4 ms·
Some years ago Germany "deregulated" its energy sector. The energy providers are buying and selling electricity on exchange markets where prices change with sup
by jpfr 12y ago
Some years ago Germany "deregulated" its energy sector. The energy providers are buying and selling electricity on exchange markets where prices change with supply and demand.
Today, industrial clients are changing to dynamic pricing schemes instead of fixed price-per-kWh contracts with a supplier. That means they also schedule their consumption to profit from low prices when supply is high and demand low.
In the future, big industrial clients could take an even more active role on the energy markets and directly trade capacity without an energy supplier as intermediary. Germany invests a lot in the grid infrastructure to enable more flexibility and decentralized energy sources without risking black outs. They have to do so, as it was politically decided to phase out all nuclear power plants after Fukushima happened. But it's not easy since nuclear plants provide a very stable "supply base" whereas the rising renewables are more volatile.