Dr. Ulrich Focken European 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 EEG Plant (e.g. Wind Park) Sales Company Final 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  TSO in the north with high wind energy penetration

Vattenfall Europe e.on RWE EnBW 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 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 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 EEG Plant (e.g. Wind Park) Sales Company Final Customer EEG-Quota TSO Renewable energy act (EEG) - delivery of renewable energy to customers

Market integration ÜNB Verteilnetz- betreiber EEG-Quote ÜNB EEG Plant (e.g. Wind Park) Sales Company OTC / EEX OTC / EEX Final 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

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 Uncertainty Wind 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 aus RegelzoneD an RegelzoneD von BilanzkreisWind nach Bilanzkreis Typ WPWP_MINWP_MAX Kommentarbereich DeutschlandMin-KonfidenzMax-Konfidenz Erstellungsdatum Erstellungsuhrzeit 07:35 Prognosezeitpunkt Kontrollsumme [MWh]: vonbisMW 00:0000: :1500: :3000: :4501: :0001: :1501: :3001: :4502: :0002: :1502: :3002: Muster Datum aus RegelzoneD an RegelzoneD von BilanzkreisWind nach Bilanzkreis Typ WPWP_MINWP_MAX Kommentarbereich DeutschlandMin-KonfidenzMax-Konfidenz Erstellungsdatum Erstellungsuhrzeit 07:35 Prognosezeitpunkt Kontrollsumme [MWh]: vonbisMW 00:0000: :1500: :3000: :4501: :0001: :1501: :3001: :4502: :0002: :1502: :3002: Muster Datum aus RegelzoneD an RegelzoneD von BilanzkreisWind nach Bilanzkreis Typ WPWP_MINWP_MAX Kommentarbereich DeutschlandMin-KonfidenzMax-Konfidenz Erstellungsdatum Erstellungsuhrzeit 07:35 Prognosezeitpunkt Kontrollsumme [MWh]: vonbisMW 00:0000: :1500: :3000: :4501: :0001: :1501: :3001: :4502: :0002: :1502: :3002:

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 !

>>> Kontakt Dr. Ulrich Focken energy & meteo systems GmbH Marie-Curie Straße Oldenburg