GERMANY Law and Practice Contributed by: Udo Olgemoeller, Nicolaus Ascherfeld, Johann von Pachelbel and Janina Müller, A&O Shearman
2.3 Supply Mix of Electricity Germany’s supply mix includes renewables (wind, solar, biomass), coal, natural gas and limited nuclear (to be phased out by 2023). Renewables account for over 50% of generations. The seasonal and hourly profile of the mix exhibits pronounced variability due to wind and solar patterns, leading to more frequent periods of low or negative wholesale prices during high renewable output and higher reliance on imports or flexible resources during Dunkelflaute conditions. 2.4 Market Concentration Limits Limits Germany does not impose bright‑line statutory caps on market shares in electricity generation or retail sup- ply, but the competition law framework under the GWB prohibits abuse of dominance and anti‑competitive agreements, and subjects mergers and acquisitions to review based on substantial impediment to effective competition. The BKartA is the principal authority, with the European Commission being competent in cases meeting EU thresholds. Enforcement The BKartA monitors market structures and may impose remedies or prohibit transactions that would create or strengthen dominant positions. It can sanc- tion anti‑competitive conduct with fines and behav- ioural or structural remedies, and sector‑specific rules in the EnWG require non‑discriminatory access to essential facilities such as networks. Where market power issues arise in the wholesale market, additional oversight comes from REMIT‑based market surveil- lance by the BNetzA, which can investigate and sanc- tion market manipulation and insider trading; enforce- ment can result in significant administrative penalties, disgorgement of gains, and compliance undertakings, as well as private damages actions in civil courts. 2.5 Surveillance to Detect Anti-Competitive Behaviour Agency The BKartA and the BNetzA conduct market surveil- lance. Relevant laws include the GWB and the EnWG. Powers Competition law enforcement against cartels, abuse of dominance and anti‑competitive mergers is conduct-
Nodal Pricing There is no nodal pricing; instead, Germany and Lux- embourg form a single bidding zone for day‑ahead and intraday markets, with internal congestion man- aged through redispatch, countertrading and curtail- ment, and cross‑border trade integrated via market coupling across interconnectors. High-Load Consumers High-load consumers such as data centres are addressed through a combination of network tariff structures, demand-side flexibility participation, and regulatory provisions on controllable consumption devices that enable network operators to mitigate peak-load impacts in exchange for tariff benefits, with additional energy efficiency and waste-heat utilisa- tion obligations emerging from the Energy Efficiency Act ( Energieeffizienzgesetz – EnEfG) and related pol- icy instruments. Planned amendments to the EnEfG would relax the currently stringent requirements on energy efficiency and waste-heat utilisation for data centres. Whether data centres could be prioritised for grid connection or whether capacity quotas could be allocated to individual industries is also being dis- cussed. 2.2 Electricity Imports and Exports Import and Export Imports and exports are permitted, with major inter- connections to Austria, Belgium, the Czech Republic, Denmark, France, Luxembourg, Poland, Switzerland and the Netherlands. An interconnector between Ger- many and the UK has been planned, and others are being considered. Reviews and Approvals Cross-border flows are co-ordinated by TSOs and are subject to EU and German regulations. Cross‑border transmission capacity is allocated through mar- ket coupling mechanisms and explicit auctions, as appropriate, and market participants do not require transaction‑specific public approvals beyond stand- ard market registration and balancing responsibility; interconnector development and operation are sub- ject to regulatory approvals and, for certain projects, designation as projects of common interest under EU law.
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