German and French Energy Experts Intensify Talks About Security of Electricity Supply in Europe and Future Electricity Market Design

Last week leading energy experts from Germany and France met for talks on the security of supply in Europe and a future electricity market design in view of the changing energy landscape in both countries and the growing amount of renewable energy sources. The conference that was held in Berlin was organised by the German Energy Agency (dena), the Federal Association of the Energy and Water Industry (BDEW) and the French Energy Association UFE (Union Française de l’Électricité).

Representatives from the industry and politics agreed that answers had to be found on the European level. French-German cooperation played a key role, dena said, pointing out that market mechanisms that strengthened the security of supply in Europe were an important topic of the discussions as well as solutions aimed at syncronising renewable growth with grid expansion, market integration of renewables and the management of the electricity demand.

Hildegard Müller, Chairwoman of the General Executive Management Board of BDEW, stressed that her association was in talks with UFE to find cross-border solutions for ensuring the security of supply based on concepts developed in Germany and France, which were market-oriented, transparent and compatible with EU law. While France wanted to introduce a capacity market mechanism this year, the decentralised capacity market proposed by BDEW was still being discussed in Germany, Mrs Müller said, calling on the government to act speedily as the situation on the generation market was becoming more critical the longer one waited.

Due to the growing input of renewable energy that enjoys priority in the grids, it is becoming increasingly difficult to sell conventional power (especially from modern highly efficient plants) at prices that cover the costs in Germany. The issue has been recognised by the government, which put the topic on its 10-point agenda, it presented following the recent reform of the Renewable Energy Sources Act (EEG 2014).

For a study published by the Federal Ministry of Economic Affairs and Energy in July on “Optimising the Electricity Market Design”, please click here.

Source: dena

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