Dispatch of Flexibility Options, Grid Infrastructure and Integration of Renewable Energies Within a Decentralized Electricity System

We present results of two model based scenario analysis focussing on the future German power sector which is characterized by a rising share of renewable energies and an associated higher demand for flexibility. Case study 1 is based on a general comparison between a decentrally and a centrally orientated electricity system. The research question of case study 2 is whether flexibility should be centrally balanced by a national market-based dispatch or dispatched in a decentralized manner within regional balancing areas. The combined results of these two case studies offer the possibility to show the differences between a decentralized and a centralized electricity system regarding the dispatch of generation, storage and flexibility options as well as resulting effects on variable costs, CO₂ emissions, grid usage and RE integration. Decentralization as control strategy leads to higher variable generation costs due to more expensive generation and less efficient flexibility options that come into the market, while the majority of demand and supply still needs a transmission grid for balancing.