Opinion Exchange

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.
belchatow coal power station, poland

The (Almost) Black Monday in Poland

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.
Selection of VPP units through the algorithm of the control system

How Are Units in a VPP Selected to Provide Ancillary Services?

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 reserves? Which components are included in the evaluation?
VPP: Planning a Virtual Power Plant

The Top 10 Questions When Planning a Virtual Power Plant

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.
Negative Electricity Prices

Negative electricity prices: Fever symptoms or business as usual?

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.

Bulk Loss Risk: How Conventional Power Plants Endanger Security of Supply

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 Corona crisis and the electricity market

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?
windpower-feed-in winter 2020

Winter belongs to Wind Power

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?
Business Model of a Power Aggregator

What’s the business model of a Virtual Power Plant (VPP)?

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?
Side effects of energy system change

For information on risks and side effects, ask your network operator or the Minister of Economic Affairs...

Everyone is talking about the transformation of the energy system. But what exactly does this transformation involve?
PV Market Value Outlook

Face towards the Sun: An Analysis of PV Market Value Factors

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.
Power Market in Thailand

Next Stop: Thailand

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.
NEMOCS for Russia

Next Stop: Russia

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.

Lessons learnt from Germany’s mixed price system

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.

Next Stop: China

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.

Spotlight NEMOCS: Starting a VPP with Haezoom

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.
The big sellout at the Control Reserve Market

The big sellout at the Control Reserve Market

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.
Johannes Paeffgen, CTO

EPEX: data failure, decoupling, disaster?

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.
Hendrik Saemisch, Founder and CEO of Next Kraftwerke

"Policy can no longer stop the breakthrough of renewables"

Clean Energy Wire interviewed our co-founder and CEO Hendrik Sämisch on milestones for the company and the energy transition.

Sunny prospects

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.
India Power, India Power market

Next Stop: India

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.

Spotlight NEMOCS: Setting up a VPP with Ecotricity

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.
Krautz and Romberg investigating the energy sector in Japan

Next Stop: Japan

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.

Who is disrupting the utility frequency?

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.

Renewable Energy Island - Part 2

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.

Renewable Energy Island - Part 1

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.
electricity fluctuations, reliable supply

Afraid of the dark

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".

Towards a more democratized energy world

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.
Virtual Power Plants lead Energy Markets of the Future

The dance of generation and demand

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.
SAIDI - lights don't go out

SAIDI – when the lights (don't) go out

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?
Amani Jonas, Power Trader

Decentralized energy, seen through the eyes of a power trader

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.
Leveraging the potential of VPPs by shifting power production and consumption

First shift, then store

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?

A storm turns to gas

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.

How to balance supply and demand on new electricity markets

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.

Digitalization: Where are the German digital utilities?

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.