German base station power supply bidding

4 FAQs about German base station power supply bidding

Will Kraftwerke Mainz-Wiesbaden build a hydrogen-ready gas plant?

Municipally-held Rhine-Main area generator Kraftwerke Mainz-Wiesbaden said on March 4 that it wants to build a hydrogen-ready gas plant for 250 MW power and 100 MW district heat capacity at the site of an existing gas engine plant. Provided the government strategy is a fit for its plan, the new unit's commissioning could happen in 2028, it said.

Will a bidding zone split affect energy-intensive industrial consumers?

Energy-intensive industrial consumers are more vulnerable to increases of wholesale prices (procurement costs), as they make up more than 90% of their power costs. European competitiveness of energy-intensive industry is hardly affected by a bidding zone split. However, global competitiveness of southern consumers would come under further pressure.

Why do utilities want to bid for subsidies?

Utilities aim to bid for subsidies that Berlin has committed to pay because the plants will complement volatile renewables until such time that electricity can be 100% green. They will need financial support because they will only operate when weather-driven renewable supply falls short - not enough to recoup their investment costs.

Does a bidding zone split affect dispatchable thermal assets?

A bidding zone split has only limited effect on dispatchable thermal assets as high price hours are very similar between both price zones. The locational steering effect based on the price differences is therefore very low for dispatchable thermal assets and comparatively high for grid-connected electrolysers and other flexible consumers.