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2012 | OriginalPaper | Chapter

Local Utilities in the German Electricity Market and Their Role in the Diffusion of Innovations in Energy Efficiency and Climate Change Mitigation

Author : Dorothea Jansen

Published in: Sustainability Innovations in the Electricity Sector

Publisher: Physica-Verlag HD

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Abstract

The German electricity market has undergone a large restructuring since the beginning of the 1990s. While the number of transmission network operators and regional operators decreased drastically, the number of local utilities has stayed rather stable. New actors entered the market in generation, services and distribution (e.g. Yellow Strom, “e wie einfach” (E.ON), independent power producers, energy counsels). Increasingly, local utilities today engage in joint companies and horizontal collaboration to arrange for knowledge and technology transfer in electricity generation, in joint portfolio management and energy trade, and in joint companies for grid management (ATKearny 2007b; VDEW 2007; BDEW 2009; ZFK 1/2011, 10th of January). The engagement of local utilities may help to counterbalance the dominance of the market by the oligopolies of the four large national suppliers. Building on their close relation with customers, established knowledge in Combined Heat and Power Generation (CHP), they might enter into new business fields such as service innovations and electricity generation. They might even have the potential to trigger a change of the sector towards distributed generation of electricity and climate friendly technologies (c.f. a recent overview Bontrup and Marquardt 2010: pp. 84–92 and Chaps. 4 and 5; and Leprich 2005).

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Footnotes
1
Further capacities are held by the German railways (1%), industry (8%) and private producers (13%) (ATKearney 2005, 4).
 
2
www.​mwvlw.​rlp.​de → Wirtschaft → Landesregulierungsbehörde Energie → Netzentgelte/Anreizregulierung.
 
3
Cf. http://www.bundesnetzagentur.de → Beschlusskammern → Beschlusskammer 8 → Veröffentlichung von Effizienzwerten gem. § 31 ARegV).
 
4
The efficiency values within the 102 cases under regulation of the Federal Network agency range from 82.7% to 100%. 32 utilities achieved 100%, 26 were below 90%. The Federal Network Agency also undertook the legal procedures for large utilties on behalf of five federal states. Out of 17 local utilities five achieved an efficiency level of 100%, eight were below 90%, and one achieved only 75.5%. The energy regulation authority in North-Rhine Westfalia assessed 90 large utilities. These achieved efficiency values ranging from appr. 80% to 100%. Five utilities achieved 100%, 12 were below 90%.
 
5
The EU translation is “services in the general interest”. Albeit this term does not meet the meaning of the German term well. The French term “service public” better catches the meaning of providing goods for the basic infrastructural needs of a local population in an inclusive way.
 
6
The significance level of coefficients and the fitted models depend not only on the size of effects but also on the number of cases which is quite low here. Since logistic regression is based on maximum likelihood estimation, there is no measure of explained variation as in ordinary least square regression. Instead McFaddens’s pseudo R2 can be interpreted as the proportional reduction in the likelihood ratio. It calculates the difference between the loglikelihood of the model under evaluation and the loglikelihood of the zero-model (constant only). This difference is standardized on the loglikelihood of the zero model. LR chi2 (also known as -2LL) increases with the model fit and follows a chi2 distribution. Pseudo R2(MF) can also be interpreted as the rate of information gained when using the model evaluated instead of the zero model (Shtatland et al. 2002). Measures of pseudo R2 in general are much lower than OLS R2 (Hosmer and Lemeshow (2000: p. 167). Values above 0.2 must be considered as indicating a model fitting very well.
 
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Metadata
Title
Local Utilities in the German Electricity Market and Their Role in the Diffusion of Innovations in Energy Efficiency and Climate Change Mitigation
Author
Dorothea Jansen
Copyright Year
2012
Publisher
Physica-Verlag HD
DOI
https://doi.org/10.1007/978-3-7908-2730-9_1