On 1 October, Oxera and Bird & Bird will be organising an afternoon seminar in on “Capacity Mechanisms in the Energy Turnaround – Risks for Market Participants? The seminar will cover important current energy state aid law questions, and will be held mainly in German. It is free, but places are limited. Please send me an if you are interested.
Monthly Archive for September, 2015
Today the Federal Ministry for Economic Affairs and Energy (BMWi) published the study “Analysis of selected factors affecting the market value of renewable energies”.
Various newspapers have started to published initial information on a ministerial draft for the new Electricity Market Act (Strommarktgesetz). The draft contains many elements from the the White Paper presented at the beginning of July and the government agreement of early July. It rejects proposals to introduce a capacity market, and instead relies on the concept of an “electricity market 2.0”, with additional capacity, climate and grid reserve mechanisms to secure generation adequacy.
The Federal Network Agency (BNetzA) has approved 63 of the 92 grid enhancement and grid expansion projects proposed in the Electricity Grid Development Plan (NEP 2014/2024) and the Offshore Grid Development Plan (O-NEP 2014/2024) drafted by the four German transmission system operators. This comprises optimisation and enhancement measures on power lines with a length of 3,050 km and new power lines with a length of 2,750 km. The agency also released the accompanying environmental report 2014.
The Federal Association of the Energy and Water Industry (BDEW) confirmed information provided earlier in April 2015, saying electricity prices for households declined by 1.4%. According to the latest BDEW information, an average household with an electricity consumption of 3,500 kWh has to pay a little under EUR 84 per month compared with EUR 85 in 2014 for electricity. This includes 52% in state induced price elements.
A ministerial draft for an Act on Continued Liability for Nuclear Decommissioning and Disposal Costs contains a concept to establish a new system of general controlling company liability for nuclear power operators. The aim is to ensure continuing and in particular create new liability for the costs of Germany’s staggered nuclear power exit until 2022 and the follow-up costs. The draft is a reaction to concerns regarding liability of the nuclear companies prompted by the announcement of E.ON SE to split into two companies. According to media reports, E.ON considers taking legal action should the law be passed.
The uniform contract value for the 33 bids with a total capacity of 159.735 kW that were awarded contracts in the second German tender for financial support pursuant to the Renewable Energy Sources Act (EEG 2014) is 8.49 ct/kW, the Federal Network Agency (BNetzA) announced. In the first tender, where bids were binding, the average contract value was 9.17 ct/kWh.
The so-called SAIDI index (System Average Interruption Duration Index), which indicates the average time of interruptions of the gas supply per connected end consumer, went up from just 0,64 min/a in 2013 to 1.257 min/a, the Federal Network Agency (BNetzA) informed. This is comparable with other years in the period 2006 and 2012. Including an accident at a high-pressure pipe that did not effect standard rate customers (Tarifkunden), the SAIDI index for 2013, however, went up to 16,801 min/a.
A ministrial draft for a recast of the Combined Heat and Power Act (KWKG) is now available on the internet. KWKG promotes power generated in CHP plants as well as heating and cooling networks and the respective storage facilities. The draft does not change the goal of a share of power generated in CHP plants of 25% by 2020, but contains many other amendments. They correspond mostly to the key points we informed about on 17 July 2015. The Federal Association of the Energy and Water Industry (BDEW) has voiced criticism and demanded changes.