On February 6, 2014, the European Energy Exchange (EEX) and the European power exchange EPEX SPOT published a joint position paper on the reform of the German Renewable Energy Act (EEG). In this paper, they call for stronger market integration of renewable energies, which should go beyond today’s options for direct marketing. In this respect, EEX and EPEX SPOT agree with the reform proposals put forward by the German Federal Minister of Economic Affairs and Energy; however, EEX and EPEX Spot claim they go “one step further” in their demands for market integration.
The marketing of renewable power based on current demands from the wholesale market constitutes the core element of the proposal by the two exchanges. According to EEX and EPEX SPOT’s report, the mandatory direct marketing scheme for new plants adopted by the German federal government constitutes a step in the right direction. However, in the medium term, even mandatory direct marketing based on a sliding market premium will not be sufficient to make EEG plants adjust their power generation to demand. For this reason, EEX and EPEX Spot argue that power generation should be based on a fixed market premium determined through a competitive tendering model.
To view a link to the paper, see the original announcement.
Data Sources: EEX | Effective Date: February 06, 2014