In the white book, the ministry clearly rejects a capacity market. Instead, it gives the policy recommendation to develop a so-called "electricity market 2.0," in which a capacity reserve is created that is integrated into a market mechanism, but without introducing a fully-fledged capacity market.
The reserve aims to smooth-out possible supply bottlenecks.
"The electricity market 2.0 guarantees security of supply, is cheaper than a capacity market, creates incentives for innovation and makes the integration of high shares of renewable energy possible," said Rainer Baake, state secretary in the energy ministry.
