Increasing renewable feed-in in Germany leads to growing network congestion forcing transportation system operators to (geographically) redispatch power plants. The introduction of a load aggregation pricing (LAP) system following Californian experiences offers an alternative to this form of system rebalancing. As a hybrid between zonal pricing and a single pricing zone (then including redispatching), LAP uses zonal prices for producers while at the same time maintain uniform pricing for electricity customers. This solution faces less political opposition and gives incentives for efficient investment and dispatch—also for renewables being linked to market prices. In addition, incentives for network investment will be increased.
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