GERMAN ENERGY TRANSITION: BEST PRACTICES IN SECURING A RELIABLE AND EFFICIENT ENERGY SUPPLY AND SEIZING NEW MARKET OPPORTUNITIES DIRK VAHLAND / ENERGY MANAGEMENT
OVERVIEW 1 German energy transition 2 Negative impact on conventional power generation 3 Solution: new business model 18.06.2015 Dirk Vahland / Energy Management 2
GERMAN ENERGY TRANSITION: GERMAN POWER MARKET FACT AND FIGURES Guidelines and current status Political objective: renewables supply 80% of all power by 2050 all nuclear plants have to shut down by 2022 (12 GW) 26% of Germany s power came from renewables in 2014 Renewable power generation depends on weather conditions 2014 Economic growth +1.5% Power consumption -3.8% 20% 26% 15% 10% 18.06.2015 Dirk Vahland / Energy Management 3
GERMAN ENERGY TRANSITION: EXAMPLE ELECTRICITY PRODUCTION AND SPOT PRICES IN WEEK 52 2014* *Frauenhofer ISE 18.06.2015 Dirk Vahland / Energy Management 4
GERMAN ENERGY TRANSITION POWER PRICE /MWh 110,00 Total 95,00 80,00 Tax / Fees* EEG 61.70/MWh 65,00 50,00 35,00 EEG 35.30/MWh Phelix Cal 16 Bsld -56% 20,00 2011 2012 2013 2014 2015 Year * Reduced tax on electricity (Production Industry and Energy Management System ISO 50001), no reduction in relation to the Renewable Energy Law (EEG) 18.06.2015 Dirk Vahland / Energy Management 5
GERMAN ENERGY TRANSITION IMPLICATIONS >> Main conclusions Significant increase in renewable power plants Slight increase in conventional power plants Overcapacity drives down power prices Volatile renewables increasingly produce excess power in the grid Adjustments are needed to keep the grid stable Growing need for grid frequency regulation 18.06.2015 Dirk Vahland / Energy Management 6
NEGATIVE IMPACT ON CONVENTIONAL POWER GENERATION EXAMPLE INFRASERV Annual demand at Industriepark Höchst Electricity: 2,000 GWh Heat: 3,400 GWh Infraserv is an energy-intensive company! 18.06.2015 Dirk Vahland / Energy Management 7
NEGATIVE IMPACT ON CONVENTIONAL POWER GENERATION INFRASERV PLANT FLEET Infraserv heat and power plants Heating and power station 3 gas turbines 2 coal-fired boilers 3 gas-fired boilers Several waste disposal plants Installed power capacity: 335 MW Installed heat capacity: 950 MW Highly efficient combined heat and power (CHP) system! 18.06.2015 Dirk Vahland / Energy Management 8
NEGATIVE IMPACT ON CONVENTIONAL POWER GENERATION LOW POWER PRICE IS CHALLENGING 1. Power generation with open-cycle gas turbines is no longer economically viable! 2. Advantages of CHPs are on the decline! How to respond? Power plant resources planning Task: generate power / heat as cheaply as possible Solution: flexible partial-load operation Next level optimization Task: make better use of excess power Solution:??? 18.06.2015 Dirk Vahland / Energy Management 9
SOLUTION CREATE A NEW BUSINESS MODEL Major challenge: Appropriate use of excess power in order to offset low power price s Infraserv solution: Participating in the balancing market With existing plants: 3 gas turbines With new plants: 2 high voltage electrode boilers (20 MW each) 18.06.2015 Dirk Vahland / Energy Management 10
SOLUTION POWERTOHEAT >> Reliable, sustainable and efficient Supports grid stability in Germany Cuts costs and fossil fuel consumption Generates steam at a reasonable cost Power-to-heat absorbs excess power and generates steam! 18.06.2015 Dirk Vahland / Energy Management 11
SOLUTION INSTALLATION 2 HIGH VOLTAGE ELECTRODE BOILERS Lifting Boiler No. 2 Both boilers in position 18.06.2015 Dirk Vahland / Energy Management 12
ABSTRACT >> Wrap-up The German energy transition is a key challenge for all market participants Initiate a creative process and establish a new business model Transform the adverse effects into a competitive advantage 18.06.2015 Dirk Vahland / Energy Management 13
INFRASERV ENERGY MANAGEMENT FIELDS OF ACTIVITY Let s talk about your project Portfolio Management Power / Gas / Coal / CO2 Infraserv Energy Management Energy Service Advisor Design of Innovative Energy Concepts Energy Management System ISO 50001 18.06.2015 Dirk Vahland / Energy Management 14
ZUSAMMENFASSUNG THANK YOU! 15