Approval from the European Union for Germany's Electricity Mechanism

The European Commission announced that it has approved the capacity mechanism prepared by Germany, which has a budget of up to 35 billion euros, aimed at strengthening electricity supply security.

Purpose of the Capacity Mechanism

The decision regarding the electricity capacity mechanism that Germany plans to implement starting in 2031 was announced by the EU Commission. This mechanism aims to ensure that electricity demand is met under all circumstances.

Through this system, which plans to keep sufficient generation, energy storage, and demand-response capacity constantly ready, it is aimed to prevent potential supply issues.

Support and Bidding Process

Within the scope of the program, various payments will be made to electricity producers and other capacity providers. In addition to electricity sold to the market, payments will also be provided for capacity kept ready to be deployed when needed.

It was stated that these supports will be determined through competitive tenders and that the system is deemed necessary for electricity supply security.

Elements That Can Participate in the System

Not only traditional electricity generation plants will be included in the new mechanism. Energy storage systems and businesses capable of reducing electricity consumption will also be able to participate in the system.

The EU Commission found this comprehensive capacity mechanism prepared by Germany to be necessary and proportionate in terms of ensuring electricity supply security.