Englische Publikation: Resource Adequacy Debate in Germany
Strategic reserve, power station strategy and capacity markets – options for an electricity system in transition
Transition of Germany’s electricity supply industry
Spurred by climate policy Germany’s electricity supply industry is in transition towards a system dominated by wind and solar power generation. The fundamental change in the structure of generation requires continuing reform in the design of the electricity market to ensure resource adequacy. This publication describes the status quo of government policy, options for reform and the political debate around the topic.
New provisions are required
For more than a decade, Germany has used a reserve system based on decommissioned gas and coal fired generation assets to ensure resource adequacy for its electricity sector. With the impending coal phase out and the transition to a climate neutral system, new provisions are required for the sector.
Electricity market reform
The German government has issued plans for a power station strategy, i.e. public tenders for H2-ready gas fired electricity plants designed to support security of supply. Moreover, following an extensive stakeholder process, in September 2024 the Ministry of the Economy and Climate Action published a policy paper for electricity market reform including a proposal for a capacity market for Germany.
