Avoiding irreversible climate change as effectively as possible is one of the most pressing challenges of society. Carbon pricing that is uniformly valid on a global and cross-sectoral basis represents a cost-efficient policy tool to meet this challenge. Carbon pricing allows external costs to be allocated or internalized on a polluter-pays principle. It is shown that a global emissions cap-and-trade system is the most suitable market-based instrument for reducing global emissions levels, in line with the temperature goal set by the Paris Agreement. A proposal for its design is presented in this paper. This instrument encourages worldwide measures, with the lowest marginal abatement cost, according to a pre-defined reduction path. Thereby, it ensures compliance with a specified remaining carbon budget to meet a certain temperature limit in a cost-efficient manner. Possible reduction paths are presented in this paper. Weaknesses in the design of existing emissions trading systems (ETS), such as the EU ETS, are identified and avoided in the proposed instrument. The framework solves several problems of today’s climate change policies, like the free rider problem, carbon leakage, rebound effects or the green paradox. The introduction of a global uniform carbon pricing instrument and its concrete design should be the subject of policy, especially at the United Nations climate change conferences, as soon as possible in order to allow for rapid implementation. If a global ETS with a uniform carbon price could be introduced, additional governmental regulations with regard to carbon emissions would become obsolete.

The decentralized feed-ins from distributed energy resources (DER) represent a significant change in the manner in which the power grid is used. If this leads to high loads on electrical equipment, its aging can be accelerated. This applies in particular with regard to the thermal aging of older generations of power cables, namely paper insulated lead covered (PILC) cables. This type of power cable can still be found frequently in medium voltage (MV) networks. If aging of these cables is significantly accelerated in the presence of DER, distribution system operators (DSO) could face unplanned premature cable failures and a high replacement demand and costs. Therefore, this paper investigates the thermal aging of PILC cables in a MV distribution network benchmark for different load scenarios, using standardized load profiles and representative expansion scenarios for wind power and photovoltaics plants in particularly affected network areas in Germany. A main objective of this paper is to present a methodology for estimating the thermal degradation of PILC cables. An approach is used to draw simplified conclusions from the loading of cables to their conductor or insulation temperature. For this purpose, mainly Joule losses are considered. In addition, thermal time constants are used for the heating and cooling processes. Based on the insulation temperature, thermal aging is determined using the Arrhenius law or the Montsinger rule. However, it is important to note that there is an urgent need for research on reference data in this area. For this reason, the results of the lifetime estimation presented in this paper should only be considered as an approximation if the selected reference data from the literature for the aging model are actually applicable. The lifetime assessment is performed for a highly utilized line segment of the network benchmark. Accordingly, extreme values are examined. Different operational control strategies of DSO to limit cable utilization are investigated. The results show that the expansion of DER can lead to a short but high cable utilization, although the average utilization does not increase or increases only slightly. This can lead to significantly lower cable lifetimes. The possible influence of these temporarily high loads is shown by comparing the resulting cable lifetime with previous situations without DER. It is also shown that DSO could already reduce excessive aging of PILC cables by preventing overloads in a few hours of a year. In addition to these specific results, general findings on the network load due to the influence of DER are obtained, which are of interest for congestion management.

Our current energy landscape is ever-changing, resulting from the ongoing energy transition and introducing a massive expansion of volatile generation feed-in and energy consumption (due to electrification). In turn, the energy supply’s requirements are also being affected. In this context, the energy system’s optimisation across all sectors will only grow in significance, especially in terms of future developments. Facilitating and researching methods for carrying out the aforementioned optimisation creates new demands pertaining to load flow simulation programmes. The volatility of specific participants and their interactions within existing power grids must be evaluated, wherefore the consideration of a large number of time steps but also dynamic simulations becomes inevitable. Carrying out such simulations is possible but very time-consuming. This article compared a variety of conventional load flow simulations such as the current iteration and Newton–Raphson methods and also introduced a novel, state-space based calculation approach, which boasts the potential of structurally increasing simulation speeds. Each of the method’s underlying principles, requirements, and mathematical correlations will be discussed and explained. In the second part of this article, the most important state-space equivalent circuit models of critical operating equipment are introduced. These models are essential for carrying out load flow simulation tests for an exemplary test network but could also be used for dynamic purposes. The previously showcased load flow methods were applied to a test network, with which the simulation methods should be validated. The results show that the state-space simulation has high accuracy while also being very flexible. All in all, the load flow calculation in state-space offers many advantages that could be an interesting alternative to conventional load flow simulations, especially for the analysis of complex, time series-based, and intelligently controlled smart grid power systems. In this context, the direct application of system theoretical methods for stability calculations, controllability, and dynamic system studies is to be mentioned. Optimisation options regarding the processes within the state-space calculation software still promise further significant increases in performance.

This paper addresses the sector-coupling principle, highlights each associated sector’s technologies and showcases their future development, according to the German grid development plan. Furthermore, the research project ESM-Regio, and its goals in terms of simulatively analyzing the sector-coupling approach for a specific model region and future scenarios, is introduced. In this context, the key methods for modeling the electricity sector’s loading behavior are showcased. Most importantly, the state-space load flow calculation, load modeling (including the integration of the power demands of the sector-coupling technologies) and an assessment of grid operating equipment, based on thermal aging models, are described.

The integration of electromobility with its required charging infrastructures into the existing power grid, which is demanded by politics and society, is an enormous challenge for electrical power grid operators. Especially considering further challenges, such as the electrification of heat supply systems and sector coupling, it is to be expected that the power grid’s capacity will be strongly overstrained. On the other hand, grid expansion is an extremely expensive and time-consuming method of ensuring that the existing grid is not overloaded, and sufficient grid capacity is available. A suitable grid operations management approach can enable comprehensive and grid-serving control of flexibility, especially charging processes. This article presents a cluster-based and incentive-oriented grid operation management concept and describes the integration of the system into the current German regulatory framework. In addition, the structural integration of charging infrastructures for electromobility into a grid-oriented control system is presented. The suitability of grid charges and their dynamization for stimulating grid-oriented behavior is analyzed. Furthermore, the derivation of additional costs arising from the utilization-dependent thermal aging of grid assets and their imputed integration into the incentive system is described.

Energy sharing among small- and medium-sized enterprises (SMEs) may improve local use of distributed renewable generation and flexibility, but its effects on distribution grids remain uncertain under participant-oriented rather than grid-optimized dispatch. This study assesses the grid impacts and economic implications of participant-oriented energy sharing for a 2024 reference scenario and a highly electrified 2045 stress-test scenario. The analysis uses measured load profiles from SMEs in sectors covering a 30-day period from 15 October to 15 November. The results therefore represent an autumn-specific comparison rather than annual estimates. For both scenarios, grid operation without energy sharing is compared with participant-oriented energy sharing, and the resulting time series are evaluated in a separate load-flow simulation. Grid impacts are assessed using asset utilization, power flows, and aging-related operating costs. In 2024, energy sharing caused no significant adverse grid effects and reduced aging-related operating costs by 5.6%. In the 2045 stress-test scenario, these costs increase by 11.7%. Nevertheless, based on an energy sharing potential of 22.76 GWh, participating companies retain an economic benefit even if additional grid costs are allocated to them. The results indicate that participant-oriented energy sharing can be economically attractive, while its grid effects depend on future electrification and system conditions.