Economic Optimal Implementation of Virtual Power Plants in the German Power Market

Dodiek Ika Candra, Kilian Hartmann and Michael Nelles
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Dodiek Ika Candra: Department of Waste & Resource Management, Faculty of Agricultural and Environmental Science, University of Rostock, 18059 Rostock, Germany
Kilian Hartmann: Department of Engineering Science, Faculty of Engineering, Aschaffenburg University of Applied Sciences, 63743 Aschaffenburg, Germany
Michael Nelles: Department of Waste & Resource Management, Faculty of Agricultural and Environmental Science, University of Rostock, 18059 Rostock, Germany

Energies, 2018, vol. 11, issue 9, 1-24

Abstract: The burden of excess energy from the high renewable energy sources (RES) share creates a significant reduction of residual load for the future, resulting in reduced market prices. The higher the share of stochastic RES, the more often the price will be 0 €/MWh. The power market needs new methods to solve these problems. The development of virtual power plants (VPPs) is aimed at solving techno-economic problems with an increasing share of RES in the power market. This study analyses a possible implementation of stochastic and deterministic RES in a VPP to generate secured power, which can be implemented in the European Power Exchange (EPEX)/European Energy Exchange (EEX) power market using existing market products. In this study, the optimal economic VPP configuration for an RES-based power plant is investigated and implemented into standard power market products. The results show that the optimal economic VPP configuration for different market products varies, depending on the energy availability and the marginal costs of the VPP components. The size of the VPP components is positively correlated to the components’ share of the energy generated. It was also found that projecting or implementing VPPs in Germany at current market prices (EPEX/EEX prices) is not yet economically feasible for a small share of market products. However, the secured power can be marketed on the SPOT and in the futures market with higher and more stable prices compared with the status quo.

Keywords: VPP; marketing; configuration; energy transition; power market; EPEX; EEX; power market products (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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