Dr. Ulrich Focken European Wind Energy Conference Milan,09. May 2007

Dr. Ulrich FockenEuropean Wind Energy Conference Milan,09. May 2007

>>>Integrating Wind into Electricity Market in Germany

Overview

• Status Quo: Renewable energy act

• Concept of renewable trading platform

Status quo: renewable energy act

Fixed tarif: §5 (1) Netzbetreiber sind verpflichtet, Strom, der in Anlagen gewonnen wird, die ausschließlich

Erneuerbare Energien einsetzen nach §6 bis 12 zu vergüten.

Preference integration : §4 (1) Netzbetreiber sind verpflichtet, Anlagen zur Erzeugung von Strom aus Erneuerbaren

Energien vorrangig an ihr Netz anzuschließen und den gesamten aus diesen Anlagen angebotenen Strom aus Erneuerbaren Energien vorrangig abzunehmen.

– realisation: physical balancing by TSO

Renewable energy act (EEG) - delivery of renewable energy to customers

TSO

Distribution Network

Distribution Network

EEG Plant (e.g. Wind

Park)

EEG Plant (e.g. Wind

Park)

Sales CompanySales Company

Final CustomerFinal Customer

EEG-Quota

TSO

EEG-energy is passed on from the producers to the final customers. Payment (feed in tariffs) are passed on as well.

Installed wind power & energy consumption

Vattenfall Europe

e.on

RWE

EnBW

0

10

20

30

40

50

e.on Vattenfall RWE EnBW

rel.

pro

po

rtio

n [

%]

installed wind power electricity consumption

TSO in the north with high wind energy penetration

Vattenfall Europe

e.on

RWE

EnBW

0

10

20

30

40

50

e.on Vattenfall RWE EnBW

rel.

pro

po

rtio

n [

%]

installed wind power electricity consumption

Installed wind power & energy consumption

TSO in the north with high wind energy penetration

Physical distribition of wind power between TSO`s

Vattenfall Europe

e.on

RWE

EnBW

0

10

20

30

40

50

e.on Vattenfall RWE EnBW

rel.

pro

po

rtio

n [

%]

installed wind power electricity consumption

• Energy is passed from E.on and Vattenfall grids towards EnBW and RWE-grids

• Quarter-hourly exchange based on upscaled productions of representative wind-farms

• Smoothing effect of wind power forecast error and load forecast error

Vattenfall Europe

e.on

RWE

EnBW

0

10

20

30

40

50

e.on Vattenfall RWE EnBW

rel.

pro

po

rtio

n [

%]

wind power in grid electricity consumption

Physical distribition of wind power between TSO`s

Future : integration in the market has to be done

Fixed tarif system is the best for the beginning of integraton of wind power, ...

but with increasing share of wind power it has to be integrated in the power market.

What has to be considered:• Political framework• Development of methods and software for pratical realisation

Political Framework: Status Quo

Fixed tarif: §5 (1) Netzbetreiber sind verpflichtet, Strom, der in Anlagen gewonnen wird, die ausschließlich Erneuerbare Energien einsetzen nach §6 bis 12 zu vergüten.

Preference integration: §4 (1) Netzbetreiber sind verpflichtet, Anlagen zur Erzeugung von Strom aus Erneuerbaren Energien vorrangig an ihr Netz anzuschließen und den gesamten aus diesen Anlagen angebotenen Strom aus Erneuerbaren Energien vorrangig abzunehmen.

„Grid operator are obliged to take, but the wind park owner is not obliged to give“

TSO

Distribution Network

Distribution Network

EEG Plant (e.g. Wind

Park)

EEG Plant (e.g. Wind

Park)

Sales CompanySales Company

Final CustomerFinal Customer

EEG-Quota

TSO

Renewable energy act (EEG) - delivery of renewable energy to customers

Market integration

ÜNB

Verteilnetz-betreiber

Verteilnetz-betreiber

EEG-Quote

ÜNB

EEG Plant (e.g. Wind

Park)

EEG Plant (e.g. Wind

Park)

Sales CompanySales CompanyOTC /

EEX

OTC /

EEX

Final CustomerFinal Customer

What is special to trade wind power ?

Power trading is for over 10 year daily business, but ...

Convertional power plants: The power plant is scheduled to sold energy.

Renewables: Trading the power which is predicted.

Concept of renewable virtuel trading platform

Wind Power Prediction - Previento

Previento

Physikalisches Modell:

• Räumliche Verfeinerung

• Thermische Schichtung

• Regionales Upscaling

• Angabe Unsicherheit

Supply information

Include availabity

Pooling

Price information

Trading platforms: Power exange

(EEX) OTC

Forecast of

price

Concept of renewable virtuel trading platform

Risk assessment

Price risk

known problem in the energy market

Volume risk

deviation of schedule due to prediction error

How to deal with forecast errors:

balancing power

physical adjustment with conventional power plants

demand site management

Smoothing helps a lot

– Error decrease with

increase of regionsize

– Regional smoothing

depend only on regions

size, not on number of sites

– Error is reduced in

germany to 42 % compared

to single forecast

Which hours are above a certain treshhold ?

Cumulate frequency of trading duration

Standard products for the energy market

Base

Peak

Wind Power

• Generate products is a challange

Standard products for the energy market

• Consideration of all uncertainties

Combined UncertaintyWind Power Prediction

Contracts

Which topics a trading tool should cover ?

• Easy to access via internet: multiple user like trader, wind power maintenance, wind power operator

• User dependend settings

• All information together

• Historic data available

Muster Datum 13.10.2005 13.10.2005 13.10.2005aus Regelzone Dan Regelzone Dvon Bilanzkreis Windnach Bilanzkreis

Typ WP WP_MIN WP_MAX

Kommentarbereich Deutschland Min-Konfidenz Max-Konfidenz

Erstellungsdatum 13.10.2005Erstellungsuhrzeit 07:35Prognosezeitpunkt

Kontrollsumme [MWh]: 34772

von bis MW MW MW00:00 00:15 2789 2209 336900:15 00:30 2789 2209 336900:30 00:45 2789 2209 336900:45 01:00 2789 2209 336901:00 01:15 2789 2209 336901:15 01:30 2749 2176 332201:30 01:45 2708 2141 327501:45 02:00 2668 2107 322902:00 02:15 2628 2073 318302:15 02:30 2547 2005 308902:30 02:45 2466 1936 2996

Muster Datum 13.10.2005 13.10.2005 13.10.2005aus Regelzone Dan Regelzone Dvon Bilanzkreis Windnach Bilanzkreis

Typ WP WP_MIN WP_MAX

Kommentarbereich Deutschland Min-Konfidenz Max-Konfidenz

Erstellungsdatum 13.10.2005Erstellungsuhrzeit 07:35Prognosezeitpunkt

Kontrollsumme [MWh]: 34772

von bis MW MW MW00:00 00:15 2789 2209 336900:15 00:30 2789 2209 336900:30 00:45 2789 2209 336900:45 01:00 2789 2209 336901:00 01:15 2789 2209 336901:15 01:30 2749 2176 332201:30 01:45 2708 2141 327501:45 02:00 2668 2107 322902:00 02:15 2628 2073 318302:15 02:30 2547 2005 308902:30 02:45 2466 1936 2996

Muster Datum 13.10.2005 13.10.2005 13.10.2005aus Regelzone Dan Regelzone Dvon Bilanzkreis Windnach Bilanzkreis

Typ WP WP_MIN WP_MAX

Kommentarbereich Deutschland Min-Konfidenz Max-Konfidenz

Erstellungsdatum 13.10.2005Erstellungsuhrzeit 07:35Prognosezeitpunkt

Kontrollsumme [MWh]: 34772

von bis MW MW MW00:00 00:15 2789 2209 336900:15 00:30 2789 2209 336900:30 00:45 2789 2209 336900:45 01:00 2789 2209 336901:00 01:15 2789 2209 336901:15 01:30 2749 2176 332201:30 01:45 2708 2141 327501:45 02:00 2668 2107 322902:00 02:15 2628 2073 318302:15 02:30 2547 2005 308902:30 02:45 2466 1936 2996

Start trading in germany with WPD / EWE

• 1.6 GW inst. Capacity distributed over whole germany

• Predictions are available for each single wind farm• A company to trade wind power will be estabished by EWE and WPD

So - methods and software to trade wind energy are available !

Thanks for your attention !

>>>KontaktDr. Ulrich Fockenenergy & meteo systems GmbHMarie-Curie Straße 126129 Oldenburgulrich.focken@energymeteo.dewww.energymeteo.de