The effect of German strategic reserves on the central European electricity market

Author

Bhagwat, Pradyumna C. ; de Vries, Laurens J.

Author_Institution

Energy & Ind. Sect., Delft Univ. of Technol., Delft, Netherlands

fYear

2013

fDate

27-31 May 2013

Firstpage

1

Lastpage

7

Abstract

The increase in intermittent electricity generation is increasing investment risk in the electricity market. A capacity mechanism can contribute to security of supply. Germany is considering an expansion of its small strategic reserve in the south. In this paper the effects of deploying a strategic reserve in the German market are modelled to analyse (1) the leakage of the effectiveness of a strategic reserves to neighbouring countries; and (2) the effect of a strategic reserve on investment behaviour. We conclude that in Germany, a strategic reserve can be an effective capacity mechanism.

Keywords

government policies; investment; power generation economics; power markets; German market; German strategic reserve effect; central European electricity market; intermittent electricity generation; investment risk; supply security; Contracts; Electricity; Electricity supply industry; Generators; Investment; Load modeling; Power generation; capacity mechanisms; cross border effect; investment behaviour; security of supply; strategic reserves;

fLanguage

English

Publisher

ieee

Conference_Titel

European Energy Market (EEM), 2013 10th International Conference on the

Conference_Location

Stockholm

Type

conf

DOI

10.1109/EEM.2013.6607362

Filename

6607362