We examine the large‐scale integration of electricity from renewable sources (RES‐E) into the German energy market.
Seriously negative prices at the wholesale market suggest that market design could be improved.
We argue that allowing flexible use of voluntary curtailment agreements (VCA), while keeping the priority feed‐in rule, would increase the total system’s efficiency.
Improved investment conditions due to flexible use of VCAs leading to higher installed RES‐E capacity could offset the reduced wind output and would not impede climate policy goals.
