German Reserve Power Systems Co Ltd
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What are German grid reserve power plants?
The German grid reserve power plants are power plants that have been marked for closure but may not be shut down because they have been categorised as important for the system. These power plants may only be used when instructed by the transmission system operators and may not be operated in the market.
How much does a power reserve market cost in Germany?
In Germany these markets now have a daily volume of more than 7 GW, corresponding to almost 9% of the available capacity. In 2006, the procurement costs in the different power reserve markets totaled approximately € 800 million. This paper will discuss Germany’s power reserve markets in detail.
Are Germany's power reserve markets uncompetitive?
This brief analysis corroborates our theory that in Germany at least, demand rates remain excessive and their prices are uncompetitive. Both the theoretical discussion and the empirical analysis of the German power reserve markets show that the markets have undergone a remarkable development in the last seven years.
How have German power reserve markets changed over the last 7 years?
Both the theoretical discussion and the empirical analysis of the German power reserve markets show that the markets have undergone a remarkable development in the last seven years. While the current competitively organized markets offer relatively lower prices, there is still room for improvement.
Who procures power reserves in Europe?
In European electricity markets, each country’s Transmission System Operators (TSOs) are responsible for the procurement of power reserves. Since 2002, German TSOs have procured reserves via competitive bidding in specialized markets.
Can foreign power plant operators provide grid reserve capacity?
The transmission system operators will ask foreign power plant operators to register their interest in providing grid reserve capacity by mid-May. The transmission system operators will then open contract negotiations in coordination with the Bundesnetzagentur.