Munich Personal RePEc Archive

German Electricity Reserve Markets

Riedel, Stefan and Weigt, Hannes (2007): German Electricity Reserve Markets.


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This paper analyzes the functioning of the markets for electricity reserves in Germany. We provide an overview of the technical requirements and the market design and structure of the primary, secondary and tertiary reserve markets, and then look at developments following the introduction of market-based reserve management. We assess the dependence of the minute reserve market by conducting a correlation analysis. The results indicate an increasing correlation among Germany’s four local markets as well as a relationship to wholesale market outcomes. We test the competitiveness of the reserve market by estimating the average income a peak load supplier can obtain by bidding on the reserve market.

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