Gabriel to talk capacity mechanisms

Gabriel rejects full capacity markets

Gabriel rejects full capacity markets

German energy minister Sigmar Gabriel said his government during the first half of this year will start talks with utilities about capacity mechanisms as a backup for volatile renewable energy output.

But he rejected the creation of a full-fledged capacity market that would include all loss-making fossil power plants in the country.

The government should verify at which locations regional capacity mechanisms are needed, he said.

“We will look at that in discussions with industry and utilities,” Gabriel said at an energy conference in Berlin.

“But we won’t include all conventional (fossil) power plants in a capacity market. That would be a bit expensive. We won’t do that.”

Germany’s big utilities for long have been demanding a mechanism to get remunerated for not shutting down completely gas or coal-fired power stations that are loss-making as they operate Log in to read complete article.

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