DIW Economic Bulletin

Market Incentives for System-Friendly Designs of Wind Turbines

Up until now, wind turbines have been designed to generate electricity at the lowest possible total cost, independent of this electricity’s market value. With an increasing penetration of wind power in the system, the market value of electricity generated by wind turbines is declining, since wind turbines tend to produce electricity at the same time. For this reason, it will be important in the future ...

Ganzes Heft

The Evolution of Germany’s Net Foreign Asset Position

Available data suggest that, between 2006 and 2012, Germany may have suffered losses to the value of more than 20% of annual economic output on its net foreign assets. Were these presumed losses on German net foreign assets coincidental or can they be attributed to deeper causes? Over time, fluctuating asset valuations are nothing unusual, per se. Losses can quickly turn into profits and vice versa. ...

Public Service Fund Could Ensure Access to the Provisions of Nuclear Power Plant Operators: Six Questions to Claudia Kemfert

German Nuclear Phase-Out Enters the Next Stage: Electricity Supply Remains Secure - Major Challenges and High Costs for Dismantling and Final Waste Disposal

The June 2015 shutdown of the Grafenrheinfeld nuclear power plant marks the shift into a new phase of the energy transition, in which all nuclear power plants in Germany will gradually be shut down by 2022. But even with the end of the commercial use of nuclear power, the lights in this country will not go out: As DIW Berlin’s calculations attest to, the electricity supply in Germany remains secure. ...

Ganzes Heft

Direct Marketing of Renewable Energy Creates New Risks for Investors: Eight Questions to Karsten Neuhoff

Mandatory Direct Marketing of Wind Power Increases Financing Costs

The 2014 reform of the Renewable Energy Sources Act (Erneuerbare-Energien- Gesetz, or EEG) entailed that a mandatory direct marketing of green electricity be introduced. According to this law, operators of larger wind turbines must sell their electricity production on the electricity market. In addition to the wholesale price they receive a floating market premium, which is based on the average market ...

Ganzes Heft

New Capital Requirements for EU Government Bonds Would Lead to Problems for Greece: Eight Questions to Dorothea Schäfer

Stricter Capital Requirements for Investing in EU Government Bonds as a Means of Creating a More Stable Financial System

In the wake of the European debt crisis, it has become clear that government bonds may actually be a risky form of investment. The Basel Committee and the Bundesbank have therefore opened an intense debate as to whether banks investing in EU government bonds should be subject to regulatory capital requirements in the future. Currently, banks do not need equity capital when investing in sovereign bonds. ...

Ganzes Heft

Investment in Building Energy Efficiency: Climate Fund to Increase Rate of Refurbishment: Six Questions to Karsten Neuhoff

Using Equity Capital to Unlock Investment in Building Energy Efficiency?

The energy transition will require considerable increases in energy efficiency, particularly in residential buildings. Financial support mechanisms, information and adviceprograms and dedicated training and certification of craftsmen are already in place to stimulate energy efficiency investment. Nevertheless, the required annual rate of thermal building refurbishment of around two percent is so far ...

Ganzes Heft

Germany’s G8 High School Reform Has No Impact on Graduation Rates: Six Questions to Mathias Huebener

G8 High School Reform Results in Higher Grade Repetition Rates and Lower Graduate Age, but Does Not Affect Graduation Rates

The G8 high school reform to reduce the total number of years spent at Gymnasium (Germany’s academic-track secondary school) has been more controversial than almost any other education reform in recent years. Although there are few reliable empirical findings on the effects of the G8 reform, several federal states are already considering a return to the old system, which required 13 years — rather ...

Ganzes Heft

Electric Mobility Should Be Linked to an Additional Expansion of Renewables: Six Questions to Wolf-Peter Schill

Electromobility in Germany: CO2 Balance Depends on Charging Electricity

The German government plans to significantly increase the deployment of electric vehicles. What impact would this have on the country’s power system and carbon emissions? This question was addressed as part of a European research project analyzing various scenarios up to 2030. One of the key findings of the study is that total annual power consumption of the four to five million electric vehicles (depending ...