Power market participants face lack of transparency in German CHP plant production
Genscape has published a white paper addressing what factors have led to the lack of transparency in German Combined Heat & Power (CHP) production, the key issues that led to the current situation and what can be done to bring about change.
Using qualitative and quantitative analysis, the paper finds that CHP generation does not participate in the power markets the way conventional generation does, since many of the units are of a lesser size or are owned and operated by local municipalities.
Therefore, regular disclosure of any kind of unit-by-unit availability is not requested or expected by regulators.
As a result, market participants are not able to incorporate CHP production data in trading strategies and analysis, leading to challenges in accurate price determination and forecasting.
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