Utilities

Municipal utilities as smart energy suppliers and drivers of the municipal energy transition

Municipal utilities must overcome major challenges posed by the energy transition, such as integrating renewable energy, offering dynamic rates, and ensuring a stable energy supply. Our modular services help utilities profitably market electricity flexibility and support grid stability—without requiring the physical activation of the facilities.

Municipal energy industry in the transformation process

The energy sector is in the midst of a transformation. As part of the energy transition and with the growth of decentralized energy sources, municipal utilities and regional providers in particular must ensure security of supply and grid stability—electricity, gas, and heat must be available at all times and must also be sustainable. At the same time, municipal utilities serve as role models for their communities. They help ensure the success of the energy transition and thereby contribute to achieving CO₂ reduction targets.

Municipal utilities on the intraday market: seizing opportunities, achieving targets

The Intraday trading Participation in the electricity market offers municipal utilities enormous potential for achieving key goals such as the energy transition, CO₂ reduction, and security of supply. Flexible market behavior enables the optimization of energy supply with renewable electricity, since the intraday price reflects its availability (e.g., when there is strong wind or abundant sunshine, prices drop).

To use conventional power plants efficiently while also facilitating the integration of renewable energy, municipal utilities should make targeted use of available electricity flexibility options.

Our Flexibility Trading responds to volatility Volatility refers to price fluctuations in the intraday market on the intraday market to profitably sell available power flexibility. If needed, this flexibility can be managed fully automatically using our Remote Work can be accessed and tracked—and integrates seamlessly into your existing infrastructure.

On average, 30% of the trading activities realized in our portfolio result in a <strong>actual physical fulfillment</strong> and thus to a change in the originally planned system deployment. This value can be flexibly adjusted upwards or downwards as part of your individual marketing strategy. The result is real added value for municipal utilities and their local authorities: energy costs are optimized, grid stability is supported and CO₂ reduction is promoted.

Here is an example of our successful flexibility marketing

Learn more now from our experts in digital energy services!

Orange: Sell, Green: Buy, White: Intraday Trades, Trading Start: 4:00 p.m. the previous day, Trading End: up to 5 minutes before delivery

Case Study: Municipal Utility—Successfully Marketing Flexibility on the Intraday Market

A municipal utility customer reported to us 5 MW of positive flexibility from its gas turbine for an average day during the period from 5:00 to 5:15 (Day D). Our marketing algorithms, specifically programmed for this plant, began trading this flexibility on the electricity exchange’s intraday market as early as 4:00 p.m. the previous day (Day D-1), within the plant-specific restrictions. During this period, over 28 trades were executed for a single product up until gate closure, with positions being opened and then closed at a profit— everything fully automatic. For this trading transaction, our municipal utility did not need to activate the flexibility of its gas turbine. In our portfolio, actual physical settlement occurs in only 30 % of cases, on average. Thus, our customer generated a purely financial profit of approximately 220 euros with the help of its flexibility—for this single (!) quarter of an hour and without physical activation of the system.

Example: Marketing E-Boilers for Municipal Utilities: Electric Heat for District and Local Heating Networks.

In municipal utilities, the e-boiler plays a similar role to that in industry, but is typically integrated into a district or local heating network. In the summer, it takes advantage of low or even negative electricity prices—resulting from high PV feed-in—to provide climate-friendly and cost-effective heat. During the cold season, boilers or gas-fired power plants ensure reliable heat generation. This combination enables a flexible and efficient heat supply: municipal utilities can convert renewable electricity into heat, thereby optimally combining decarbonization with security of supply.

What about heating obligations and individual restrictions?

We promote flexibility tailored to each of our customers. This means that each of our customers’ facilities receives a custom-programmed algorithm based on their specifications and experience with that type of facility, while also taking any restrictions into account. Among other things, heat supply obligations are automatically factored into the marketing strategy. As a result, we have a proven track record of successfully marketing flexibility from over 20 plant types, such as various heat-generating plants, combined heat and power (CHP) plants, gas turbines, gas engines, steam turbines, and many more.

Intraday and/or balancing energy marketing?

Our experience shows that selling on the intraday market generates the most flexibility potential per year higher yields than balancing energy. As renewable energy continues to expand, market volatility continues to rise—and with it, the potential for returns. Furthermore, no prequalification is required for the intraday market, which makes access significantly easier. Nevertheless, intraday marketing is not a criterion that precludes the marketing of balancing energy; the two can coexist and be marketed alternately or in combination. In doing so, the prohibition on double marketing is strictly observed. With our Cross-market approach We combine the advantages of both markets (intraday and balancing energy). The result: On average, 30 % higher returns compared to selling in a single market—and thus real added value for your flexibility.

+49 201 22038 100 | info@esforin.com

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+33 6 84 01 15 82 | denis.grynbaum@esforin.com

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