First tendering round for capacity reserve completed
date of issue 2020.02.28
The transmission system operators have completed the first round of tendering for the capacity reserve. A total of 1,056 megawatts (MW) of generating capacity was procured for the period from October 2020 to September 2022, creating additional security for electricity consumers.
The findings in the security of supply monitoring report published by the Federal Ministry for Economic Affairs and Energy show that it will be possible to cover the demand for electricity at all times in the coming years. It is therefore not necessary for the transmission system operators to procure the remaining 944 MW at a later point in time, which would be possible under the relevant legislation. Power plant operators currently have good prospects on the electricity markets. This is seen in the fact that at present operators are obviously not opting to leave the market, which they would need to do if their plants were contracted for the capacity reserve. The power plants active in the market are available to ensure the security of supply.
Background on the capacity reserve
The capacity reserve is a measure of last resort to ensure security of supply even in extraordinary, unforeseeable, extreme situations. Tendering for the capacity reserve is carried out by the transmission system operators. A capacity of two gigawatts (GW) was offered for tender. Operators of power plants, which may then no longer participate in the electricity market, flexible consumers and storage facility operators were able to take part in the tendering.
Further information on the capacity reserve is available (in German) at www.bundesnetzagentur.de/kapres.
Information on security of supply monitoring is available (in German) at www.bmwi.de/Redaktion/DE/Publikationen/Studien/definition-und-monitoring-der-versorgungssicherheit-an-den-europaeischen-strommaerkten.html.