Security of Supply in the Electricity Sector: Analysing Different Capacity Mechanisms and Their Interactionswith Demand-side Flexibility Potentials: Results from the Joint DIW Bridge Project "SichER" of the Departments Climate Policy and Energy, Transportation, Environment

Abstract

Germany's energy transition is progressing. Renewable energy sources already cover more than half of Germany's electricity demand. However, as the share of variable wind and solar energy increases, so do the fluctuations in electricity generation. Consequently, flexibility on the supply and demand side of the electricity market is becoming increasingly important. This can be achieved in particular through various types of storage systems and new, flexible consumers as part of sector coupling. [...]