Federal Network Agency Draft for AusglMechAV Amendment

After a consultation process, Bundesnetzagentur (Federal Network Agency) presented a draft amendment of the Equalisation Scheme Execution Ordinance (AusglMechAV). The draft contains revised rules for marketing renewable energy that network operators have to buy pursuant to the Renewable Energy Sources Act (EEG).

Pursant to the AusglMechV, on which the AusglMechAV builds, transmission system operators have to sell their renewable energy at the spot market (financial equalisation). Prices at the spot market have been negative in the past. They also did not cover the feed-in tariffs payable pursuant to the EEG and the so-called profile service costs (Profilservicekosten).  To curb the costs of the transmission system operator, which are ultimately passed on to the consumer with the so-called “EEG reallocation” (EEG-Umlage), AusglMechAV stipulates for 2010 that network operators are not required to sell at any price. In certain limited cases, they are allowed to set price limits.

As negative prices are even more likely to occur with an increasing amount of renewable energy being fed into the grid, the draft AusglMechAV amendment provides for an extension of the possibility to sell with price limits.

After consultation with market participants, the Federal Network Agency proposes a slightly modified provision in § 8 AusglMechAV. A price limit can be set upon a call for a second auctioning of the electricity. The limit can fluctuate within a range of negative prices of EUR -150/MWh to EUR -350/MWh. Specific wind and grid conditions that so far were a prerequisite for a price limit are no longer relevant. Transmission system operators are required to publish the details of a price limit.

Market participants are asked to comment on the draft until 4 October 2010.

Source: Bundesnetzagentur

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