Market Conditions and Regulation Challenges Economic, environmentally compatible and secure electricity supply

The transformation of the energy system has the potential to trigger a considerable economic impact. It is therefore all the more important to examine regulations as well as promotion and steering measures not only with a view to their direct costs and benefits, but also to take account of their indirect effects.

The various measures with which an expansion of renewable energy can be achieved differ in terms of their effectiveness, costs and indirect consequences. The NRP “Energy” investigated the opportunities offered by the market, promotion models and a CO₂ tax.

To ensure a sufficient supply of electricity throughout the year is available at the required quality and appropriate rates in a transformed energy system, two key challenges must be overcome: the seasonal and the short-term volatility of solar and wind energy.

The expansion of renewable energy requires more flexible transmission and distribution grids that can deal with decentralisation and greater production volatility. At the same time, the grids need to be made intelligent to allow for transparent monitoring and dynamic tariffs.