Bucksteeg, Michael; Mikurda, Jennifer; Weber, Christoph:
Integration of power-to-gas into electricity markets during the ramp-up phase : Assessing the role of carbon pricing
In: Energy Economics, Band 124 (2023), Artikel 106805
2023Artikel/Aufsatz in ZeitschriftOA Hybrid
WirtschaftswissenschaftenFakultät für Wirtschaftswissenschaften » Fachgebiet Betriebswirtschaftslehre » Energiewirtschaft
Damit verbunden: 1 Publikation(en)
Titel in Englisch:
Integration of power-to-gas into electricity markets during the ramp-up phase : Assessing the role of carbon pricing
Autor*in:
Bucksteeg, MichaelUDE
LSF ID
47428
Sonstiges
der Hochschule zugeordnete*r Autor*in
korrespondierende*r Autor*in
;
Mikurda, JenniferUDE
LSF ID
60060
Sonstiges
der Hochschule zugeordnete*r Autor*in
;
Weber, ChristophUDE
GND
171222180
LSF ID
12106
ORCID
0000-0003-0197-7991ORCID iD
Sonstiges
der Hochschule zugeordnete*r Autor*in
Erscheinungsjahr:
2023
Open Access?:
OA Hybrid
Web of Science ID
Scopus ID
Sprache des Textes:
Englisch
Schlagwort, Thema:
Carbon pricing ; Electricity market model ; Energy policy ; Power-to-gas

Abstract in Englisch:

The expansion of wind and solar energy has so far primarily led to the decarbonization of the electricity sector. Against this background, power-to-gas (PtG) is seen as a solution supporting the decarbonization of other sectors, such as heating or transport. As the generation mix will transitionally be based on fossil-fired generation technologies, the upcoming integration of PtG into electricity markets comes with several challenges. While the current debate focuses on sustainability criteria and support mechanisms, integration of PtG into electricity markets requires a further development of the market design. Notably, the design of electricity markets and carbon pricing should create efficient incentives for utilizing PtG, reflecting the value of the CO₂ emissions avoided by electrolytic hydrogen or methane. General effects are analyzed to study the role of carbon pricing in integrating PtG. Moreover, a detailed bottom-up market model is extended by the PtG technology and competing flexibilities, such as storage or demand-side management. Several scenarios are developed regarding levels of CO₂ price, techno-economic parameters of flexibilities and shares of variable renewable energy sources for 2025. The results reveal that carbon pricing has to reflect both the avoided and the induced CO₂ emissions related to electrolytic hydrogen or methane to support the market integration of PtG during the ramp-up phase. On the contrary, too low CO₂ prices might lead to adverse effects. Subsequently, implications for energy policy are discussed.