Development of Marketing Strategies for the Balancing Energy Market (coal and combined gas/steam turbine)

Project Run-Time

2009

Topics

Market analysis, modelling, strategy, business concept, generation

Client

German energy supply company (municipal utility)

Objective

To develop marketing strategies in the balancing energy market for a coal power plant and a combined gas/steam turbine power plant

Our Tasks

• Analysis of the balancing energy market in Germany. Main individual topics:
  • Analysis of demand for balancing energy
  • Analysis of the framework conditions and rules governing the participation in the balancing energy market (pre-qualification requirements, technical restrictions, contractual penalties, etc)
  • Description of primary and secondary control reserve as well as minute reserve (product and tender characteristics, competitive situation)
  • Market participants and their behaviour in the market
  • Market volumes (power and energy prices)
  • Prices and price developments of individual products (power and energy price for all products)
  • Analysis of the influencing factors on price developments
  • Analysis of the frequency of activation of control reserve and its remuneration
  • Depiction of basic bidding strategies (illustration of factors which should be considered)
  • Derivation of possible future developments within the balancing energy market and their impacts on competition and price developments
• Development of marketing strategies for different types of power plants (coal, combined gas/steam turbine) based on the results of the market analysis. Main topics, amongst others, are:
  • Assessment of potentials by means of a simulated operation in relation to different bidding strategies
  • The power plant operation in the spot market is used as benchmark
  • Derivation of promising marketing strategies for the different segments within the balancing energy market

Result

Derivation of marketing strategies for a coal and combined gas/steam turbine power plant