Monday, June 9, 2014

Germany moves closer to resolving loss-making power plants issue

A fresh news article serves as a reminder that:
1. there is another cost to be met if the Energiewende is to move on
2. prioritizing supply options with little capacity value result in additional systemic costs

Germany moves closer to resolving loss-making power plants issue - Pennenergy:
An official at the German ministry for energy has confirmed that the government is getting closer to finalising a strategy designed to keep conventional power plants open.
Reuters reports that Uwe Beckmeyer, parliamentary state secretary in the economy and energy ministry said, "We have had two studies done whose results will be put forward soon."
Speaking at a Franco-German energy conference, Mr Beckmeyer said, "We have to develop a capacity mechanism but this has to be developed in a synchronised way with our neighbours. We need an overall system.
"My own view is that the owners of conventional plants, those that have invested in them, must have a continued interest in keeping their plants on line," Beckmeyer added. "We will need conventional energy in the future."
 Continue reading at Pennenergy

Related original content blog articles: 

I concluded Electricity Sector Lessons from Ontario and Germany noting the market damage of capacity payments in Ontario; Germany is treading carefully, but it's not clear there is a solution that allows for a competitive market and capacity payments (which is why I prefer strategic reserves.

The Real High Price of Low-Value Electricity explains why intermittent suppliers drive up the overall cost of an electricity supply system

The Capacity Trap: Ontario's Electricity Costs Soar as Emissions Drop shows how, once capacity payments are instituted, consumer cost and emissions become inversely related.

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