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German energy regulator approves rules for future capacity reserve

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German energy regulator approves rules for future capacity reserve

German energy regulator Bundesnetzagentur approved standard terms and conditions for transmission system operators to contract reserve power capacity.

The terms and conditions include rules about the availability and use of capacity reserve plants, remuneration, contractual penalties and legal consequences, Bundesnetzagentur said.

Transmission system operators determine which plants are to be held in a 2-GW capacity reserve every two years using a tendering procedure. The tender procedure for the Oct. 1, 2020, to Sept. 30, 2022, delivery period will run from Sept. 1 to Dec. 1.

"The capacity reserve is to be kept for highly unusual circumstances. It will safeguard the electricity market in the event that there is not enough generating capacity available," Bundesnetzagentur Vice President Peter Franke said in an Aug. 2 statement.