Philipp Massier

Bio: Philipp Massier is an academic researcher from Zentrum für Europäische Wirtschaftsforschung. The author has contributed to research in topics: European union & Electricity market. The author has an hindex of 7, co-authored 18 publications receiving 122 citations.

The future of the energy transition in Germany

Abstract: Although the goals of the country’s energy transition (Energiewende) are widely accepted in Germany, the specific route to get there is itself a matter of great controversy The individual measures that are part of the energy transition policy and the questions of how they interact and how they are embedded in the European context are objects of controversial scientific and public debate Most recently, the consequences for the price of electricity have, in particular, been discussed intensely Against this backdrop of wide-ranging criticism, the future course for promoting renewable energy will soon be set The German Renewable Energy Sources Act (the Erneuerbare-Energien-Gesetz, EEG), which is the main instrument of energy transition policy with its feed-in tariffs, is supposed to be fundamentally revised in the course of this year A precondition for achieving a coherent further development of the energy transition policy and for receiving the sound support of a critical public is that the long-term consequences of political decisions on a complex sociotechnical energy system be taken into account The requirements of such a system are not satisfied by policy approaches or recommendations that target short-term effects or that are perceptions of problems extrapolated from individual sectors On the basis of its integrated research on the energy transition, researchers from the Helmholtz Alliance Energy-Trans take a stand on current important controversial issues from the energy transformation and specify fundamental challenges to shaping a sustainable energy transition policy

Capacity payments to secure electricity supply? On the future of Germany’s power market design

Abstract: Although the objectives of the Energiewende (energy transition) are broadly accepted in Germany, the practical ways of achieving them remain highly contentious. In particular, the question of whether and how security of supply can be guaranteed over the course of this profound transformation of the energy system is currently the subject of controversy in the scientific and public debate. Recently, calls for additional payments to power plant operators for providing generation capacity have grown increasingly loud. But the introduction of capacity payments of this sort could have far-reaching consequences for the future organisation of Germany’s electricity supply. Therefore, the political decision on this issue - which is scheduled for this year - should not be made without a sound scientific analysis. Basically, measures aimed at guaranteeing security of supply must address the possible causes of capacity shortages as broadly as possible. When designing such measures, besides security of supply, additional objectives such as cost-effectiveness and the environmental and social acceptability of electricity supply should also be taken into account. Capacity payments only partially meet these requirements. Moreover, once introduced, they are difficult to adapt, or revise even, to suit changing framework conditions. This is particularly problematic in view of the current lack of clear evidence for future security of supply problems. Therefore, introducing capacity payments at this point in time would not appear to be constructive. It would make more sense to introduce instead a mix of measures which would strengthen the electricity market, create conditions for feeding in electricity from renewable energy sources as and when required, and set incentives for the expansion of grid capacity, storage systems and demand side management. Should security of supply still appear uncertain under these changed framework conditions, the introduction of a strategic reserve, which would be held by the regulatory authority or the transmission system operator, is recommended - not, however, the creation of an entirely new, additional market segment in the form of a capacity market.

Drivers of Energy Efficiency in German Manufacturing: A Firm-level Stochastic Frontier Analysis

Abstract: Increasing energy efficiency is one of the main goals in current German energy and climate policies. We study the determinants of energy efficiency in the German manufacturing sector based on official firm-level production census data. By means of a stochastic frontier analysis, we estimate the cost-minimizing energy demand function at the two-digit industry level using firm-level heterogeneity. Apart from the identification of the determinants of the energy demand function, we also analyze potential drivers of energy efficiency. Our results suggest that there is still potential to increase energy efficiency in most industries of the German manufacturing sector. Furthermore, we find that in most industries exporting and innovating firms as well as those investing in environmental protection measures are more energy efficient than their counterparts. In contrast, firms which are regulated by the European Union Emissions Trading System are mostly less energy efficient than non-regulated firms.

Den Strommarkt an die Wirklichkeit anpassen: Skizze einer neuen Marktordnung

Abstract: Der deutsche Strommarkt ist im Umbruch. Strom aus erneuerbaren Quellen verdrangt solchen aus konventioneller Erzeugung. Gleichzeitig wird immer mehr Elektrizitat im Norden Deutschlands produziert und muss zu den Verbrauchern im Suden transportiert werden. Die bestehende Marktordung fordert zwar effektiv den Ausbau erneuerbarer Elektrizitatserzeugung, geht aber mit hohen Kosten einher. Zudem entstehen regionale Ungleichgewichte zwischen Elektrizitatserzeugung und -nachfrage. Einerseits durch den Ausbau erneuerbarer Stromerzeugung vor allem im Norden, anderseits durch den Ruckgang konventioneller Kapazitaten im Suden. Es verwundert nicht, dass momentan zahlreiche Vorschlage zur Reform des Erneuerbaren-Energien- Gesetzes und des Netzausbaus entwickelt und diskutiert werden. Die meisten bestehenden Vorschlage betrachten entweder den Ausbau der Erneuerbaren oder der Netze, gehen aber nicht auf die Interaktion zwischen beiden ein. Wir skizzieren eine neue Marktordung fur den deutschen Strommarkt, die einen kosteneffzienten Ausbau der Erneuerbaren und die Stabilitat der Netze gemeinsam berucksichtigt. Eine Pramie auf den Borsenstrompreis fordert die Erneuerbaren, wahrend die Aufteilung des deutschen Strommarktes in mehrere Preiszonen hilft, effzient mit regionalen Kapazit ats- und Netzengpassen umzugehen. Durch die gezielte Starkung von zeit- und regionalspezifschen Preissignalen erwarten wir eine deutliche Kostensenkung, sowohl im Vergleich zum bisherigen System als auch zu Vorschlagen, die den Ausbau der erneuerbaren Energien nicht mit Netzausbau und Ruckgang an konventionellen Kapazit aten integrieren.

Adoption of energy-efficiency measures in SMEs - An empirical analysis based on energy audit data

Abstract: This paper empirically investigates the factors driving the adoption of energy-efficiency measures by small and medium-sized enterprises (SMEs). Our analyses are based on cross-sectional data from SMEs which participated in a German energy audit program between 2008 and 2010. In general, our findings appear robust to alternative model specifications and are consistent with the theoretical and still scarce empirical literature on barriers to energy efficiency in SMEs. More specifically, high investment costs, which are captured by subjective and objective proxies, appear to impede the adoption of energy-efficient measures, even if these measures are deemed profitable. Similarly, we find that lack of capital slows the adoption of energy-efficient measures, primarily for larger investments. Hence, investment subsidies or soft loans (for larger invest-ments) may help accelerating the diffusion of energy-efficiency measures in SMEs. Other barriers were not found to be statistically significant. Finally, our findings provide evidence that the quality of energy audits affects the adoption of energy-efficiency measures. Hence, effective regulation should involve quality standards for energy au-dits, templates for audit reports or mandatory monitoring of energy audits.