Neas Energy A/S. Electrolysis for grid balancing - BioCat European Power-to-Gas Platform: Second meeting Square Hotel, Copenhagen, 22 June 2016

Transcription

1 Neas Energy A/S Electrolysis for grid balancing - BioCat European Power-to-Gas Platform: Second meeting Square Hotel, Copenhagen, 22 June 2016

2 Agenda Neas Energy Electricity markets Trading strategy and grid balancing

3 Neas Energy in brief Neas Energy is an independent energy asset management company that provides physical and financial management of energy for customers with assets operating on liberal energy markets in Europe. Neas Energys customers includes: Power Plants & CHP Plants Renewables (Wind, PV and Hydro) Utilities & Supply companies Neas Energy was established in 1998 in Aalborg, Denmark by four local public supply companies to purchase electricity in the newly liberalised energy market. In 2011 legislative restrictions lead to a sale of Neas Energy to a group of private equity investors including the company management and in 2015 Denmark s largest pension fund ATP and private equity firm Via Venture Partners was included into the group of shareholders. In April 2016 Centrica acquired Neas Energy with the intend to use the company as the spearhead for the growth of energy marketing and trading activities on the European continent. The acquisition is currently awaiting approval from the European Union. Neas Energy s headquarters are located in Aalborg, Denmark and it has offices in London, Hamburg, Düsseldorf and Stockholm and trading activities on 18 European energy markets. Neas Energy has been a member of the UN Global Compact since 2009.

4 Portfolio 2,100 MW installed capacity Combined Heat and Power 6,546 MW installed capacity Renewables 1.1 TWh Supply & large scale consumption

5 Businesses Customer-driven business Trading 1. Power Plants 2. Renewables 3. Consumption 4. Power Trading 5. Gas Trading Optimisation of power (and heat) plan assets. Optimisation of wind, solar and hydro assets. Risk management and optimisation of consumption and supply. Knowledge-based proprietary Power Trading based on market insights and thorough analysis. Knowledge-based proprietary Gas Trading based on market insights and thorough analysis.

6 Core Business Neas Energy s business model is centered around optimising our clients assets in energy markets

7 Production Management Software Managing your production in Neas Energy s software allows you to access advanced tools and data to plan and operate your generation on optimal conditions for maximum value with a minimum of risk and uncertainty. The software gives you access to Neas Energy s 24/7 operation and trading services: Forecasting - Power prices - Gas prices - Weather forecasts Operation - Scheduling - Planning - Remote control - Reporting Optimisation - Production plans - Day-ahead - Intraday - Ancillary services

8 Electricity markets Eastern Denmark (DK2)

9 Spot market Spot market (Nord Pool exchange) - Day-ahead market - Marginal price system (hourly) - Intersection point between all sales and purchase bids - Perfect balance between production and consumption Imbalances occurs in the day of operation - Weather conditions deviates from forecasts - Unexpected outages at power plants - Unexpected outages at interconnectors - Unexpected changes in consumption - Scheduling errors Source: Nord Pool

10 Physical balance intraday Elbas (Nord Pool exchange) - Intraday market - Electricity can be traded up until one hour before hour of operation - Pay-as-bid market - Possibility for the BRP to trade into balance - Another possibility for producers and consumers to achieve requested price FNR and FDR (Energinet.dk) - Automatic Frequency Containment Reserves (seconds) - FNR is a symmetric service - FDR is an asymmetric service (up regulation) - Availability payment Regulating power market (Energinet.dk) - Manual Frequency Restoration Reserve (minutes) - Up regulation (lack of power) - Down regulation (surplus of power) - Marginal price system (hourly)

11 Electricity markets submission deadlines

12 Trading strategy and grid balancing

13 Marginal cost for P2G facility

14 Spot optimised operation plan strategy 1

15 Regulating power market bids strategy 1

16 Spot optimised operation plan strategy 2

17 FNR and intraday bids strategy 2

18 Sum up framework conditions Current framework challenges a profitable operation of the P2G facility - The subsidy scheme for upgraded biogas is implemented to incentivise production of biogas from organic material that otherwise will not be utilised for energy production - The methane produced from P2G facility does fall within this subsidy scheme because the energy content in the methane comes from electricity - The government has announced that PSO costs will be transferred to the national budget - Minimum bid size for the regulating power market is 10 MW - The P2G facility has to be pooled with other units in NEAS portfolio to access the regulating power market

19 Thank you for your attention