Hybrid Greentech - Energy Storage Intelligence

The Danish electric boilers in the district heating sector are about to gain access to a new revenue stream. This is likely appreciated, especially after they lost a significant income last year when the German counter-trade was moved from the regulating power market to the intraday market.   The Nordic aFRR capacity market has had continuously high prices, but there is still almost no delivery from electric boilers or anyone else in DK2, SE4, and SE3. The supply is almost entirely provided by hydroelectric power from the north of Norway and Sweden.   The reason is that activation is too expensive for flexible consumption. Currently, all aFRR resources are activated in parallel, proportional to their capacity. Assets delivering downward regulation pay the lower of the spot price and the imbalance price, plus tariffs for their activation.   This will change in October when the Nordic TSOs introduce the aFRR Energy Activation Market (EAM). With this new system, assets can set their own activation prices to ensure they are only activated when it is profitable. The TSOs will then activate the cheapest assets first according to the merit order.   Since aFRR activation will become a profitable operation for the assets, the capacity market will become much more attractive for the electric boilers. This will naturally result in a drop in capacity prices, especially for the down regulation market. There are more than 500 MW of electric boilers in DK2!   The aFRR capacity for DK2 is purchased on a Nordic capacity market with a total capacity of only 200-400 MW, while the capacity for DK1 will continue to be purchased on a local DK1 market with a total capacity of 100 MW.   The DK1 aFRR market will be harmonized with the Nordic rules on four important aspects starting in October: - Capacity will be procured through daily auctions (instead of weekly). - There will be separate up and down products (it is currently symmetrical). - The EAM will be introduced. - The speed requirements will be significantly tightened, reducing the full activation time (FAT) from 15 minutes to 5 minutes.   Today, aFRR in DK1 is mostly delivered by a single market actor without competition, meaning that in most weeks, the price is set at the regulated cost plus. The reduction of the FAT to 5 minutes will significantly decrease the supply from existing suppliers, which is expected to result in very high capacity prices in DK1.   On the other hand, the introduction of daily auctions, market asymmetry, and EAM is expected to cause a significant increase in the supply of aFRR Down capacity from the electric boilers in DK1. There is more than 1 GW of boiler capacity in DK1!   All in all, these market changes are expected to saturate the capacity market for down regulation, while the up regulation capacity market will likely remain high and even increase in DK1. Post by Andreas Barnekov Thingvad

Zeenat Hameed and Andreas Barnekov Thingvad attended the International Conference on Renewable Energies and Smart Technologies in Pristina, Kosovo to present our paper (that actually won the best paper award):   “Optimal Scheduling of Limited Energy Reservoir (LER) Technologies in Nordic Ancillary Services and Energy Markets”   The new LER regulation for FCR services can be difficult to understand and to implement, especially in a multi market context. We developed a mathematical formulation that makes it possible to include the requirements in an objective function. That way it is possible to determine an optimal schedule for both multi market participation in FFR and FCR markets as well as day ahead spot markets.   Making optimal decisions of course also depends on the accuracy of the input forecasted prices, which are outside the scope of the paper. The work in this paper was supported by the research and demonstration projects ViPES2X (EUDP - Det Energiteknologiske Udviklings- og Demonstrationsprogram) and ALIGHT (Horizon2020) Big thanks to the co-authors Haris Ziras (DTU - Technical University of Denmark) and Alaa Farhat Noureddine (Hybrid Greentech - Energy Storage Intelligence)

Attention Decision Scientists, ML Developers, and OR Developers! We Are Hiring! Are you passionate about driving the green transition? We are expanding our team and looking for talented individuals who share our vision. If you believe you’re the right fit, apply through the provided channels. We are conducting interviews on a rolling basis and eager to meet the perfect candidates as soon as possible. Apply here: https://lnkd.in/eRne7aMC

On Thursday another huge market change is happening when the new pan-European intraday auctions are going live. In the day-ahead market (DAM) at 12:00 D-1 market participants can sell or buy energy for the coming 24-hour period in a closed auction with a marginal price setting. Orders are matched to maximize social welfare while taking network constraints provided by transmission system operators (TSOs) into consideration. As renewable generation such as wind and solar increases, market participants are moving towards trading in the intraday continuous (IDC) markets, because it has become more challenging to be in balance after the closing of the DAM with uncertainty of trading 24-36 hours in advance. Following EU Agency for the Cooperation of Energy Regulators (ACER) decision, three separate Intraday Auctions (IDAs) are now being introduced as part of the Single Intraday Coupling (SIDC) to complement the continuous trading in the intraday market across Europe and will be in place from Thursday 13th June 2024. Like the IDC the IDAs will use the shared order book of the XBID (Cross Border Intraday) project to match orders from all trading platforms in all of Europe. Intraday auctions will provide the ability to accumulate offers and efficiently allocate the scarce transmission capacity. This will be a novelty in the intraday timeframe, since capacity in the continuous intraday trading is currently being allocated on a first-come first served basis. By providing a liquidity pool that can apply the marginal price mechanism on the merit order instead of pay-as-bid IDAs should create an overall more optimal price formation. In the case that there is congestion between bidding zones, the DAM will result in different marginal prices in each zone and a “bottleneck” income to the TSO who as the owner of the interconnector earns the price difference multiplied with the energy flow. Grid congestion in the DAM generate a significant income to the TSOs that help finance new interconnectors while the TSOs don’t get anything from congestion in the IDC. It is another benefit for the society that the IDAs also will generate bottleneck incomes to the TSOs. Some might argue that the bottleneck income is the main reason for introducing IDAs but it is important to note that regulators legally must consider the value add for the society and not just the potential value for the TSOs when applying the regulation enforcing IDAs. On top of the other coming market changes shown below, IDAs introduces 3 more important gate closures to the daily operation of Hybrid Greentech - Energy Storage Intelligence Virtual Power Plant.

Today tripping of a nuclear power plant in the GW scale happened for the third time (and third power plant) in 4 four weeks.   This morning on the 10th of June at 10:20:35, Forsmark Block 3 had a failure due to a reactor trip of 1172 MW, which made the Nordic system frequency drop to 49.61 Hz. The exact reason is still unknown and the unit is still unavailable.   -On the 3rd of June 2024 was Olkiluoto 3 (OL3) with 1600 MW, suddenly tripped, due to a turbine malfunction. The Nordic system frequency dropped to 49.58 Hz. - On the 13th of May 2024 the Swedish Nuclear power plant Forsmark Block 1 with a capacity of 1 GW tripped due to a grid failure. - On the 25th of November 2023 the Swedish Forsmark reactor experienced a fault, tripping block 3, with a capacity of 1.2 GW. Resulting in a similar frequency drop reaching 49.6 Hz. - Earlier in 2023, on April 26th, it was the two blocks (1 and 2) of the Forsmark plant that were tripped, resulting in a total production loss of 1.0 GW and 1.1 GW, respectively. Hybrid Greentech - Energy Storage Intelligence was supporting the Nordic power system during this fault with our portfolio of grid connected battery systems and electric vehicles.

The Finnish nuclear power plant, Olkiluoto 3 (OL3), was on the 3rd of June 2024 at 10:41:44 CEST suddenly tripped with system wide consequences, due to a turbine malfunction. The Nordic system frequency dropped to 49.58 Hz.   OL3 is an EPR (European Pressurized Water Reactor) plant unit with a net electrical output of approximately 1,600 MW. It is the largest nuclear reactor in Europe and covers 14% of Finland's electricity demand.   It has only been two weeks since last critical nuclear fault in the Nordic grid. - On the 13th of May 2024 the Swedish Nuclear power plant Forsmark Block 1 with a capacity of 1 GW tripped due to a grid failure. - On the 25th of November 2023 the Swedish Forsmark reactor experienced a fault, tripping block 3, with a capacity of 1.2 GW. Resulting in a similar frequency drop reaching 49.6 Hz. - Earlier in 2023, on April 26th, it was the two blocks (1 and 2) of the Forsmark plant that were tripped, resulting in a total production loss of 1.0 GW and 1.1 GW, respectively. When adding the disturbances from HVDCs it is close to be every second month that we experience GW-scale faults in the Nordic grid. Hybrid Greentech - Energy Storage Intelligence was supporting the Nordic power system during this fault with our portfolio of grid connected battery systems and electric vehicles.

Hybrid Greentech wins the Green Power Prize 2024 by Green Power Denmark. The Green Power Prize is awarded annually on behalf of the Danish energy industry by Green Power Denmark for the extraordinary effort that pushes #Denmark and #Europe in a green and electrified direction. “They are helping to solve a huge challenge in the green transition: ensuring that there is always power in the socket – even when the sun has set, and the wind isn’t blowing. Their technology significantly strengthens electrification, and that’s why they deservedly win this year’s Green Power Prize,” says Kristian Jensen, CEO of Green Power Denmark, and continues: “It is precisely innovative and forward-thinking efforts like these that we want to celebrate with the Green Power Prize. The technology that Hybrid Greentech - Energy Storage Intelligence has developed shows how artificial intelligence and the green transition can go hand in hand. A technology that has required enormous courage and perseverance from founder Rasmus Rode Mosbæk and the rest of the team,” says Kristian Jensen. "Hybrid Greentech is very honored to receive this great award from the Danish energy industry. As mentioned in the nomination video, this award should not go to us, but to our customers who have trusted us and been on the journey together with us. We have a strategy that we must make our customers look good. The green transition can only become a reality if there are customers who make their flexible consumption available. Flexible consumption must be a good and profitable experience. Many electric car owners do not know it, but a large part of the charging stations are ready on a daily basis to balance the electricity grid and thereby ensure the green transition – it is a success. " says CEO and Founder of Hybrid Greentech, Rasmus Rode Mosbæk and continues: "For us, flexibility is not a question of getting end users to shift power consumption of a dishwasher from day to night, but a question of digitization and algorithms and ensuring profitability and longevity of the assets we operate. No matter if it is electric vehicles, heat pumps, boilers, batteries or Power to X systems. Our hope is that with this award we can make more companies aware of the fact that flexible electricity consumption is not a thing in the future or unprofitable, but that the future is now and they can start tomorrow." Big thanks to the jury for selecting us: Jesper Hjulmand, Rasmus Horn Langhoff, Katherine Richardson, Mette Louise Kaagaard, Christine Ravn Lund, Kristian Jensen, Lea Bigom Wichmand. Read Hybrid Greentech's Press release here: https://lnkd.in/dZQ_CVPw

The spot prices have been low in the last couple of nights but significantly lower at lunch for the past week.   That usually has a boosting effect on the FCR-D down prices because the electric boilers usually are operated at full power when the spot prices are low and therefore cannot offer their capacity to the FCR-D down market. The spot price effect seems to be reduced after consecutive days with low spot prices combined with the warm weather. It could result in full accumulation tanks, so the boilers are not producing heat despite the low electricity cost.   The generation from PV does however seem to increasingly inversely correlated with the FCR prices that have switched from being highest at night to being highest at noon. The FCR prices have increased significantly in the last couple of weeks. The large daily spot price variations could be causing the German BESS capacity to be trading energy instead of delivering FCR.   It is worth noticing that flexible consumption like Electric Vehicles in DK1 suddenly can earn more money by delivering FCR than vehicles in DK2 delivering FCR-D Up, even though FCR is symmetric. That is at least the case during the day-time.   Since most of the Nordic BESS capacity is exclusively delivering FCR-D Up + Down, it means that the FCR-N reserve prices have been slowly increasing for a long time. We are starting to see a lot of hours where FCR-N has significantly higher prices than FCR-D Up + Down. Considering the cost for additional tariffs, conversion losses and cycling of the battery there are still a significant number of hours where FCR-N is the best choice. It is mostly the case for non-LER units (with prequalification’s before September 2023) and fewer hours for LER assets where a 2-hour BESS only can trade 66% of the power capacity for FCR-N.   Hybrid Greentech - Energy Storage Intelligence multi market optimization is becoming increasingly important to secure best in class revenues for the asset owners compared to single market participation.

Our Andreas Barnekov Thingvad joined Mike Hawkes and Kevin Spangenberg on Monta podcast "In-Between Charges" to discuss the evolving landscape of energy markets. They discuss the different challenges the grid experiences during the green transition in terms of congestion, stability, and sufficient power availability - which leads to all the different types of flexibility services that can be provided by flexible consumption such as energy storage or electric vehicles. They also talk about how innovations like Hybrid Greentech - Energy Storage Intelligence virtual power plant and vehicle-to-grid technologies are paving the way for a greener, more efficient future.

Is tripping of a Nuclear power plant an unlikely incident? This morning 13th of May at 07:13:29 the Swedish Nuclear power plant Forsmark Block 1 with a capacity of 1 GW tripped due to a grid failure. The power ramp started from 8:15 and will be up to full power at approximately 22:00 tonight. Block 2 might also have tripped if it wasn't already out for maintenance until the end of the week. On the 25th of November 2023 the Swedish Forsmark reactor experienced a fault, tripping block 3, with a capacity of 1.2 GW. Resulting in a similar frequency drop reaching 49.6 Hz. Earlier in 2023, on April 26th, it was the two blocks (1 and 2) of the Forsmark plant that were tripped, resulting in a total production loss of 1.0 GW and 1.1 GW, respectively. When adding the disturbances from HVDCs it is close to be every second month that we experience GW-scale faults in the Nordic grid. Hybrid Greentech - Energy Storage Intelligence was supporting the Nordic power system during this fault with our portfolio of grid connected battery systems and electric vehicles.