The willingness of investors to build (new) power plants when necessary is a key question in the context of the current debate of an adequate design of electricity markets. This study contributes to the public discussion of this issue by analyzing a “business case” for peak load power plants. Based on the assumption that the current electricity market design will stay in place (instead of introducing capacity markets) the incentives for investors are quantified. The study addresses the main question whether the expected electricity prices will be sufficient to attract new power plant investment and in particular what prices will be needed for this.

Client

TenneT TSO GmbH , Bayreuth , DE
E-Bridge Consultung GmbH , Bonn , DE

Project duration

01.03.2015 - 30.06.2016

Contact
Project members

Dr. Oliver Woll (Coordinator)

Departments

Competition and Regulation