ZEW policy brief Published – Adapting the German Electricity Market to Reality – Outline of a Novel Market Organisation

The German electricity market is at a turning point. Electricity from renewable energy sources is gradually replacing electricity generated conventionally. Although the existing market organisation effectively promotes the expansion of renewable power generation, it also involves high costs. Furthermore, regional imbalances between power generation and demand arise. Against this background, this "ZEW policy brief" gives the outline of a new organisation for the German electricity market. The cost-effective expansion of renewables and power grid stability are equally taken into account.