasticity of demand with the help of sketches – each sketch for unit elastic demand, inelastic demand and elastic demand.
Elasticity of demand
Measures how much the quantity demanded of a good or service responds to changes in price (wie sehr reagiert die nachgefragte Menge auf Preisänderungen)
Elastic: amount of change in demand when other economic factors had changed, f.e. market-prices or salaries. —> f.e. Wallboxes; pv-batteries (high amount of liberalization & competition)
Inelastic: Refers to a constantly unchanged amount of demand f.e. for services or goods even when market-prices rise or fall. —> f.e. Gasoline prices; electricity prices (especially in Germany)
Unit-elastic demand: amount of demand changes in the same proportion to its market-price (percentage change of demand is equal to percentage change of price). —> rarely phenomenon – f.e. renewable energy certificates (REC)
Using the demand-supply sketch explain the cases how, i) government subsidy and ii) government tax affect the petroleum price to the end users in the market of developing countries (where the energy market is not yet liberalized)? Discuss the market consequences in both case. (points: 2 + 2 + 2 = 6)
Background: Liberalized energy market in GER: Opening the energy market to non-governmental organizations/Market participants
Do you see the relevant application of Boston Consulting Matrix (growth share matrix) for product portfolio analysis in energy sector? Explain your opinion with reasons. (points: 7)
Relevant application of „growth share matrix“ for product portfolio analysis in Energy sector:
- To maintain the company's liquidity (cash flow)
- Decision support for investments in own generation units
- Helpful for strategic business planning
- Portfolio management
- Risk management
- Economic comparison with competitors via sales (quantity)
Limitations:
- Complexity of the energy sector
- Long term orientation (matrix focuses on short term market shares and may not reflect long term development)
Describe the “net metering” instrument of energy policy using an example of a renewable resource based electricity generation system. Why net metering (in its standard form) is not the appropriate instrument for solar PV and wind electricity support in Germany? (points: 6 + 4 = 10)
- energy policy instrument that allows consumers to feed the energy they generate from renewable sources such as solar or wind power into the electricity grid and receive compensation for it
- At the same time, they can offset the energy they draw from the grid with the energy they generate, reducing their electricity bills or even bringing them down to zero
Not appropriate for solar PV and wind energy in Germany
- the amount feed in potential of generated electricity of prosumers are limitied by EEG due the government —> not a real business case in Germany
- Feed-in Tariff System: standard net metering only allows consumers to offset their generated and consumed electricity at a specific rate, without considering a specific feed-in tariff.
- Grid Fees and Levies: In Germany, electricity tariffs are not solely based on the energy price but also include various grid fees and levies. Standard net metering may not account for these additional costs associated with electricity usage, potentially resulting in consumers not receiving the full value for their fed-in electricity or incurring additional costs for system management.
What are the main challenges of using the “indicators based method” for analysing the “sustainability of energy systems”. (points: 5)
- Indicators must be individual for each project
- From themes, indicators must be selected that are comparable across projects, uniformly weighted, and integrated into the project —> challenging to present the sustainability of projects in a comparable manner
Complexity and Interconnectedness
Data Availability and Quality
Indicator Selection and Weighting
Context Sensitivity
Temporal and Spatial Dynamics
Synergies
Policy Implications
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