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Abstract Background The transition towards a sustainable energy system is reshaping the demand for final energy, driven by the diffusion of new end-use technologies. This shift not only impacts consumers’ energy expenses, but also holds implications for the public budget. Building on data from a German energy transition scenario, we analyse the direct impact of energy costs on industries, low-income households, and changes in government revenues from the taxes and levies on final energy carriers. Our analysis considers the impact of current policies and explores a scenario introducing additional excise tax rates to offset potential revenue losses. Results We found that substantial carbon price increases could generate revenues that offset the losses from excise taxes on fossil fuels while enabling the financing of renewable support from the public budget by the end of this decade. Nevertheless, a decline in government revenues from taxes and levies is anticipated after 2030 until the middle of the century due to the declining use of fossil fuels. Maintaining current excise tax revenues during the transition could be achieved by introducing additional excise taxes on fossil fuels and electricity. Lastly, our analysis indicated a continuous decline in household energy expenditures until 2050, whereas energy-intensive industries face adverse impacts due to decarbonisation. Conclusions This research provides valuable insights into the fiscal implications of the energy transition, shedding light on different industrial sectors and households while considering the evolving impact on the public budget. Policymakers may need to consider systemic reforms or alternative financing mechanisms outside the energy system to balance the books.

Decentralized systems seeking to balance electricity supply and demand regionally are increasingly being discussed. Regional flexibility concepts, however, require spatially and temporally highly resolved knowledge. To provide this, we investigate the 2030 demand, supply, and demand-side flexibility for the German NUTS-3 regions. We (1) model the hourly regional electricity demand and supply, (2) cluster regions with regard to the regional demand and supply fit and (3) evaluate demand response for the identified clusters. While in windy or industrialized regions, the impact of demand response is low, in urban regions on the other hand, the effectiveness of flexible end uses is higher and residual load is flattened. Regions with medium-sized cities or those with smaller energy-intensive industries show a good regional fit. Here, demand response can be used very effectively to increase the regionally consumed share of electricity.

Scenario analysis combined with system and market modelling is a well-established method to evaluate technological and societal developments and their impacts on future energy pathways. This paper presents a process-oriented method for developing consistent energy scenarios using multiple energy system models. Its added value is that the developed energy scenarios are consistent in a multi-model environment and practicable for a broader target group from scientists to practitioners. The scenarios consist of comprehensive storylines and systematically defined quantitative parameters. Following a step-by-step process, a condensed set of overlapping descriptors is generated and used to define the scenarios in a consistent parameter matrix. The set of descriptors allow consistent and comparable outputs independent of model-specific characteristics. The corresponding quantitative parameters can be used by diverse energy system tools. Using multiple models, a team of researchers can explore questions from differing points of view. In an example study, we apply the method to develop scenarios in the context of a cellular energy system. This approach enables the development of scenarios that provide a consistent basis for both stakeholder discourse and multi-model system analysis.