German utility shuts down fossil-fires plants in face of renewable supply.

REW: “Troubled German utility group Energie Baden-Württemberg AG (EnBW) has announced that it intends to shut down a total of four fossil-fuelled power plants as a result of the increasing volumes of renewable energy capacity in the country’s energy market.” “With renewable energy given priority in the despatch merit order, this, the company argues, means that fossil-fired facilities are frequently being operated solely as ‘marginal capacity’ — during periods of peak power demand or when renewable energy outputs are low. This results in a drastic fall in revenue, it adds. ….without intervention it seems likely that this process of decommissioning more expensive installations will likely continue. Potentially, stability margins may become so thin that they are unable to cope with a significant variation in renewable energy capacity output — at which point the lights go out. This would be a bad thing.
One nation attempting to address this issue is the UK, which along with revealing its renewable energy strike prices also recently unveiled plans for a capacity market. Due to come into operation in 2014, following the enactment of a new raft of energy policy later this year, the Department of Energy and Climate Change (DECC) says the measures to bring on gas and other flexible electricity supply are designed to reduce risks to security of supply from winter 2018.”