The marketing activities of electricity suppliers often appear somewhat desperate. Boring, interchangeable messages and temptations with uninspiring switching bonuses such as iPads, fitness trackers and co. rarely persuade customers to change their electricity contracts. Change of provider, cost comparison, security of supply are confusing keywords. Technically, everything is fine in the “engine room of life”, isn’t it? Tobias Kurth, managing director at Energy Brainpool and Eike Dehning, holder of dhng Consulting discuss what this means. Both have been observing the developments of the energy market for a long time.
The outcome of the first tender for wind-onshore has been highly anticipated. The price expectations fluctuated significantly until the end. The approved capacity to this point – approximately 1000 MW at an advertised capacity of 800 MW – indicated a rather moderate competitive pressure.
Transmission system operator Tennet and storage supplier Sonnen aim to interconnect photovoltaic home storage systems and to apply them in a way that assists the power grid. In the pilot phase, flexibility consisting of 24 MW storage capacity will be used as battery-related redispatch in order to reduce the feed-in management (curtailment) of wind energy.
A fundamental study by the think tank Agora Energiewende has examined the tax and levy system in the German energy market. The result: Imbalance of the energy price benefits climate-damaging energy carriers.
The price for base load delivery of power was -24.27 EUR/MWh on Monday, 1st of May, its lowest value for 52 months. The reason for this price is low demand combined with high wind feed-in. On both Sunday and Monday, the price for peak load was below the price for base load.
According to the Federal Network Agency (BNetzA) 20 GW of the German conventional power plant capacity also feeds electricity into the grid during times of negative electricity prices, due to technical restrictions. Lignite-fired and nuclear power plants constitute the bulk of this inflexible base (70 percent), which ended up losing money during negative prices and where not necessary for guaranteeing grid stability.
Eurelectric, the European association of the electricity sector, has decided by a large majority that its members will not build new coal-fired power plants from 2020 onwards. However climate protection goals can only be achieved by decommissioning coal-fired power plants.
The first tender for offshore wind power in Germany ended with a surprising result. The weighted average mean of the price in the auction was 0.44 cent, the lowest bids with 0 cent/kWh and the highest with 6 cent/kWh.