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Abstract: To many, a lot of secrets are at the bottom of the often-cited catchphrase “Smart Grid”. This article gives an overview of the options that information and communication technology (ICT) offers for the restructuring and modernisation of the German power system, in particular with a view towards its development into a Smart Grid and thus tries to reveal these secrets. After a short outline on the development of ICT in terms of technology types and their availability, the further analysis highlights upcoming challenges in all parts of the power value chain and possible solutions for these challenges through the intensified usage of ICT applications. They are examined with regard to their effectiveness and efficiency in the fields of generation, transmission, distribution and supply. Finally, potential obstacles that may defer the introduction of ICT into the power system are shown. The analysis suggests that if certain hurdles are taken, the huge potential of ICT can create additional value in various fields of the whole power value chain. This ranges from increased energy efficiency and the more sophisticated integration of decentralised (renewable) energy plants to a higher security of supply and more efficient organisation of market processes. The results are true for the German power market but can in many areas also be transferred to other industrialised nations with liberalised power markets. [Copyright &y& Elsevier]

• Scenario-based simulations with EnergyPLAN based on Choice Awareness Theory. • Evaluation of recent coal power phase-out plans on annual and hourly bases. • Decarbonising effects of the coal phase-out and electrolytic hydrogen production. • Analysing the coherence of phase-out policies and low carbon technology diffusion. We analyse whether Germany will fall short of the country's decarbonisation targets. Bearing this potential failure in mind, the present study investigates technological options and their effectiveness for decarbonising the energy system from a systemic perspective. We consider the country's coal phase-out, the increasing amounts of electricity from renewable energy sources, more efficient heating concepts as well as the evolving of smart charging infrastructures and large-scale storage options. Based on the declared plans of the federal authorities and alternative proposals of environmental associations, ten distinct decarbonisation scenarios for the period from 2020 to 2030 form the basis of our models. Using the Energy PLAN simulation tool, annual and hourly performance indicators were computed in order to evaluate the effectiveness of decarbonisation measures. In particular, we examine the increasing usage of electrolysers for both the absorption of excess electricity and the production of hydrogen as a substitute for fossil fuels in relation to the timing of the coal phase-out. Pursuing this approach, we demonstrate the coherence between coal phase-out policies and low carbon technology diffusion. Our findings reveal that implementing the coal phase-out earlier than has been scheduled by the country's Commission on Growth, Structural Change and Employment mitigates the non-achievement of the decarbonisation targets. Moreover, our results suggest the upscaling of domestic electrolyser capacity to up to 9554 MW by 2030. [ABSTRACT FROM AUTHOR]

• Assessment of responsiveness' role in mechanisms for adjusting economic incentives. • Agent-based model of feed-in tariff for solar adoption in Germany, Spain, Switzerland. • More responsive designs meet deployment policy goal accurately and lower uncertainty. • Surprisingly, results show diminishing returns of responsiveness that add policy cost. • Country-specific attributes shown to influence solar power diffusion patterns. A rapid, global diffusion of clean energy technologies is central to the efforts to curb global carbon dioxide emissions. Deployment policies based on economic incentives have proved effective in accelerating the uptake of renewable technologies, such as solar photovoltaics, and could quicken the adoption of others. However, their outcomes were often uncertain and costly as many countries struggled to adjust incentives while technology prices fell rapidly. This study addresses this challenge by investigating the role of responsiveness – the policy's ability to react to changes in the context in which it operates – in the design of mechanisms for adjusting incentives over time. This paper employs an agent-based model to evaluate quantitatively six policy designs with varying degrees of responsiveness for adjusting a feed-in tariff for solar photovoltaics in three countries – Germany, Spain, and Switzerland – for over a decade. Our first finding confirms that more responsive policy designs tended to produce policies that meet their goals more accurately and certainly. Between the least and the most responsive designs, deviation from policy goals was reduced by 60% and uncertainty was reduced by more than 50%. Our results also suggest that policy responsiveness could have diminishing returns: improvements in the policy's accuracy and certainty tended to become smaller while policy costs per capita tended to become larger as design responsiveness increased. Finally, simulation results show how country-specific attributes influence the diffusion pattern of the technology. These findings have major implications for the design of future deployment policies supporting the diffusion of clean energy technologies. [ABSTRACT FROM AUTHOR]