TRANSORMATION OF ELECTRIC POWER INDUSTRY IN GERMANY

The mail purpose of the article is to study the German electricity market, which is actively developing. The study findings revealed that moreover 100 years the natural monopoly structure dominated the electricity market in Germany. Despite the expectations liberalization of electric power industry of the country has led to further monopolization of the sector. Problems encountered due to the liberalization were identified It was proved that the market competition mechanisms announced as the main goal of the liberalization of electricity sector started to work only at the stage of electricity generation. The diversification of suppliers, the significant reduction of the cost and wholesale energy price are taking place right here. in the article the current changes are characterized. The article notes that the goals of alternative energy development, set at the state level, required the restructuring of the entire energy system in Germany. Analysis of the current situation confirmed that companies change strategy and tactics of activity on the electric power market, adjusting to new realities. From one hand, the market activities are tightly controlled by the government. From the other hand, both private and public capital are struggling for investment-attractive sectors which are subsidized by the government. Simultaneously with the liberalization of the power market, the German government supported the development of alternative energy. Under condition of the so called "energy transition" we see that electricity market is divided between the largest players by the fields of economic activities. Vertically integrated companies get rid of large power plants, concentrating their activity on innovative directions of the power industry development. It's worth mentioning the renewable energy use as well as the network business, decentralized energy supply and power distribution. The situation in the electric power industry of Germany was studied both at the level of activity of large companies and at the level of work of municipalities. It is shown that it is difficult for them to retain their positions in the electric power market. At the same time, the greatest activity of public utilities is observed in the sphere of organization of decentralized energy supply.