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2010-08-01

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Societal Implications of Electrical Power Grids

A reliable electricity supply is vital for every modern society, and therefore the energy system must be able to provide the necessary amount of electricity, preferably without any interruptions. Problems concerning the supply guarantee emerge from currently changing factors such as: degradation of power station capacities and hence reserve capacities, lack of investment in electrical grids due to deregulation, stability problems on account of the upgrading of the European network and because of the fluctuating feed of renewable energies.
The study analyses the network industry and its regulation and gives recommendations towards aspects of investment, safety, quality and efficiency of electricity grids. The conclusions aim at different areas of the electricity industry. The principle of electricity generation close to the consumer is still economically and ecologically valid. Generalised, distance-based user fees are proposed to appropriately engage the electricity producers in the costs and to achieve an overall cost-effective generation. Given the high costs of blackouts, the regulatory framework should encourage investments in the “upper range” of reasonable demand projections and additionally establish fines for low service quality and interruptible contracts. Eventually, it is recommended to desist from an ownership unbundling of power companies for the present and to let the new incentive-based regulation work.

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Project Groups

  • Professor Dr. rer. pol. Ulrich Steger, Lausanne (Chair);

  • Professor Dr. jur. Ulrich Büdenbender, Dresden;

  • Professor Dr. phil. Eberhard Feess, Aachen;

  • Professor Dr.-Ing. Dieter Nelles, Kronberg.


Project Co-ordinator: Dr. rer. nat. Ruth Klüser, Dipl.-Chem.  

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