Tag Archive for 'capacity market'
On Friday the Federal Ministry for Economic Affairs and Energy (BMWi) presented the much awaited White Paper which outlines the ministries plans for a future electricity market (Strommarkt 2.0). The White Paper proposes a capacity reserve system and not a capacity market to balance the security of supply in Germany where intermittent renewables shall provide energy for the most part by 2050.
On Monday, Germany and eleven neighbours have signed the “Declaration for Regional Cooperation on Security of Electricity Supply in the Framework of the Internal Energy Market”. “Today, 12 neighbouring states in the heart of Europe have decided to usher in a new era of energy policy.: They want to start considering energy security as a european issue, rather than a purely national one”, German Energy Minister Sigmar Gabriel commented.
On 29 April 2015 the European Commission launched its first sector inquiry under EU state aid rules into national capacity mechanisms. The aim is to collect information that will allow the Commission to detect potential distortions of competition or trade in the EU single market and devise appropriate legislative iniatives for an electricity market design in line with the EU’s Energy Union Strategy. The inquiry is broader than many may think: It is by no means restricted to what has been discussed under the “capacity market” heading in Germany recently, but for example also covers key elements of the “electricity market 2.0” option as it also contains important capacity reserve elements. As the inquiry may also provide the basis for future state aid actions and policy decisions of the Commission (which may also include repayment of unlawful state aid), the inquiry should not be underestimated.
The German transmission system operators today secured additional secondary control reserve ahead of Friday’s solar eclipse. Results published on regelleistung.net show average capacity prices from today’s tender for 20 March 2015 of 546.58 EUR/MW (negative secondary control reserve) and 579.70 EUR/MW (positive secondary control reserve). Marginal capacity prices were 1,189.90 EUR/MW for negative and 1,320.00 EUR/MW positive secondary control reserve.
An English language version of the German capacity market green paper is available on the website of the Federal Ministry of Economic Affairs and Energy.
Energy efficiency and the implementation of the Energiewende figure among the top priorities of the Annual Economic Report 2015 entitled “Investing in Germany’s and Europe’s Future”, which the German government presented yesterday. The government raised its 2015 growth forecast for the gross national product from 1.3% to 1.5%.
The publication of key points for the introduction of a capacity market in France lead to Hildegard Müller, chairwoman of the energy trade association BDEW, calling for an open discussion of a German capacity market for energy that ensures the security of supply.
At the second day of the Annual Handelsblatt Energy conference, a discussion round of market participants and regulators followed up on the key note speeches of Rainer Baake of BMWi and comments of Johannes Teyssen, CEO of E.ON, on the current debate whether also in Germany a capacity market should be introduced.
The second key presentation on the first day of the Handelsblatt Annual Energy Conference was from Rainer Baake, Secretary of State in the Federal Ministry of Economics, an influential aide to Minister of Economics, Siegmar Gabriel. He explained the Ministry’s position regarding the potential introduction of capacity markets in Germany, but refused efforts to use this as an instrument to subsidize unprofitable thermal power plants.