Transformation to a Renewable Electricity System in Austria: Insights from an Integrated Model Analysis

21 Pages Posted: 11 Apr 2023

See all articles by Claudia Kettner

Claudia Kettner

Austrian Institute of Economic Research

Michael Böheim

affiliation not provided to SSRN

Mark Sommer

affiliation not provided to SSRN

Robert Gaugl

Graz University of Technology

Udo Bachhiesl

Graz University of Technology

Lia Gruber

Graz University of Technology

Thomas Klatzer

Graz University of Technology

Sonja Wogrin

Graz University of Technology

Kurt Kratena

affiliation not provided to SSRN

Abstract

We analyse the (techno- and macro-)economic and distributive effects of a transformation to a renewable electricity system in Austria by 2030, as stipulated by the Austrian government. For the analysis, the macroeconomic model DYNK and ATLANTIS, a partial model of the electricity market, were expanded and linked. Four transformation scenarios conforming with the 100% renewable electricity target in Austria on a national balance are examined, integrated into a consistent scenario for the development of the European electricity system. Additionally, sensitivity analyses with respect to the gas price are performed. Although all scenarios achieve 100% RES-E on a national balance, the analysis shows that electricity from gas-fired power plants will still be needed in 2030 to balance variable renewable generation, to avoid grid congestion, and for heat generation from combined heat and power plants in winter months. Another main conclusion from the simulations is that the transition towards a renewable electricity sector is almost neutral from a socio-economic perspective. It does neither reveal harmful impacts nor lead to high multiplier effects from additional investment.With high natural gas prices in the sensitivity scenarios a decrease in GDP and household income, which might motivate redistributive policies, can be observed.

Keywords: Renewable electricity, Austria, Model linkage, Macroeconomic model, Electricity system model

Suggested Citation

Kettner, Claudia and Böheim, Michael and Sommer, Mark and Gaugl, Robert and Bachhiesl, Udo and Gruber, Lia and Klatzer, Thomas and Wogrin, Sonja and Kratena, Kurt, Transformation to a Renewable Electricity System in Austria: Insights from an Integrated Model Analysis. Available at SSRN: https://ssrn.com/abstract=4415916 or http://dx.doi.org/10.2139/ssrn.4415916

Claudia Kettner (Contact Author)

Austrian Institute of Economic Research ( email )

P.O. Box 91
Wien, A-1103
Austria

Michael Böheim

affiliation not provided to SSRN ( email )

No Address Available

Mark Sommer

affiliation not provided to SSRN ( email )

No Address Available

Robert Gaugl

Graz University of Technology ( email )

Udo Bachhiesl

Graz University of Technology ( email )

Lia Gruber

Graz University of Technology ( email )

Kopernikusgasse 24/IV
Graz University of Technology,
GRAZ, A-8010
Austria

Thomas Klatzer

Graz University of Technology ( email )

Sonja Wogrin

Graz University of Technology ( email )

Kurt Kratena

affiliation not provided to SSRN ( email )

No Address Available

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