The following pages contain this image or document
Strategic reserve can ensure supply of electricity at low cost
A new study carried out on behalf of the Federal Environment Agency (UBA) has determined that the current electricity market, which is designed as “energy only“, is ideal for the transformation of the energy supply system and will ensure secure supply of electricity. Capacity markets, in contrast, do not need to be introduced at this time as they harbour great risk of inefficiency, in part because they create too little incentive for congestion management. However, it is important that congestion management be expanded to make the electricity market reliable in the long term and to use wind and solar power efficiently. “Greater security in a new energy supply system could be provided by a strategic reserve. This reserve would be useful under absolutely exceptional conditions - for example if a number of power plants fail during a period of extreme cold. It is comparable to the strategic petroleum reserve“, says UBA’s President Jochen Flasbarth. It could be rapidly replenished, if necessary, with a number of new gas turbine power plants or through the continued operation of some of the gas and coal-fired power plants that are due to be decommissioned. read more
