A document produced by Germany's Federal Minister of Economic an Technology list 4 issues with the 'Energiewende' - I particularly noticed the section on encouraging the construction of new coal and natural gas facilities, where capacity markets seem increasingly viewed as an attractive option.
New BMWi Brochure Takes Stock of Energy Policy Shift and Lists Pending Issues « German Energy Blog:
"The discussion how to provide incentives for new efficient fossil power plants that can replace the nuclear power plants that go offline until 2022 and balance the growing amount of renewable energy continues to run high. Different proposals like capacity markets, in which providers of secure energy are in some way or other remunerated, have been made, and their potential to distort the market and/or render the market design even more complex is pointed out.Read the entire article at the German Energy Blog:
In the section on conventional power plants, BMWi mentions the study carried out by the Institute of Energy Economics at the University of Cologne (EWI) on the best market design to secure sufficient power plant capacity and says that is was carefully examining the topic of capacities markets together with the federal states and the trade associations. Besides BMWi states that the state-owned KfW development bank will launch a new credit programme as of 1 June 2012. The program me shall support investments by municipal enterprises in gas and steam power plants and combined heat and power plants by giving long-term loans at discounted interest rates."
I did not cite the section on the grid/grids - a situation described in more detail in an earlier German Energy Blog post. Discussion there notes the need for high voltage direct current power lines (HVDC) for long distances, and very different local a/c lines.
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