Policy Brief: Expansion Plans for Energy. What for, how and where to invest in the energy system?

The policy brief argues for a deepened understanding of the energy system for evaluating long run investment decisions for energy. Two aspects are of relevance: 1. From a macroeconomic perspective synergies arise from an integration of all components of the energy system which can unlock an increase in energy productivity and a reduction of greenhouse gas emissions. 2. A corresponding incentive compatible institutional environment comprises a setting for new markets, an evaluation of existing regulations and the development of new mechanisms to incentivise investments.