August 2013

Capacity market discussion in Germany

August 6, 2013 // 0 Comments

There has been a bit of discussion whether or not the German electicity market should be made into a capacity market. EEX is bringing out a stement today: In its position paper, EEX concludes that, in a European single market, capacity markets intended to ensure the security of supply in Germany are not needed. However, better use should be made of the existing potential in order to strengthen the market. Peter Reitz, Chief Executive Officer of EEX, commented: “First, it is necessary to further develop the European single market, to implement energy efficiency measures, develop demand flexibility and, in particular, to improve the integration of renewable energies into the energy market. The introduction of a capacity mechanism should only be considered after that – provided there is both a demand for new conventional power plants and a lack of willingness to invest.“ Full EEX statement here.