Press | Tuesday, 26 March 2024
Creating Investment Incentives, Providing Reserve Capacity: options for the market integration of renewable energy
Joint press release by the German National Academy of Sciences Leopoldina, acatech – National Academy of Science and Engineering and the Union of the German Academies of Sciences and Humanities
A massive expansion of renewable energy is key to achieving a climate-neutral energy supply. However, it is also associated with high investment costs, low returns for electricity producers at certain times, and a limited supply of electricity during periods with little wind or sunshine. Experts from the Academies’ Project “Energy Systems of the Future” (ESYS) have investigated how renewables can nevertheless be effectively and efficiently integrated into the market. Their conclusions include the following two key findings. Firstly, in order to provide adequate support for renewable energy, cross-sectoral carbon pricing will need to be accompanied by market premiums in the short-term. And secondly, various market models should be considered for providing the necessary reserve capacity.
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