BDEW Calls for Incentives for Conventional Power Plants

In view of the expansion of renewables, BDEW, the federal association of the electricity and water industry, warned of a collapse of the electricity market in Germany, as conventional power plants were no longer commercially viable. Under the Renewable Energy Sources Act (EEG), renewables are privileged insofar as renewable energy can always be fed into the grid regardless of demand. As a result, convential power plants that are needed to balance supply and demand can only be run for shorter periods than in the past.

BDEW chairman and RWE executive board member Rolf Martin Schmitz therefore called for an incentive scheme, e.g. a “capacity bonus” (Kapazitätsprämie) for operators of convential power plants which provide electricity in case renewable plants cannot deliver.

Mr Schmitz also critisized the government for an unclear energy policy that denied the sector investments and planning certainty. “The German economy is currently undergoing an open-heart surgery”, Mr Schmitz also said with respect to the unresolved question of an extension of the operating time of nuclear power plants. According to BDEW calculations, the German government will not meet its climate target for 2020 without an extension of nuclear power.

Source: Welt

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