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Wind Power Pricing in a Liberalized Electricity Market-Chapter 258:The German Experience

Elsevier Ltd
DOI: 10.1016/b978-008043865-8/50258-0
  • Communication
  • Ecology
  • Law
  • Political Science


Publisher Summary This chapter deals with the wind power pricing in a liberalized electricity market. The use of wind energy has grown dramatically in recent years in Germany owing to specific legislation. Market liberalization poses a challenge on the further development of this form of energy. A truly effective pricing policy has to recognize existing market distortions and acknowledge the benefits of price mandates in a transitory period. In the German market, both marketing systems for wind power, direct marketing as green power and price mandate, co-exist since the liberalization in 1999. Ideological considerations have led to challenges of the successful legislation in favor of renewable energy sources. The German government has prepared a Law on Renewable Energy, which is still based on mandatory purchase of wind energy. To uphold legislation in favor of wind energy sources (and generally speaking of decentralized energy sources) and work at the establishment of a level playing field is a pragmatic response to the current transitional situation. This dual approach proves more beneficial to set up a sound energy system.

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