Challenges and possibilities of handling more wind power in the power system. Wind 2015, Helsinki 29 October

Transcription

1 Challenges and possibilities of handling more wind power in the power system Wind 2015, Helsinki 29 October

2 Neas Energy in brief Neas Energy is an independent energy asset management company that provides physical and financial management of energy for customers with assets operating on liberal energy markets in Europe. Power Plants & CHP Plants Renewables (Wind, PV and Hydro) Utilities & Supply companies Neas Energy was established in 1998 in Aalborg, Denmark. Since 2011 we are owned by a group of private equity investors. In 2015 Denmark s largest pension fund ATP and private equity firm Via Venture Partners acquired 30% of the company and invested yet another 250 MDKK. Key figures 2014: Turnover: MDKK ( GWh) EBIT: 113,5 MDKK No. Of Employees: Approx. 200

3 Portfolio 1,660 MW 5,028 MW TWh 109,353 MWh Installed capacity combined heat and power Installed capacity Renewables Supply & large scale consumption Natural gas trading turnover daily (avg.) Renewable energy certificates (EECS, TÜV, Elcerts, RECs)

4 Your gateway to the market Physical and financial handling of renewable energy: Forecasting Trading Data Balancing Scheduling Structuring Certificates

5 Challenges and possibilities of handling more wind power in the power system Increased amount of wind power will demand increased flexibility from wind Wind turbines must take part in the market as other types of generation

6 The Merit Order Nordic Power Market EUR/MWh Demand Night Day Peak Supply Gas turbines Price A (low wind) Price B (high wind) CHP plants Condensing plants Sun, wind and nuclear Streaming hydro Regulated hydro MWh

7 The new scenario Wind penetration in Denmark % Danish wind is flexible adaptive also to German market Negative prices a result of increased wind (and PV) Protection against negative spot prices Potential for extra earnings in the market for regulating power

8 Wind turbines must take active part in the market as other types of generation Must act on market signals in order to: Increase earnings Handle risks Improve the acceptance of wind (TSO and public) Must participate in all markets available Day Ahead Protection against negative spot prices Intra day Protection against negative balance prices and possible earnings Regulating power Potential extra earnings It will lower balance costs for wind

9 Time-line power market Deadline for bids on Nord Pool Spot exchange Nord Pool publicies prices and amounts traded Day ahead Deadline submission of Schedules for TSO Bidding on Elbas and TSO s Regulating Power Market TSO maintains physical balance by use of regulating power 13:00 Day of operation Trade 12:00 Operation Day Ahead 15:00 Settlement

10 Portfolio Characteristics - Denmark Installed capacity - NEAS controllable WTG s DK

11 Sund & Bælt wind farm Sprogø 21 MW

12 Managing Negative Spot Prices Case: Sund & Bælt wind farm 16. March 2014

13 Savings for WTG owners 16th of March 2014 S&B wind farm 21 MW 7 hours with negative spotprices Average spotprice 37 EUR/MWh Average production 15 MWh for 7hours = 105 MWh s Savings in 7 h period = EUR

14 Market for regulating power 1. Primary reserves Response time is seconds. 2. Automatiske reserves (LFC) Response time 30 seconds to 15 minutes. 3. Manual reserves 15 min activation Hourly auction Marginal price market (last price is valid for all) Paid per activation Upward regulation price > Spot price Downward regulation price < Spot pris

15 Bidding in the market for regulating power Which bids are possible? Bids on Downward regulation bids are submitted 1 hour before the hour Bids on Upward regulation bids are submitted 1 hour before the hour of operation Smallest bid is 10 MW - highest bid is 30 MW (Making the production capacity available (CHP) - Auction day before the operating day this is not possible WTG s)

16 Managing Negative balancing Price for regulating power Case: Downward regulation 9. August 2014 Upward: What you get paid to produce Downward: What you can by back for

17 Potential earnings for WTG owners 9th of August 2015 downward regulation 250MW downward regulation to 80 MW 170 MW in a 7 hour period Spot price DW Reg price MW's regulated Extra earnings Marginal price of op. Total earnings Compared to SP Total earnings 7 hours

18 Market opportunities Market opportunities for Independent Power Producers (IPP s) Reduce costs for IPP s Extra earnings in a market where regulating power prices are low. Market opportunities for Aggregators (NEAS) Handling of Renewables in balancing pool becomes more dynamic. Act on market signals Dynamic handling => better possibility to manage risks related to handling

19 Thank you for your attention Sten Lillienau Key Account Manager Stockholm Jens Tang Vice President, Renewables Generation Aalborg Web: