Flexibility prices in Germany

Neither the term “flexibility” itself nor its pricing principles are well defined and commonly accepted. Flexibility shall be defined by using the hourly, daily, monthly, quarterly, seasonal and annual quantity restrictions defined in supply or storage contracts. The flexibility prices can currently be only deducted from other market prices/indicators. Both of them decreased during the last years. This is confirmed by analysis of results of storage capacity auctions. Assuming an increase of the European natural gas markets’ liquidity the quotation of derivatives, particularly options, on natural gas is recommended – plugging the gap and putting a price tag on flexibility.