For What, How and Where to Invest in the Energy System?

21.03.2019

New policy brief by WIFO economists Stefan Schleicher and Angela Köppl

The achievement of climate targets and technological innovations are the driving forces behind the transformation of the energy system. The Policy Brief "Development plans for energy – what and where to invest in the energy system" argues that for investments in the energy system an overall perspective on the energy value chain is goal-oriented. A disclosure of the system boundaries allows the estimation of consequential effects, such as the necessary grid expansion when investing in a wind farm.

Such more comprehensive decisions are hardly mentioned in connection with the foreseeable restructuring of our energy system. Expansion plans usually focus only on a limited area, such as renewables, heat or electric cars.

However, such an isolated view of individual investments can be counterproductive. This is the experience of the accelerated expansion of renewables in Germany without consistent consideration of the necessary grids.

A transformation to integrated structures of the energy system could be implemented by appropriate regulatory framework conditions and incentives, which could be established as a principle in the planned Renewable Energies Development Act: the law should address the entire energy system; each investment should be compared with alternatives in the provision and use of energy; consequently, the more appropriate term Energy Expansion Act should be considered.

Additional information on the current state and dynamics of the Austrian energy system can be found in the Policy Brief "Analyses of the Austrian Energy Balance 2017" with facts on the influence of the economic situation and outside temperatures on energy consumption as well as information on the extent of data revisions in the energy balances.

Please contact

Markus Kiesenhofer, BA, MA

Activities: Public relations, Coordinator Communication Division

Publications

Policy Brief: Ausbaupläne für Energie. Wofür, wie und wo im Energiesystem investieren? (Policy Brief: Expansion Plans for Energy. What for, how and where to invest in the energy system?)
Studies, February 2019, 13 pages
Online since: 20.02.2019 0:00
 
Der Policy Brief argumentiert für ein vertieftes Verständnis des Energiesystems, um langfristige Investitionsentscheidungen im Energiesystem beurteilen zu können. Zwei Überlegungen sind dabei von Relevanz: 1. Aus gesamtwirtschaftlicher Sicht lassen sich durch einen Fokus auf die Integration aller Komponenten des Energiesystems Synergien und eine damit verbundene Erhöhung der energetischen Produktivität und eine Verringerung von Treibhausgasemissionen erschließen. 2. Ein entsprechender anreizkompatibler institutioneller Rahmen reicht von einem Umfeld für neue Märkte bis zur Überprüfung bestehender Regulierungen und zur Entwicklung von neuen Fördermechanismen.
The building shown here is being built at the Swiss Federal Laboratories for Materials Testing and Research (EMPA) in Switzerland as part of the internationally sensational NEST project. It is a good example of the orientationsguidelines for investment decisions described in the Policy Brief and illustrates the diversity of innovative technologies in the building sector (© Zooey Braun, Stuttgart).
The building shown here is being built at the Swiss Federal Laboratories for Materials Testing and Research (EMPA) in Switzerland as part of the internationally sensational NEST project. It is a good example of the orientationsguidelines for investment decisions described in the Policy Brief and illustrates the diversity of innovative technologies in the building sector (© Zooey Braun, Stuttgart).