Friday, July 26, 2013

President of German Cartel Office Calls for Reform of Renewables Law and Questions Feed-in Priority

From the German Energy Blog, an entry on recent statements by "Andreas Mundt, President of the German Cartel Office."
I find it noteworthy for 3 reasons:

  1. the excellent German Energy Blog gives it a lot of space
  2. feed-in tariffs are assailed (see my Wind Feed-in Tariffs in Ontario: An Info-Obit)
  3. a strategic reserve model for capacity is championed - a position I share for situations where plentiful legacy capacity exists but is no longer economically viable 

President of German Cartel Office Calls for Reform of Renewables Law and Questions Feed-in Priority « German Energy Blog:
If one could start all over a again, a quota model (that would oblige utilities to buy certain quota of renewable energy) was probably the most preferable approach, Mr Mundt said (this approach has also been suggested by various sources like the German Council of Economic Experts, former Economics Minister Rainer Brüderle, the Monopolies Commission and RWI in the past).
...
Producers of renewable energy had to become subject to the pure conditions of competition to overcome the existing “produce and forget” mood. A support scheme for renewable energy was still needed, but should be more market-oriented, e.g. by introducing auction models, Mr Mundt said, adding that the feed-in priority could be abolished...
...he advocated for a strategic reserve model (also proposed by the Federal Association of the Energy and Water Industry – BDEW), in which conventional power plants provide reserve capacities for situations of special demand. This model could be easily introduced, was reversible and relatively low-cost, he said (regarding the current regulatory framework to ensure the security of supply, please click here).
Continue reading at the German Energy Blog

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