Turbulent times

- By Risk Staff
- 17 Mar 2005

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Far from blowing away the post-Christmas hangovers, windy weather in Germany at the start of this year delivered a big headache to electricity traders at German power companies. Under the newly implemented Renewable Energy Sources Act (EEG), German utility companies are obliged to buy at a fixed price all the wind power generated in the country on any one day, regardless of electricity demand. The resulting effects were particularly pronounced in the first few days of this year when demand

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The new Renewable Sources Act obliges German utility companies to buy all the wind power generated in the country on any one day. And it is adding a new volatility to the German power market. By Stella Farrington

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