Winter seminar on energy economics: simulation game on the electricity market of the future

In the winter semester 2023/24, Prof. Möst's Chair of Business Administration, in particular Energy Economics, organized the course "Current Topics in Energy Economics" as an energy economics winter seminar entitled "Simulation Game Electricity Market of the Future", which was crowned by a seminar week in Kleinwalsertal, Austria, in the second week of January. Lauritz Bühler and Jakob Baumgarten, the two Research Training Group doctoral students supervised by Prof. Möst, also took part.

The seminar focused on two highly topical issues: a possible division of the electricity price zone in Germany and the debate on the introduction of a reduced industrial electricity price. Over the course of the semester, the students examined the positions of various interest groups on these topics, including those of the BDEW, affected (energy-intensive) companies, individual state governments and various marketers of renewable energies. In addition to the seminar work, the participants drew up a position paper for their assigned stakeholder group based on literature research and economic analyses, which formed the basis for the presentations and the simulation game during the excursion week. The advantages and disadvantages of electricity price zoning and an industrial electricity price were examined from various perspectives and controversially discussed, and the challenges in the concrete design of reform proposals capable of winning a majority were highlighted. The importance of a hydrogen economy and the central role of sector coupling were emphasized and included in these discussions by our fellows.

As representatives of their stakeholder group, the participants had to form alliances and do a lot of persuading until they were able to reach a concrete compromise on both issues. On the issue of price zone sharing, all parties were able to agree on retaining the single German electricity price zone with accelerated grid expansion and greater participation of the southern federal states in the expansion of renewable energies. At the same time, the introduction of an industrial electricity price was rejected as not very advantageous and socially unjust. Instead, concrete measures were agreed, such as the promotion of renewable energies through contracts for differences to reduce the electricity price in the medium and long term as well as in a targeted manner and broad-based relief to increase the competitiveness of Germany as a business location.

The format of the simulation game in conjunction with the excursion to the Söllerhaus in Kleinwalsertal (Austria) thus enabled an intensive exchange on these exciting energy industry topics. In addition, embedded in an attractive leisure program, the participants were able to get to know the Chair of Energy Economics and the Boysen-TU Dresden Graduate School in exchange with the fellows.

Further information on the seminar can be found here: Current topics in the energy industry