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Does Germany Need Capacity Payments Now to Secure Its Electricity Supply?

Lehmann, Paul and Brandt, Robert and Gawel, Erik and Heim, Sven and Korte, Klaas and Löschel, Andreas and Massier, Philipp and Reeg, Matthias and Schober, Dominik and Wassermann, Sandra (2015) Does Germany Need Capacity Payments Now to Secure Its Electricity Supply? [Other]

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Official URL: https://www.energy-trans.de/english/1087_1455.php

Abstract

Basically, measures aimed at guaranteeing security of supply must address the possible causes of capacity shortages as broadly as possible. When designing such measures, besides security of supply, additional objectives such as cost-effectiveness and the environmental and social acceptability of electricity supply should also be taken into account. Capacity payments only partially meet these requirements. Moreover, once introduced they are difficult to adapt, or revise even, to suit changing framework conditions. This is particularly problematic in view of the current lack of clear evidence for future security of supply problems. Therefore introducing capacity payments at this point in time would not appear to be constructive. It would make more sense to introduce instead a mix of measures which would strengthen the electricity market, create conditions for feeding in electricity from renewable energy sources as and when required, and set incentives for the expansion of grid capacity, storage systems and demand side management. Should security of supply still appear uncertain under these changed framework conditions, the introduction of a strategic reserve, which would be held by the regulatory authority or the transmission system operator, is recommended – not, however, the creation of an entirely new, additional market segment in the form of a capacity market.

Item URL in elib:https://elib.dlr.de/99504/
Document Type:Other
Title:Does Germany Need Capacity Payments Now to Secure Its Electricity Supply?
Authors:
AuthorsInstitution or Email of AuthorsAuthors ORCID iD
Lehmann, PaulUFZ LeipzigUNSPECIFIED
Brandt, RobertFFU - FU BerlinUNSPECIFIED
Gawel, ErikUFZ LeipzigUNSPECIFIED
Heim, SvenZEW MannheimUNSPECIFIED
Korte, KlaasUFZ LeipzigUNSPECIFIED
Löschel, AndreasUni MünsterUNSPECIFIED
Massier, PhilippZEW MannheimUNSPECIFIED
Reeg, Matthiasmatthias.reeg (at) dlr.deUNSPECIFIED
Schober, DominikZEW MannheimUNSPECIFIED
Wassermann, SandraZIRIUS - Uni StuttgartUNSPECIFIED
Date:February 2015
Journal or Publication Title:Policy Brief of the Helmholtz Alliance Energy-Trans
Refereed publication:No
Open Access:Yes
Gold Open Access:No
In SCOPUS:No
In ISI Web of Science:No
Status:Published
Keywords:Capacity Market, Market Design, Energy Transition, Security of Supply
HGF - Research field:Energy
HGF - Program:Technology, Innovation and Society
HGF - Program Themes:Renewable Energy (old)
DLR - Research area:Energy
DLR - Program:E MS - Systems analysis
DLR - Research theme (Project):E - Systems Analysis and Technology Assessment (old)
Location: Stuttgart
Institutes and Institutions:Institute of Engineering Thermodynamics
Deposited By: Reeg, Dipl.-Ing. Matthias
Deposited On:08 Dec 2015 08:31
Last Modified:31 Jul 2019 19:56

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