Work Package 4: Discussion and Recommendations

Description

WP4 integrates the results of our research by blending the theoretical foundations with the empirical evidence to develop economic policy options. We describe and discuss the results of the model simulations. We compare our findings with the theoretical literature on the distribution of grid costs on the one hand and the empirical evidence found in the literature on financing of the electricity grid infrastructure on the other hand. We compare the results of the financing options in terms of the price developments, macroeconomic and distributive impacts, and administrative feasibility deriving conclusions regarding efficiency and equity.

The recommendations based on the multi-faceted discussion of theory, empirical evidence and policy will deliver valuable insights on the reform potentials of the EU's current merit order system in the light of a shift towards 100% renewable energy sources in the Austrian electricity sector, and a potentially scaled up phase-out of natural gas power plants.