Düsseldorf Higher Regional Court overturns mixed-price system

Published: 22. July 2019

The Düsseldorf Higher Regional Court (OLG) has upheld Next Kraftwerke's claim and annulled the mixed-price system on the balancing energy market. This will probably revive the previously valid tender procedure on the basis of capacity prices.

Hendrik Sämisch, founder and CEO of Next Kraftwerke: "We are pleased that the Higher Regional Court has followed our reasoning and has judged the mixed-price system to be a too intensive intervention for the market participants. Therefore, the decision of the Düsseldorf Higher Regional Court is good news for the electricity grid, the grid users and the energy transition. The mixed-price system has led to more extreme grid situations, pushed up the total costs for the balancing energy market and put cleantech solutions at a disadvantage."

Directly after the introduction in July 2018, Next Kraftwerke, supported by other market participants and accompanied by the law firm Osborne Clarke, filed a lawsuit against the mixed-price system and initially postponed its introduction. This suspensive effect expired in October 2018. Since then the mixed-price system has applied to the balancing energy market.

Next Kraftwerke

Next Kraftwerke operates one of the biggest Virtual Power Plants in Europe. By utilizing the full potential of digitalization, the company networks thousands of energy-producing and energy-consuming units in the Virtual Power Plant “Next Pool”. Through its technology and trading, clients are able to produce and consume electricity when prices are best for them. By trading their aggregated power 24/7 on different energy spot markets the Virtual Power Plant also makes a substantial contribution to stabilizing the grid by smartly distributing the power generated and consumed by the individual units in times of peak load.