Knowledge

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 More… (Published: 2. July 2019 by Marie Volkert)
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Power trading

What is Power trading? Definition Power trading refers to purchasing and selling power between participants in the energy industry . Various forms of power trading are possible depending on the market design, ranging from short-term trading to long-term power purchase agreements. History of power trading One of the earliest forms of an energy market emerged More… (Published: 30. April 2019 by Marie Volkert)
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PPA

What is a PPA? Definition A Power Purchase Agreement (PPA) often refers to a long-term electricity supply agreement between two parties, usually between a power producer and a customer (an electricity consumer or trader). The PPA defines the conditions of the agreement, such as the amount of electricity to be supplied, negotiated prices, accounting, and More… (Published: 1. April 2019 by Nils Quak)
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Merit order

What does merit order mean? In the energy industry, the term ‘merit order’ describes the sequence in which power plants are designated to deliver power, with the aim of economically optimizing the electricity supply. The merit order is based on the lowest marginal costs. These are incurred by a power plant and refer to the More… (Published: 14. February 2019 by Nils Quak)
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Load management

What is load management? Electricity consumption is often referred to as ‘load’ in the energy industry. Load management is the active control of electricity consumption. It is also known as ‘demand side management’ or ‘DSM.’ Often, it refers to controlling electricity consumption based on financial signals from the electricity market. Load management is an important More… (Published: 14. February 2019 by Nils Quak)
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Intraday trading

What does intraday trading mean? Intraday power trading refers to continuous buying and selling of power at a power exchange that takes place on the same day as the power delivery. In Europe, the largest intraday power exchanges are the EPEX Spot (European Power Exchange Spot Market) in Paris and the Nord Pool. It can also take place in an More… (Published: 14. February 2019 by Nils Quak)
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Dispatch & Redispatch?

What are Dispatch & Redispatch? The term ‘dispatch’ refers to resource planning at a power plant by the plant’s operator. ’Redispatch’ refers to a short-term change in how a power plant is utilized. This request comes at the behest of a transmission system operator to prevent bottlenecks in the grid. Dispatch Dispatch exists to achieve the most economically-lucrative More… (Published: 13. February 2019 by Nils Quak)
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Utility frequency

What does utility frequency mean? It is well-know that household alternating current (AC) in Germany and Europe has a frequency of 50 Hertz (Hz), while other parts of the world run on 60 Hz. What is less known is that this utility frequency (also known as mains frequency or grid frequency) also provides information about the ratio of electricity generation to More… (Published: 13. February 2019 by Nils Quak)
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OTC trading

What is OTC trading? If a buyer and a seller execute a sales contract for a physical item, the seller hands the product over the counter to the buyer. This is the essence of "over the counter" or OTC trading. In power trading, no physical goods are exchanged, but the principle of a direct, over-the-counter trade for More… (Published: 13. February 2019 by Nils Quak)
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Grid code

What is the grid code? The grid code, also known as the transmission code in some countries, is the set of rules a transmission system operator (TSO) uses to define conditions for accessing the electricity grid. Role of the grid code The grid code regulates the general conditions pertaining to how installations connect to the high and extra-high voltage More… (Published: 13. February 2019 by Nils Quak)
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