WG1: Exchange on Capacity Markets

On 29 November, the Japanese German Energy Partnership facilitated a closed digital exchange focusing on capacity markets, bringing together experts from both nations. This high-level dialogue featured representatives from Japan's Ministry of Economy, Trade and Industry (METI) and Germany's Federal Ministry for Economic Affairs and Energy (BMWK).

The exchange centered on two key topics: Japan's capacity mechanism, with a spotlight on the design and results of the first Long-Term Decarbonization Power Source Auctions, and Germany's ongoing discussions around the implementation of a combined capacity market, which includes elements of a central and decentralized capacity market. This forum provided a valuable platform for both countries to share insights on addressing a common challenge: incentivizing investments into sufficient climate-friendly power capacities for the future.

Participants engaged in a fruitful and constructive dialogue, exchanging best practices and experiences. The event highlighted the ample opportunities for mutual learning between the two countries, as both navigate the complexities of energy transition. This expert exchange underscores the commitment of both countries to fostering innovative solutions in energy policy and reinforces the importance of international cooperation in addressing global energy challenges.

Organized in the framework of working group 1 of the Japanese-German Energy Partnership between METI and the BMWK, by adelphi and the German Chamber of Commerce and Industry in Japan (AHK Japan).