The European Commission has concerns that German plans to constitute an electricity capacity reserve will distort competition. Germany is planning to adopt a measure requiring German network operators to supply two gigawatts (GW) of capacity that will be held in reserve outside the market.
Germany does not expect structural capacity shortages in the future, but wishes to create a safeguard against unforeseen developments. For the Commission to agree, Germany must prove that the measure is necessary, fit for purpose and open to all capacity suppliers. At this stage, the Commission has doubts about Germany's assessment of the need for the reserve. It also feels that the criteria for capacity providers to participate in the reserve may not be sufficiently open for demand response operators (i.e. customers ready to cut or reduce their electricity use to help balance demand with supply). Moreover, foreign capacity providers are excluded.
Finally, the Commission considers at this stage that Germany may not have undertaken all market reforms that would enable the market fully to ensure security of supply at lowest possible cost and without the need for state intervention. (Original version in French by Élodie Lamer)