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Germany struggles with system balance as coal is squeezed
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Report summary
When a power system lacks flexibility, unexpected imbalances in supply and demand can lead to critical moments in terms of grid security - a situation which has become too familiar for the operators of Germany's power grid in recent months. Their ability to effectively balance the system has been hindered by regulation which enables providers to secure vastly inflated power prices in instances of system stress. Demonstrative of the complexity of Germany's ever-evolving power market, the incidents have occurred against a backdrop of record levels of coal-to-gas switching and solar output.
Table of contents
- Forecast error and market arrangements drive price spikes
- Upside for gas as coal loses more ground
Tables and charts
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- Year-on-year change in generation (Germany)
- Year-on-year change in generation (Germany)
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