Market premium model for biogas plants

Transcription

1 Market premium model for biogas plants Jonas Zingerle Paris, 13/10/2016

2 Short presentation of Clean Energy Sourcing 2 Clean Energy Sourcing Group: Company and Products

3 Short presentation of Clean Energy Sourcing 3 Green Energy Supply, Direct Marketing, and Virtual Power Plant We are one of the leading green power suppliers in Germany Over 8 TWh power sales to industrial and commercial customers Over MW in portfolio management of renewable energy and combined heat and power plants (CHP) One of the leading virtual power plants Prequalified supplier on the reserve power market (SRL & MRL) in Germany and Austria Flexible management of decentral power plants, power consumers and storage Our own 24/7 trading & operations cockpit Market access to all important trading platforms in Europe: EEX, EPEX Spot, EXAA, APX etc. Trading desk and 24/7 control room Analysis, prognosis, modelling More than 70 employees at our locations in Leipzig, Frankfurt and Vienna The Trading & Operations Cockpit runs 24/7 Clean Energy Sourcing Group: Company and Products

4 CLENS company profile 4 CLENS groups its three major business lines around the IT-enhanced Trading & Operations Cockpit (TOC) Power-supply of endcustomers Strong in industry and commerce Buy and resell power from distributed power plants Mainly through market premium model in Germany Trading & Operations Trading & Operation Cockpit Loadmanagement Price-oriented dispatching and balance power service for flexible power plants, consumption and storage assets

5 5 Market premium model how does it work?

6 6 The Market Premium Model allows to directly sell power of all types of renewable enrgy plants Basic principle: Operator no longer feeds production into the grid based on fixed feed-in tariffs as guaranteed by EEG, but sells it (usually via a direct marketing service provider) directly on power markets As sales revenues attainable in this way are lower than the plant-specific guaranteed EEG feed-in tariffs, the difference is compensated for by the so called market premium Market premium = EEG feed-in tariff - average market price + management premium The management premium sets an incentive for plant operators to switch to the Market Premium Model Market premium EEG feed-in tariff Management premium (MP) Difference between EEG feed-in tariff and average market price Market price for wind and PV plants is calculated as the technology-specific, volume-weighted monthly average price on the electricity exchange (EPEX Spot) Technology-specific market price

7 7 For each technology monthly market values are calculated based on hourly EPEX-Spot day-ahead market prices Management premium differs for technologies: Fluctuating technologies (Wind/PV): 4 /MWh Steady technologies (Biogas/Hydro): 2 /MWh

8 8 What does that mean for the daily business of a direct marketing service provider? As balancing responsible party, direct marketer need to deliver binding ¼- h generation schedules high quality of forecast is crucial Scheduled volumes are generally sold day-ahead on spot markets (EPEX) deviations from scheduled production are settled Imbalance prices are relatively volatile and can be positive or negative => risks! predictibility of a power plants production is importat part of pricing models

9 Market places - overview Financial level Physical level Wholesale-market Ancillary services Power Exchange Over-the-counter (OTC) Reserve power market Spot market Futures + Options market Spotmarkt Continuous Trading Futures Forwards, Options Primary reserve Day-Ahead-Auction Secondary reserve Intraday Auction + Continuous Trading Tertiary reserve

10 Market places - overview Financial level Physical level Wholesale-market Ancillary services Power Exchange Over-the-counter (OTC) Reserve power market Spot market Futures + Options market Spotmarkt Continuous Trading Futures Forwards, Options Primary reserve Day-Ahead-Auction Secondary reserve Intraday Auction + Continuous Trading Tertiary reserve

11 11 Market results Development of day-ahead spot market prices 21,54 Clean Energy Sourcing Group: Company and Products

12 Merit Order Modell Price [ /MWh] demand gas oil Marginal costs/supply hardcoal Price P1 Price P2 Margin nuclear lignite Renewables Leistung [GW]

13 Capacity installed, GW] Seite 13 What is coming next? 20 % share RES 40 % share RES 80 % share RES Share of fluctuating renewables (wind+pv) get bigger Value of base load will decrease Demand for flexibility is growing Price-spreads will increase and occur more often red: demand (2010) green: generation wind & solar source: Prof. Dr. Stadler/ Westfalen Wind GmbH

14 14 CLENS holistic optimization approach provides best results across all market places. Order of bidding Order of forecast Secondary reserve Tertiary reserve Early, binding scheduling vs. Short-term flexibility Spot (day ahead) Intraday Placement Wednesday Workday: Until 10 AM Workday: Until noon Up to 45Min before fulfilment Provision-/ supply-period Week after: Monday till sunday Day after until next workday Day after until next workday Same day Product length Peak & off-peak 6 x 4 hours 24 x 1 hour 24 x 1 hour 96 x ¼ hour Binding commitment Granularity of products

15 Optimization outcome last week 15 => Additional value of optimized schedule to average market value 10 /MWh => Additional value of optimized schedule to average market value 1,50 /MWh

16 16 Market environment changes flexibility wins!

17 .Questions? 17 Jonas Zingerle Business Development Katharinenstraße Leipzig jonas.zingerle@

18 Regelenergiearten Produktsegment Ausschreibung Mind.-Angebot Aktivierung Zeitscheiben Vergütung Primärregelleistung Wöchentlich 1 MW <30 Sekunden vollautomatisch 1/Woche Leistungspreis Sekundärregelleistung Wöchentlich 5 MW < 5 Minuten vollautomatisch Peak & Off-Peak Leistungspreis & Arbeitspreis Minutenreserveleistung Täglich 5 MW <15 Minuten teilautomatisiert 6x4h/Tag Leistungspreis & Arbeitspreis Reihenfolge der Aktivierung Primärregelung Sekundärregelung Minutenreserve 5 s 30 s 5 min 15 min 1 h

19 /MWh Volatility on ID-Market (continuous) Entwicklung der Spotmärkte Stundenauktion (EPEX DA) vs. 1/4-Stundenauktion (EPEX15 ) EPEX 15 EPEX DA

20 Prognose Energy Brainpool: Volatility increases and flexibility wins! Baseload Quelle: Energy Brainpool