Reforming the German electricity market

Reforming the German electricity market

The German energy transition and entry of significant new renewable electricity capacity led to calls to reform the German electricity market. We were asked to analyse the suitability of the existing market design and consider alternative proposals to compliment the market.

Future sustainability

Although the German electricity market could work effectively, our analysis showed that reforms would ensure sustainability in the future. We examined options for achieving additional insurance against power outages, including a ‘reserve mechanism’.

New energy market legislation

The Federal Ministry for Economic Affairs and Energy used our work to support Germany's consultation on its future electricity market design which resulted in a green and white book. This in turn led to a number of reforms in the market design.

Our work was also considered by The European Commission during its sector enquiry into capacity mechanisms and during its impact assessment for the “Clean Energy Package” (a legal package to update Energy market legislation).