New Electricity Market Design for the Integration of Fluctuating Renewable Energies
The German Renewable Energy Federation (BEE) published the study "New Electricity Market Design for the Integration of Fluctuating Renewable Energies" in December 2021. Together with its sectoral and regional member associations and supported by more than 70 stakeholders from the entire energy sector, the BEE commissioned and supported the study, which was scientifically implemented by the Fraunhofer Institutes for Energy Economics and Energy System Technology (IEE) and Solar Energy Systems (ISE) and legally reviewed by the law firm Becker Büttner Held (BBH).
The background of the study is the current electricity market design which leads despite low-cost generation of renewable energies, both to negative electricity prices and increasing shares of energy volumes that are not remunerated, as well as to lower market values in the medium term. This hinders the economic efficiency of the expansion of renewable energies necessary for climate protection.
The comprehensive study shows how a climate-neutral electricity system must be designed. In addition to the required flexibility options in the consumer, storage and generating sectors, the study also considers economic and business aspects for the operation of renewable energies. into the compatibility of the individual measures with the European legal framework also ensures that the proposals for a new electricity market design are compatible with national and European law.
The full study is only available in German. A short version of the study, a press release as well as the presentation of the core findings are available for download here.