MARKET INTEGRATION OF RENEWABLE ELECTRICITY GENERATION - THE GERMAN MARKET PREMIUM MODEL

Feed-in tariffs for renewable electricity have proven to be an effective and cost-efficient instrument because they provide long-term investment security; however, they do not incentivize grid and market integration. Feed-in premiums are a relatively novel instrument designed with the objective of k...

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Veröffentlicht in:Energy & environment (Essex, England) England), 2013-02, Vol.24 (1/2), p.127-146
Hauptverfasser: Klobasa, Marian, Winkler, Jenny, Sensfuß, Frank, Ragwitz, Mario
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container_title Energy & environment (Essex, England)
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creator Klobasa, Marian
Winkler, Jenny
Sensfuß, Frank
Ragwitz, Mario
description Feed-in tariffs for renewable electricity have proven to be an effective and cost-efficient instrument because they provide long-term investment security; however, they do not incentivize grid and market integration. Feed-in premiums are a relatively novel instrument designed with the objective of keeping investment risks low while allowing for improved grid and market integration. This article analyses the German feed-in premium. The evaluation of the operation during the first year gives first indications that the market premium can contribute to the system and market integration of renewable energies, while still maintaining investment security. First impacts can be seen in the following fields: diversity of market actors, forecast accuracy, improved remote control and participation in the reserve markets. In general, it can be concluded that the German market premium has been able to trigger significant developments. However, additional assessments of the instrument are necessary in order to see whether the observed changes are sustainable and lead to the expected developments.
doi_str_mv 10.1260/0958-305X.24.1-2.127
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subjects Electricity
Feed in tariffs
Industrial plants
Market prices
Market value
Market-oriented and efficient schemes for promoting renewable electricity generation (RES-E) in the future
Marketing
Power generation
Price premiums
Renewable energy
Wind power
title MARKET INTEGRATION OF RENEWABLE ELECTRICITY GENERATION - THE GERMAN MARKET PREMIUM MODEL
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