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All about European grid

Knowledge / Energy Grid / European grid / Grid Balancing / Knowledge

Transmission Code

What is the Transmission Code?Definition

The Transmission Code 2007 is a set of rules in which the four transmission system operators define the conditions to access the German electricity grid. It was first drawn up in 1998 by the Association of German Grid Operators (now "Forum Netztechnik/Netzbetrieb" as part of the VDE) in response to the liberalization of the electricity market through the amendment of the Energy Industry Act (EnWG). The Transmission Code - sometimes also known as the Grid Code - defines the conditions for access to the German grid control network, since the 1998 revision of the EnWG (Energy Industry Act) implemented the separation of electricity generation, transport, and distribution ("unbundling"). The current German version was adopted in 2007; the European Transmission System Operators’ Association (ENTSO-E) is currently preparing a European version.

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Knowledge / Entsoe-e / European grid / Knowledge / Power Grid

Cross-Border Interconnectors

What are Cross-Border Interconnectors?Definition

To turn national electricity grids into a large European electricity market, the various national transmission system operators (TSOs) need transit capacity for cross-border electricity trade. These border connection points, also called cross-border interconnectors, enable TSOs at international level to transfer electricity from one national grid to another. Only cross-border interconnectors can turn on-balance-sheet electricity trading into real, physical electricity deliveries. Their expansion is therefore a central starting point of the European Commission's electricity market policy and the implementation of the integrated European energy market.

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Knowledge / Control Reserve / European grid / Grid Balancing / Knowledge

What is the Electricity Balancing Guideline (EBGL)?

What is the Electricity Balancing Guideline (EBGL)?Definition

The Electricity Balancing Guideline (EBGL) was created by the European Commission to establish and regulate the smooth exchange of balancing energy across the internal borders of the European Union. This guideline, which came into force as Regulation 2017/2195, sets the framework for the stabilization of the electricity grid throughout the European electricity market system. The aim is a pan-European market for system services with a harmonized market design and non-discriminatory trading of balancing energy without barriers between markets. As a result, TSOs will be able to procure balancing power more efficiently, more reliably, and cheaper.

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Occurence of negative electricity prices in the power system explained.
Energy Blog / Energy Exchange / Energy Market / Energy Trading / European grid / Renewable Energy

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.

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Knowledge / aFRR / Control Reserve / European grid / FCR / Knowledge / mFRR

Balancing Services

What are Balancing Services?Definition

Balancing Services are reactive short-term means to level out frequency deviations in the power grid. Balancing Services (sometimes also called control reserve) is one out of many ancillary services that system operators have to provide a secure power supply. Balancing Services include Balancing Energy and Balancing Capacity . Balancing Energy means the energy which is used by system operators to perform the maintenance of the frequency and Balancing Capacity refers to a flexible capacity which the provider has agreed to keep available for a certain period in order to provide balancing energy. [1]

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Knowledge / Electricity Market / European grid / Knowledge / Market integration

Liberalization and Unbundling of Energy Markets

What does Liberalization and Unbundling of Energy Markets mean?Definition

The liberalization of the energy market means the opening of the electricity and gas market to free competition. This has broken up existing monopolies and opened the market to more participants. In most cases, liberalization was accompanied by unbundling, which made a distinction between generation, transmission and distribution/retail in the energy sector. The aim was to make electricity supply more efficient by integrating competitive forces where possible and by integrating regulation where necessary. In Europe, liberalization began in 1996 with the adoption of the first European Directive.

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Windpower feed-in was high in the winter of 2020.
Energy Blog / Energy Market / Energy Transition / European grid / Renewable Energy / Wind Energy

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?

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Market value factors of electricity coming from solar panels.
Energy Blog / Energy Market / Energy Trading / European grid / Photovoltaics / PV

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.

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Knowledge / Electricity Market / European grid / Knowledge / Market integration

Market Coupling

What is Market Coupling?Definition

The term market coupling refers to the aim to form an interconnected (European) market for electricity. Market coupling is intended to link control areas and market areas in order to harmonize different systems of electricity exchanges and, in particular, to reduce price differences. This way, the electricity market is to some extent aligned with the physical reality of electricity flows, since neighbouring electricity grids are in any case physically interconnected and electricity always takes the shortest route from producer to consumer - across market boundaries. Market coupling systems (PCR, FBMC and XBID) exist both in day-ahead trading and in intraday markets. This is also valid for electricity markets outside Europe, but the details provided here refer to the European market only.

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Johannes Paeffgen is the leader of the trading department at Next Kraftwerke
Energy Blog / Energy Exchange / Energy Market / Energy Trading / EPEX / European grid

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.

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