Santosh K Gurunath’s Post

"Not efficient": Sweden rejects the German electricity market Sweden has rejected the construction of the Hansa PowerBridge to Germany. The fear: prices could rise in Sweden and the grids could become more unstable. 18.06.2024 The Swedish government has rejected an application for the construction of the Hansa PowerBridge undersea power link between Sweden and Germany. As the news agency Reuters reports, Sweden considers the German electricity market to be too inefficient to connect the electricity grids of the two countries. The Hansa PowerBridge was supposed to have a capacity of around 700 megawatts and improve energy security in Germany and Sweden. The hope is that if too much renewable energy is generated in Germany, it can be directed to Sweden, as the country has greater storage capacities. Conversely, Sweden can provide Germany with climate-friendly electricity from its hydroelectric power plants when there is little renewable energy available in Germany. German electricity grids: Sweden criticizes uniform electricity price zone However, the Swedes are now expressing doubts about the project. "We cannot connect southern Sweden, which has a large deficit in electricity production, with Germany, where the electricity market does not function efficiently today," said Sweden's Energy Minister Ebba Busch in a statement, according to Reuters. "This risks higher prices and a more unstable electricity market in Sweden." The Swedes' main point of criticism is that electricity is traded at a uniform price on the exchange throughout Germany. However, a large proportion of electricity is generated in northern Germany, while the major electricity consumers are mainly located in southern Germany. Because the expansion of the power lines is lagging behind, grid bottlenecks regularly occur, resulting in high costs. As early as 2022, the EU regulatory authority Acer therefore proposed dividing Germany into several zones. So far, however, such demands have been met with rejection in this country. There are great fears that the introduction of different electricity price zones could increase electricity prices in southern Germany and have a negative impact on industry. "The German electricity market does not function in a way that provides correct price signals to market participants, especially because Germany, unlike Sweden, is not divided into electricity zones according to the significant congestion," the Swedish government explained to Reuters. Sweden has a total of four electricity price zones. The grid operator 50Hertz, which is responsible for the expansion of the Hansa PowerBridge in Germany, spoke in a statement of a missed opportunity to strengthen the European internal electricity market. According to the 50Hertz website, the commissioning of the Hansa PowerBridge was originally planned for 2029. https://lnkd.in/gcy-p6Y5

An interesting read in today’s German business daily Handelsblatt about the challenges which come along as a result of the shift in energy mix towards renewables, here focusing on Texas. Solar and wind power are not available 24/7 and the demand is not necessarily located close to supply. Coupled with isolated and partially outdated power grids, power outages become more and more a normal phenomenon, even in economical highly developed countries and areas. At DEUTZ AG, we are committed to contribute towards achieving CO2-neutrality by 2050. Whilst we thrive to achieve this important goal, we continue to work to ensure that the world keeps moving. And that is one of the reasons why we are entering into new markets and new business models. Last month we signed a contract to purchase 100% of the shares in Blue Star Power Systems, Inc., a company producing state-of-the-art power generators. These power generators act as backup in the event of outages as such happening in Texas. Backups for hospitals, data centers, supermarkets, industrial facilities and many other parts of the critical infrastructure. And that is just the beginning. We will further buy and build a strong and global Deutz energy business, which will also allow us to bring CO2-neutral technologies into the market, using our H2 ICE or our engines to be powered with bio or synthetic fuels. #deutz #weensuretheworldkeepsmoving #bluestarpowersystems

INDUSTRY/CONSUMER FLEXIBILITY, THE EIGTH HOLY GRAIL OF ENERGIEWENDE: Large energy intensive industries has historically had benefits on their Grid fees due to their stable outtake. With increasing intermittent generation this has now limited value in the German Power system setup and a new model is worked out. The number of holy grails keep on coming, to solve obstacles in German Energiewende. Intermittency, Gridification, Storage, Industrial Prices and Hydrogen https://lnkd.in/e6MuQ_2r where followed by Kraftwerkstrategie https://lnkd.in/g-JMEJVP and Wermewende https://lnkd.in/dg7JK_c2 . But none of those seven attempts seem to do the trick, so the Brain trust of Energiewende now bring forward an initiative for Industry, to absorb the ever more variable power production. How this will play out is really to be seen, but grid fees for larger consumers will probably go from the level of €5-10/MWh to anything between €30-100/MWh(calculations to follow). But since Power prices in themselves already swing with the magnitude of €100/ MWh within a day, it is hard to see how adding this grid component cost will change any customer’s behavior, except for going abroad.🤔 https://lnkd.in/deEzK96u

13 is a unlucky number!   Well, that also counts for the energy branch in Germany when you look at Articles 13 ff of the Energy Law! More and more Articles were added over time, starting with Redispatch (§ 13a), which costs evolved to huge numbers! It continued with the Clsosing of power plants (13b and 13c) or not closing of other power plants (13d, 13e, 13f), which were followed by quite complicated and not always successful processes. We now reached Article 13k! It is again about System Operators intervening in markets by trying to anticipate congestion and then use the power instead of curtailing wind power! Sounds great if the use of power really is “additionally”. That is exactly, what Bundesnetzagentur (BNA) is evaluating and part of it is, that storage 🔋 shall be also take part in that mechanism of power utilization instead of curtailment. (Despite storage not being a load when charging). And here, the unlucky number 13 kicks in According to the criteria used from BNA now, storage may switch on a monthly basis between this mechanism and and other marketing and is not allowed to take part in the intraday and day-ahead market during those times.   Why? This is not synchron with the short term marketing of BESS and, for providing ancillary services a Battery uses the wholesale market, too. If not changed accordingly, for implementing Article 13k, I assume, the bad luck of number 13k continues for storage!     #NutzenStattAbregeln, #storage Bundesnetzagentur - Nutzen statt Abregeln 2.0 https://lnkd.in/exSUh52i

Unlock the Power of Solar Energy with Electricity Storage Systems 🔋   ENVIRIA's latest blog dives deep into why electricity storage is a game-changer for companies. Discover how you can optimize self-consumption, save costs, and even generate additional revenue. 📈   🌟 Key Benefits: - Self-Consumption Optimization: Enhance energy independence and save costs. - Peak Shaving: Reduce peak load tariffs by storing energy during low demand. - Spot Market Income: Sell stored energy when prices are high. - Marketing of Control Energy: Ensure grid stability and earn additional revenue. - 24/7 Solar Power: Access clean energy anytime, reducing reliance on fossil fuels. 🔗 Read the full article by Head of Power Products Marvin Mertens to learn how electricity storage can transform your business and support a sustainable future: https://lnkd.in/ecSqfwYH #electricitystorage #solarenergy #renewableenergy #stromspeicher #photovoltaik

To read carefully, learn and avoid copying these fatal mistakes.

"More and more companies want to become independent of fluctuating prices" according to ERNEUERBARE ENERGIEN in its January 2024 issue. #TESVOLT was also mentioned several times in the latest issue in an article about the growing market for commercial and large-scale storage systems. Here our Senior Product Manager Christian Löffler shared his view of the situation. Read the article (German language) to find out exactly what he says about the electricity market and how TESVOLT is working specifically for more safety in the sector. 👉 https://brnw.ch/21wGudJ #energytransition #storagetechnology #innovation #sustainability #futureofenergy

THE GERMAN GREEN REALITY Daniel Wetzel ‘s headline is “Now Germany is experiencing the green electricity failure - with enormous consequences” On one hand pretty alarming, on the other just reality catching up. An other quote:“This means that the capacities of 87,000 megawatts of photovoltaics and around 72,000 megawatts of wind power, which were built up in Germany with three-digit billion subsidies, were practically completely broken for hours.” Everyone has been aware of the fact on Dunkelflautes coming and going, so periods of days, or in some cases weeks, where No wind and No sun. For those periods it does not matter how many GW’s of more Solar or Wind that is installed, it has to be covered by Backup or Import. With most European neighbors having high ambitions in Intermittency, available Import capacity in Dunkelflautes will decrease. So either build more Backup, or go dark. There is high hope in Industrial Flexibility, with creative market/grid tweaks, but this will probably only lead to a permanent exit from Germany for those Industries🤔 And with ever increasing hours with overproduction when there actually is wind and solar, giving increasing numbers of negative pricing, any additional MWh of Intermittent generation will need it’s own government subsidy to get built. I guess we all se where this is going 🫣🤑 There are markets that manage this better https://lnkd.in/e3tvb8kn with common denominators for success, as well as Energiewendes that actually works https://lnkd.in/dv9Gh35y , would anyone in the German Power system Transition AcademiaI/Intelligence Complex be interested when the “Holy grail” strategy https://lnkd.in/dX25HUB9 does not come true 😇 https://lnkd.in/dwAKwZnn

This week held big news from Germany as Chancellor Olaf Scholz, Economics & Renewables Minister Robert Habeck, and Finance Minister Christian Lindner unveiled the long awaited "Kraftwerksstrategie". Highlights include: 1. Capacity market introduction by 2028 A significant energy market design shift and move away from the traditional energy-only market model, offering strong upside potential to energy storage. 2. Scaled-down gas peakers Reduction from 25 GW to 10 GW of hydrogen-ready gas plants by 2040, reflecting a balanced approach to immediate energy needs and long-term sustainability. 3. Regulatory relief Initiatives to remove double charging on electricity for storage and electrolysis, enhancing the economic case and investor security.

Australians should read this post Q: What happens when economists and environmentalists and politicians get together to solve big technical problems and either forget the engineers, buy them off, or lock them out of the room? #Germany #Energiewende #renewable #energy #superpowr #electrification #hydrogen #Australia