The existing capacity on the electricity market is sufficient for the coming years. This is confirmed by the recent and by an commissioned by the Federal Ministry for Economic Affairs and Energy. These reports look at Germany, France, Austria, Switzerland and Benelux for the period up to 2021 as well as Germany and its 'electricity neighbours' for the period up to 2025.
Furthermore, the electricity market 2.0 provides the necessary electricity capacity on the basis of the fundamental market mechanisms described above. In order to ensure that this refinancing functions via market mechanisms, price formation on the market remains free. Fluctuating prices send out important signals to major players on the electricity exchange (electricity providers, traders, large-scale industry). Prices thus indicate the scarcity of electricity at any given time. Furthermore, there are strong incentives for electricity providers and traders in their function as 'balance responsible parties' to achieve a balance - between electricity supplies and feed-in - and to meet their supply obligations.
A 'capacity reserve' provides additional security of supply. By creating a capacity reserve, we are providing a further back-up for the electricity market 2.0. Unlike the 'capacity market', the capacity reserve consists solely of power stations which do not participate on the electricity market and do not affect competition and pricing.