Title :
The effect of German strategic reserves on the central European electricity market
Author :
Bhagwat, Pradyumna C. ; de Vries, Laurens J.
Author_Institution :
Energy & Ind. Sect., Delft Univ. of Technol., Delft, Netherlands
Abstract :
The increase in intermittent electricity generation is increasing investment risk in the electricity market. A capacity mechanism can contribute to security of supply. Germany is considering an expansion of its small strategic reserve in the south. In this paper the effects of deploying a strategic reserve in the German market are modelled to analyse (1) the leakage of the effectiveness of a strategic reserves to neighbouring countries; and (2) the effect of a strategic reserve on investment behaviour. We conclude that in Germany, a strategic reserve can be an effective capacity mechanism.
Keywords :
government policies; investment; power generation economics; power markets; German market; German strategic reserve effect; central European electricity market; intermittent electricity generation; investment risk; supply security; Contracts; Electricity; Electricity supply industry; Generators; Investment; Load modeling; Power generation; capacity mechanisms; cross border effect; investment behaviour; security of supply; strategic reserves;
Conference_Titel :
European Energy Market (EEM), 2013 10th International Conference on the
Conference_Location :
Stockholm
DOI :
10.1109/EEM.2013.6607362
