We do not only trade power, we also exchange ideas
The rapid rise of renewable power generation has already fundamentally changed and continues to disrupt the traditional energy landscape. In markets such as Germany the disruption has reached levels that the traditional approaches where different types of conventional plants were dispatched to meet variable demand can no longer apply. In our Blog OPX, we want to exchange opinions on the energy system of the future and share our experience from and our view on a market that already has transformed to a great extend in the past years.
For several months, the German power exchange prices have been moving in only one direction: straight up. In an interview with our electricity trader Jan Egidi, we take a closer look at this development and talk about the implications of this trend for the German renewables industry.
Most complex software applications need some form of configuration, often through a configuration file. The more complicated the app, the more difficult become the choices between offering flexibility and improving usability. Configuration is the solution to get the best of both worlds. However, getting it right takes knowledge, experience and discipline and often requires having made all the usual mistakes yourself and learned from them. Now, our team of developers and data-analysts has published their solution to this problem as an open-source python library: PyConfig.
When Next Kraftwerke expanded its operations to Belgium in 2014, one of its goals was to convince the transmission grid operator Elia to open its automatic Frequency Restoration Reserve (aFRR) market for all technologies. aFRR, also known as secondary reserve, has historically been provided by a handful of gas fired power plants operated by two or three companies.
Hendrik Sämisch and Jochen Schwill, founders and CEOs of Next Kraftwerke, on the partnership with Shell Renewables & Energy Solutions
We need more flexibility in the electricity grid, in the electricity market, in the entire electricity system. One can hear these demands repeatedly in connection with the energy transition. This is because an increase in the share of wind and solar in the electricity mix, which generate electricity in a volatile manner and can only be controlled to a limited extent, poses new challenges for the electricity grid.
After two years of development, in August 2020, Next Kraftwerke and Jedlix started offering secondary reserve power (aFRR) to the Dutch grid using a pool of electric vehicles (EVs). Nick Hubbers, Jedlix, and Elias De Keyser, Next Kraftwerke, talk about their ambitions, how they realized this project, and what they learned along the way on using electric vehicles to balance the grid. Fasten your seat belts and keep reading!
On Friday 14 Aug, an extremely hot and dry day in California and the west, California’s independent system operator (CAISO) had to resort to limited rolling blackouts that affected approximately 400,000 customers in California on Friday and the following Saturday 15 Aug.
On June 22 of 2020, Poland came very close to a countrywide power outage: Power plants with a capacity of thirteen gigawatts (out of which, only six planned) went down – and subsequently, balancing energy prices rose to record level.
In a Virtual Power Plant, thousands of systems provide balancing services every day. But how exactly are the individual units selected for the provision of balancing energy? Which factors are taken into consideration?
Anyone who wants to aggregate decentralized plants in a Virtual Power Plant is confronted with a whole range of questions during the planning phase: Which business cases are feasible in the regulatory context of my country - and which ones make economic sense in this market environment? How can I connect the technical units in my Virtual Power Plant and which solutions meet the technical requirements of the grid operator? We compiled the top 10 questions each aggregator-to-be need to find an answer for.
Since the beginning of the corona crisis, negative power prices have become quite common for electricity traders: In this blog, we explain how negative electricity prices develop and what is positive about them.
The opinion persists that too many renewable energies in the energy mix would endanger the security of supply. Although there are currently still challenges that renewables cannot (yet) solve entirely on their own - keyword dark doldrums - the trend of the last few years shows that the security of supply in Germany has not declined, despite an increasing share of distributed renewable and volatile electricity producers. On the contrary, it has even increased. The Federal Network Agency publishes the SAIDI, which is the System Average Interruption Duration Index that documents the energy supply disruptions of a year and in which the cause of these disruptions is also identified – showing the increase in security of supply despite a simultaneous increase in renewable energies.
The COVID-19 pandemic shakes up the world - but the power grid in Europe remains stable. What ensures this stability and how do the electricity markets in Germany and Europe react to the situation?
For weeks now, Germany and its European neighbors have had a peak season for wind power. The winter storms Sabine (also known as Ciara or Elsa), Victoria (known as Dennis in UK) and Yulia brought new records - most recently the unprecedented peak value of 46.2 gigawatts (GW). Renewables accounted for 69 percent of net electricity production in the third week of February, with wind accounting for 55 percent. Never before has so much wind power been fed into the German power grid. Are these figures the result of extreme weather conditions, which simply brought us an extraordinary number of storms this winter, or is there a general trend here? And how does the German energy system actually cope with these record values?
For a couple of years now, the role of the Virtual Power Plant has been established in the energy industry. Today, it is pretty clear what a Virtual Power Plant is and why it makes sense to network, forecast, optimize, and dispatch a fleet of coordinated distributed energy resources (DER) such as wind, solar, bioenergy, hydropower, batteries, electrolyzers, and many more. But how do you make money with a Virtual Power Plant? What’s the business case of a VPP operator, or to use a synonym, of an aggregator?
Everyone is talking about the transformation of the energy system. But what exactly does this transformation involve?
How will the market value of electricity from photovoltaics develop over the next few years? In our blog we explain the results of a fundamental study by r2b energy consulting on the market value of photovoltaics in the coming years.
The journey to the world's electricity markets continues: This time Felix Jedamzik and Tobias Romberg from our Business Development team were on the road in Thailand and report on their impressions.
Our blog series reports on the electricity markets of the world. Our next stop is Russia - Tobias Weghorn, International Business Development Manager at Next Kraftwerke, explored the country's VPP potential.
Jan de Decker, Paul Kreutzkamp and Elias de Keyser from Next Kraftwerke Belgium explain in this blog what lessons can be learnt from the roughly nine months of the mixed price system on the reserve power market in Germany.
In our blog series "Next Stop" we are taking a closer at various global energy landscapes. This time our stop is in China, where Jan Völpel from our "nnovation & Development team at Next Kraftwerke visited a workshop on demand side flexibility.
Venturing into a green energy landscape – especially in countries with no established subsidy schemes for renewables – is a huge undertaking, but also leaves a lot of room for establishing new approaches. South Korea is a country that is still in its first steps of establishing a decentralized green energy industry. Haezoom is a start-up from South Korea that specializes in solar power production. Together with Next Kraftwerke, the Seoul-based company sets out to explore the possibilities of utilizing a VPP. We talked with J-Ho Lee, Product Owner (PO) from Haezoom, and Felix Jedamzik, Key Account Manager NEMOCS at Next Kraftwerke.
How the mixed-pricing system turns the security of the electricity grid into a speculative mass: On the sixth, 12th and 25th of June 2019, market distortions occurred in Germany; some of which had severe effects on the electricity grid.
Due to a faulty data package, the European electricity exchange EPEX in Paris decoupled the European electricity market on June 7, 2019. This caused a great deal of excitement on the markets. Johannes Päffgen, Head of Energy Trading at Next Kraftwerke, explains the causes and consequences in an interview.
Clean Energy Wire interviewed our co-founder and CEO Hendrik Sämisch on milestones for the company and the energy transition.
Good solar forecasts create significant added value. They optimize sales for photovoltaic assets, which leads to lower balancing and control reserve costs. Complicated algorithms working in the background ensure that the forecasts are as accurate as possible. They process large volumes of data from multiple sources so traders are well-positioned on the market.
Our new series of blog posts covers power markets throughout the world. Our next stop is India – Ravi Vaidya is writing his master thesis on Non-European Flexibility Markets at Next Kraftwerke as part of our Innovation & Development team. Together with Jonas Simon, who has just been to India on a business trip, they discuss the Indian energy market.
Ecotricity from Great Britain is the first green electricity company providing green energy solutions since 1996. For their future projects, the Stroud based company turned to Next Kraftwerke for setting up a Virtual Power Plant based on its software-as-a-solution NEMOCS. We asked Mark Meyrick, Head of Trading and Smart Grids at Ecotricity, and Tobias Weghorn, NEMOCS product specialist at Next Kraftwerke, about the first steps in setting up a VPP of their own.
Our new series of blog posts covers power markets throughout the world. To kick things off, Alexander Krautz and Tobias Romberg discuss their trip to Japan.
On 10 January 2019, the utility frequency of Europe’s power grid dropped to 49.8 hertz. Many factors contributed to the near-blackout that evening, but the incident is not the only one in recent weeks that has shaken the grid.
In the second part of our series, we will talk about different concepts for Virtual Power Plants on islands and island groups for providing a sustainable and secure power supply.
Somewhere in the big blue ocean, there lies an island that can serve as a blueprint for the approach to tackle the challenges of climate change with a self-sufficient supply through renewable energies.
In the German language, there is a word that refers to the fear of having inadequate sunshine or wind to maintain a viable supply of renewable energy: dunkelflaute. The dramatic connotation of the word may be lost a bit in translation, but essentially, dunkelflaute means “a dark lull".
This interview with Jochen Schwill (CEO of Next Kraftwerke) was first published in The Beam #5. Jochen Schwill (CEO of Next Kraftwerke) talks about the fundamentals of a Virtual Power Plant and the idea behind it.
Flexibility is the defining principle of tomorrow's electricity market: Helen Steiniger analyses the transition from inflexible concepts of the past to the dynamic electricity markets of the future.
More renewable energy means less grid stability – this concern is often repeated by critics of renewable energy. But how is the stability of the grid actually measured?
A successful energy transition is dependent on integrating decentralized energy systems. To clarify important questions regarding decentralization – including the upsides and challenges for energy systems – we spoke with Next Kraftwerke’s in-house power trader, Amani Joas.
In our future energy systems we will pretty often see times where, let’s say, a sudden storm front brings heaps of cheap and green and beautiful but, alas, in that particular time unneeded wind power into the system. And we will see times where the opposite happens: a sudden shortage of wind and solar power. What can we do about it?
Winter storm Axel, which set the current wind energy record in Germany, was also the source of a large wind power excess in Germany - and a considerable amount of hydrogen gas for the municipal utility company in the town of Hassfurt. There, the power-to-gas (PtG) installation, owned jointly by the city utility and Greenpeace Energy, stored the excess and particularly cheap wind energy in a matter of seconds as hydrogen wind gas.
Electricity markets around the world are experiencing a fundamental change: the rapid rise of renewable power generation. In some places the power generation of renewables is occasionally exceeding the total demand in the electricity grid.
In Germany, a lot has been written about two energy megatrends of our time, liberalisation of energy markets and decentralisation of the energy landscape. What we think has been neglected is a third megatrend: digitalisation.