A study for the WWF Germany environmental foundation

Focused capacity markets. A new market design for the transition to a new energy system

The focused capacity market constitutes a pragmatic and, compared to the models of a comprehensive capacity market and a strategic reserve discussed up to now, a very advantageous instrument for tackling the current and foreseeable challenges with regard to security of supply.

At the same time a focused capacity market can make a substantial contribution to flanking the transformation of the energy system to one based on renewable energies and maintaining a high intensity of competition in the electricity market while substantially limiting the costs for electricity consumers.