New options paper: Secure flexibility for a sustainable electricity system

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Discover the statement of the Federal Association of Renewable Energy on the new BMWK options paper, which emphasizes flexibility as the key to a future -proof electricity market design. Find out how an efficient electricity system can be designed to master challenges in the market of renewable energies.
Discover the statement of the Federal Association of Renewable Energy on the new BMWK options paper, which emphasizes flexibility as the key to a future -proof electricity market design. Find out how an efficient electricity system can be designed to master challenges in the market of renewable energies. (Symbolbild/MB)

Important developments in German electricity market design: renewable energies in focus

On September 6, 2024, an important step in the reorganization of the German electricity market was announced. The Federal Association of Renewable Energy (BEE) was temporarily commented on the paper published by the Federal Ministry of Economics and Climate Protection (BMWK), which discusses options for a sustainable and safe electricity system. The key message of the opinion emphasizes that flexibility in the electricity market is urgently required as a central element. This is not only important for the industry itself, but also has far -reaching effects on society as a whole.

The Bee President Dr. Simone Peter made it clear that the efficiency of the current electricity system is significantly restricted. A lack of flexible producer, consumption and storage capacities leads to serious challenges, which includes, for example, the increasingly necessary deflection of green electricity and the increasing negative electricity prices. "Flexibility is the leading currency for a supply -proof and affordable climate -neutral electricity system," said Peter and underlined the urgency of further measures.

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Already in 2021, the Bee showed ways how to encounter the current challenges associated with the energy transition. The need to use decentralized renewable flexibility options - starting with bioenergy to hydropower to geothermal energy - is considered crucial. These strategies aim to efficiently use the existing network infrastructure and to promote the transition from time to quantity-related security systems. In addition, the promotion of consumption noisy flexibility such as electromobility and heat pumps is essential.

In the discussion about the best financing options for renewable energies, the BEE, in particular, rates options 1 and 2 promising. While option 1 is based on real, actually fed-in electricity and is therefore considered a pragmatic approach, the Bee President warns against the risks of option 2, especially with regard to the financial return and market integration.

The concerns of the BEE are not just theoretical nature. A separate analysis with regard to the financial risks for more than a hundred wind farms in Germany has shown that there are significant discrepancies between the theoretical yields and the amounts actually generated. This risk could hinder the acceptance and expansion of fluctuating renewable energies.

In summary, it can be stated that the BMWK and the Bee have a critical dialogue to set the course for the future of the German electricity market. The upcoming decisions will not only promote the energy transition, but also influence the way in which society produces and consumes society with energy. A flexible and sustainable system is the key to secure energy future in Germany.