Key Statements at a Glance

• Market-driven expansion of renewable energies is possible, while overemphasis on funding needs causes distortions.
• A simple and limited investment premium is preferred as a transitional tool.
• Forward and PPA markets are key hedging instruments and should not be displaced by state guarantees.
• Contracts for differences weaken market price signals and the function of the German forward market as a "lead currency."
• Central capacity markets and combined models increase complexity, costs, and the risk of mismanagement and overdimensioning.
• If capacity mechanisms are introduced, they should be embedded at a European level; national solo approaches and lengthy aid procedures jeopardize planning certainty.
• Simple, quickly implementable solutions with minimal bureaucracy are preferable; market signals should dictate the plant configuration.
• Operating cost subsidies with repayment obligations increase risks and bid costs; investment grants avoid this.