Market design
Stakeholder Dialogue Climate-Neutral Electricity System
Project name: Scientific Accompanying Project for the Climate-Neutral Electricity System Platform
Commissioned by: German Ministry for Economic Affairs and Climate Action
Timeframe: 2023 – 2024
Contact: Moritz Schillinger
Bedarf an steuerbarer Leistung: Poster aus dem der gemeinsamen Auftaktsitzung der Arbeitsgruppen der PKNS
Part of the coalition agreement of the ruling coalition in 2021 was to adapt the design of the German electricity market to the challenges of a climate-neutral electricity system dominated by volatile renewable energies. To this end, a stakeholder Climate-Neutral Electricity System Platform was convened in 2023.
In the four working groups Renewable Energies, Flexibility, Controllable Capacities and Local Signals, stakeholders from politics, associations and civil society discussed options for the further development of the electricity market design over the course of 2023.
The work of the was accompanied by a scientific research consortium, consisting of Consentec in cooperation with Guidehouse, Fraunhofer ISI, Neon, r2b energy consulting und Öko-Institut.
Consentec was responsible for the technical support of the ‘Controllable capacities’ working group and was involved in the ‘Local Signals’ and ‘Flexibility’ working groups.
Funktionsweise kombinierter Kapazitätsmarkt (vereinfachte Darstellung)
One focus of the discussion on controllable capacities was the question of how the needs-based supply of electricity consumers can be guaranteed even in times of low availability of renewable energies and how the necessary capacities can be refinanced on the electricity market. Various solution options were discussed in the working group, ranging from an obligation on electricity suppliers to hedge against price peaks to the option of centralised capacity markets.
A key result of the ‘Local Signals’ working group was the development of an improved model for the utilisation of otherwise curtailed electricity from renewable energies by Consentec and Neon. This model was implemented in law during the term of the PKNS (Section 13k EnWG).
The final report of the PKNS is available online, as are the documents of all working group meetings.
In August 2024, the German Ministry for Economic Affairs and Climate Action presented an options paper on the electricity market design based on the work of the PKNS and proposed a combined capacity market for controllable capacities. The details are explained in an input paper by Consentec, r2b energy consulting and Öko-Institut.