The structural changes toward a decarbonized energy system pose new challenges for future markets. Wind energy and solar energy cause fluctuating supply volumes in the short term, which leads to higher price volatility and thus necessitates a higher speed in the markets.
The decentralized, volatile power production from renewables, which is no longer necessarily located at load centers, also requires investment signals to flexibilities and power grids. Furthermore, markets for new relevant energy carriers such as hydrogen have yet to develop. The numerous demands on future energy markets will ultimately determine the future market design.
Specifically, we consider the following questions:
- What will the introduction of the balancing power market bring?
- Will we soon see nodal or zonal electricity prices in Germany?
- Why doesn’t the balancing power market work?
- Will there be a hydrogen market?
- Will there be congestion management and redispatch markets?
- Will there be markets for flexibility?
- Do we need a capacity market?