EEX ‘Cap’ Futures May Forestall German Power-Capacity Market
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New German electricity futures that guard against short-term price swings may eliminate the need for a power-capacity market, according to European Energy Exchange AG.
The contracts would allow renewable generators in Germany to buy protection from losses when output from wind and solar energy is less than forecast, Chief Executive Officer Peter Reitz said in an interview. Fossil plant operators that sell the futures get a payment for staying online as backup power without state compensation. The contracts may start this summer depending on demand.