Germany: More solar power directly marketed

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According to the latest information from transmission system operators, 3,940 MW of PV power will be integrated completely into the competitive wholesale market in September.

The on-and off-shore wind farm operators may hold the reins when it comes to direct marketing with a grand total of 26,646 MW in September. Still the strongest growth is being witnessed when it comes to direct marketing of photovoltaic electricity.

In January 2013, 2,379 MW were directly marketed. But in September this number is expected to rise to 3,940 MW. Monthly statistics from four transmission system operators confirm this. Direct marketing is planned for 2,757 MW of electricity from biomass and 525 MW from hydropower. In total for the month of September, 33,987 MW of renewable power has been registered for direct marketing.

According to the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), in 2012 after the introduction of the EEG amendment (German renewable energy law), and the market premium, and thereafter the management premium (which covers transactional costs) entering into force, substantial progress has been made.

The operators of PV, wind and biomass plants can do without claiming FITs according to the EEG should they decide to sell the generated electricity directly. They can then receive the market premium on top of the electricity sale revenue. The market premium covers the difference between the EEG subsidy and the average price at the energy exchange as well as the management premium.

The Fraunhofer Institute for Systems and Innovation Research (ISI) and for Wind Energy and Energy System Technology (IWES) as well as the Institute for Climate, Energy and Mobility (IKEM) with the law firm BeckerB├╝ttnerHeld (BBH) have, contracted by the Environment Ministry, evaluated the first experiences with the market premium. In their July report they came to the conclusion that the premium has already initiated development that are important for the mid-term market integration of renewable energy. The market premium sets the tone to more precisely prognose and operate the feed-in mechanism. The market premium can thereby help to relieve the EEG and to integrate renewables into the energy markets.