Bremen Energy Working Papers two at once (No. 06 and No. 07)
Bremen Energy Working Paper No. 06
Roland Meyer analyses vertical synergies in electricity supply based on a literature review. His results show that apart from coordination economies a main source of scope economies results from a market risk effect. While the European policy of transmission unbundling leads to synergy losses between 2 and 5 percent, an unbundling option that separates generation and retail may lead to a permanent cost increase of 15 percent and more due to a risk increase.
The paper can be downloaded here.
Bremen Energy Working Paper No. 07
Gert Brunekreeft, Christine Brandstätt and Nele Friedrichsen contribute to the debate on efficient network development regarding smart grids. The authors discuss the introduction of locationally differentiated network and energy charging for better coordination of investment in grids, generation and demand. So called smart contracts are presented as a flexible alternative to general tariff plans especially for distribution grids.
The paper can be downloaded here.