Grundgrün sells its direct marketing portfolio of 2360 MW to the energy company EnBW leading to further market concentration in this sector.
According to Grundgrün the company parts from its direct marketing business due to deteriorating market conditions and intensive competition in the sector. The acquisition by EnBW is to be executed in early summer, provided the Federal Cartel Office approves of the deal.
Through the acquisition of Grundgrün’s portfolio, EnBW would be the third-largest direct marketer in Germany. Along with the doubling of its previous portfolio to 2011 MW in the year 2015, ENBW would then hold a direct marketing portfolio of 4371 MW. Montel concluded that the current market leaders are Statkraft (8600 MW), Danske Commodities (4550 MW) and Mannheimer MVV (4100 MW).
The direct marketing model for renewable electricity allows the direct marketer to directly sell the renewable electricity at the electricity exchange. Instead of selling this electricity to the transmission operator and receiving the feed-in tariff as laid down in the German Renewable Energy Act, the direct marketing premium compensates the difference between the price received at the exchange and the actual feed-in tariff. Currently, renewable energy generators with more than 100 kW are obliged to partake in the direct marketing model. This corresponds to a renewable energy capacity of 53 GW.
