On October 8, 2012, Andreas Jahn presented to German authorities and stakeholders on the topic of capability markets. Mr. Jahn addressed the challenge of delivering reliable power supply to consumers at least cost, when that supply consists of a high proportion of renewable energy sources. Existing market models may not sufficiently drive the required investments in flexible resources, as these markets were designed only to ensure enough firm resources to cover peak demand. Even with the different supply mix, including an unprecedented share of variable renewables, such as wind and solar, system operators still need to maintain system reliability at reasonable costs. Mr. Jahn highlighted the need for a market structure that incentivizes investment in flexible resources and the optimal use of existing resources as requisite to achieve this system reliability.