Making wind and solar power more economically viable

Renewable energy

Making wind and solar power more economically viable

The more revenue that renewable energy sources earn on the electricity markets, the less subsidies electricity consumers need to pay. A study undertaken by the Fraunhofer ISI Institute on behalf of the Federal Ministry for Economic Affairs and Energy shows how this can work.

If Germany is to continue to enjoy a cheap supply of electricity, renewable energy sources need to become more economically viable. On 15 September, the Federal Ministry for Economic Affairs and Energy published a study entitled "Analysis of selected factors influencing the market value of renewable energy" undertaken by the Fraunhofer ISI Institute.

Expanding the grid, reducing the minimum generation of conventional power plants

The experts find that electricity from wind and solar power can generate significantly higher revenues if Germany’s energy system is made more flexible.

State Secretary Rainer Baake believes that this flags two points in particular: "First: if we continue to advance the grid expansion and reduce the minimum generation of conventional power plants, the absolute market value of renewable energies will rise and the need for additional funding can be reduced. Second: the measures described in detail in the White Paper will not only further increase the efficiency and security of our electricity system, but also improve the market opportunities of renewables and reduce the funding needed. This is one of the reasons why we should rapidly implement these measures."

White Paper highlights market opportunities for renewables

This summer, the Federal Ministry for Economic Affairs and Energy published the White Paper "An Electricity Market for Germany’s Energy Transition", showing how important it is to have flexible market conditions in order to integrate renewable energy sources into the energy system. The White Paper formed the basis for the draft Electricity Market Act, which the Federal Ministry for Economic Affairs and Energy published on 14 September.

Pilot study on the electricity market makes recommendations

The Fraunhofer ISI Institute’s study forms part of the Leitstudie Strommarkt, which was commissioned by the Federal Ministry for Economic Affairs and Energy in September 2013. This study gathers current findings and derives recommendations for action to further develop the electricity market to meet the needs resulting from increasing volumes of electricity generated from wind and solar power and other renewable sources. In this context, the Federal Ministry for Economic Affairs and Energy has already published a number of other studies with various focuses. Here is an overview:

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