The Impact of a German Capacity Market: Revenue Lifeline or Regulatory Trap?

Time: 15:45 - 16:30
Date: 4 June 2025

Synopsis

This session will start with a brief overview of German capacity market plans and future direction, followed by a debate on its benefits vs. advantages. 2nd August 2024, the BKMW launched a consultation on future electricity market design, including various options for a Capacity Market to be implemented in 2028. As a country that has been historically anti-capacity markets, this marks an interesting paradigm shift in mindset for Germany. However, views remain mixed on the benefits of this proposed market design change.

  • Will the introduction of the capacity market in 2028 be detrimental to revenues earned from energy storage assets?
  • Will a capacity market reduce merchant risk for storage — or increase regulatory dependency?
  • How will the market design reward different durations of storage (short vs. long-duration)?
  • Is 2028 too late to incentivize investment in flexibility today?

Speaker

  • Philipp Merk Founder & Managing Director - Kyon Energy
  • Sebastian Schleich Senior Specialist for National and European Capacity Mechanisms - TransnetBW GmbH
  • Kilian Leykam Director, Energy Storage Commercial - Aquila Clean Energy

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