BMWI Publishes Study on Optimising Electricity Market Design

The Federal Ministry of Economic Affairs and Energy has published the a study on “Optimising the Electricity Market Design”. It is part of a larger study on the electricity market that is currently being prepared for BMWi. Creating a new electricity market framework in view of the growing amount of renewable energy is an important topic on BMWi’s 10-Point Energy Agenda. An English executive summary of the study is available.

The study describes how the market and regulatory design should be adapted to current and future challenges of the power system transformation, in particular the expansion of renewable energy sources. To this end the study analyses
  • Barriers to flexibility and market distortions in the current system;
  • Options to optimize the market and regulatory design in the short and medium term, i.e. by reforms of the wholesale electricity markets and the markets for operating reserve that allow easier access for renewable energy sources and flexible demand (so-called no-regrets measures that according to the authors can be taken independent of the decisions on a future market design);
  • Complementary measures to safeguard security of supply in the context of the flexibility requirements of the power market.

“Once the power market has been optimized, further decisions can be made about the necessity and the particular design of capacity mechanisms that complement the new power market” the authors say.

BMWi announced to publish further studies on the matter in the coming weeks.

Source: Federal Ministry of Economic Affairs and Energy

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