As part of the joint project “Flexibility in the market” (FlexIMa), the authors investigated how modifications to the state-induced electricity price components can create incentives for flexibility in the electricity system. The effectiveness of the incentives that increase flexibility depends in particular on from designing grid-supportive price signals in a way that is cause-based and behavior-directing. Dynamic designs in particular are able to meet these requirements. Taxes and levies pose both legal and practical obstacles to a dynamic design, which is why, in view of the comparatively small share of the total electricity price, using them as an incentive for flexibility does not appear suitable. Grid charges, on the other hand, as the largest state electricity price component, offer various options for sending price signals that are both action-guiding and cause-related, thus leveraging flexibility potential.
FlexIMa analyses the economic and legal requirements for a market-driven ramp-up of flexibility in the electricity system.
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