Blog Posts on Knowledge

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 More… (Published: 23. June 2020 by Marie Volkert)
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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 includes Balancing Energy and Balancing Capacity. Balancing Energy means More… (Published: 20. May 2020 by Marie Volkert)
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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, More… (Published: 25. March 2020 by Marie Volkert)
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Artificial Intelligence

What is Artificial Intelligence in the Energy Industry ? Definition In recent years, Artificial Intelligence (AI) has gained relevance in a wide variety of sectors. However, defining the term poses some difficulties. Central to Artificial Intelligence is that it makes and implements decisions based on data (information) independently with regard to the set goals. The More… (Published: 11. December 2019 by Marie Volkert)
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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 (Power Purchase Agreement) ? 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, 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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