O-I Glass and GridBeyond plan to implement a groundbreaking battery storage solution at O-I’s Alloa, UK facility. The innovative 8MW battery system and supporting energy management system (EMS) leverages artificial intelligence to significantly enhance energy efficiency, resilience and sustainability.

“Our energy strategy is grounded in resilience, innovation, and transformation, to embrace cutting-edge solutions that are scalable and sustainable,” said Randy Burns, Chief Sustainability and Corporate Affairs Officer for O-I.

By strategically charging and discharging the battery based on grid conditions, GridBeyond’s AI-powered system helps to stabilise the local electricity grid during peak periods, increases O-I’s resilience against brownouts, and improves the grid’s efficiency and sustainability. It allows charging during times of high renewable energy availability and discharging energy to the site at peak hours of demand. With this approach, O-I is projected to conserve up to 240 tons of CO₂ emissions annually at the Alloa facility once the project is operational.

The sophisticated battery management algorithm also helps to maintain a smaller overall footprint of the grid as it smooths out the load during peak hours.

In addition, the battery system will increase power resiliency at the Alloa plant by balancing voltage dips on site and helping to prevent production equipment from tripping out.

“We are supporting O-I’s global sustainability strategy by leveraging localized product and process innovations to transform our operations,” said Jim Rankine, O-I’s UK Managing Director. “From our use of second-generation biofuels, derived entirely from renewable waste materials to leveraging AI to maximise energy efficiency, we are taking a holistic approach to achieving balance across our stakeholder ecosystem.”

“Through its AI platform, GridBeyond is a key player in supporting businesses’ energy transition and helping to deliver net zero. We are extremely proud of working with O-I and use our expertise to support the company to deliver a sustainable future,” commented Michael Phelan, CEO at GridBeyond.

As part of O-I’s vision to be the most sustainable, and chosen, supplier of brand-building packaging, the company aims to reduce GHG emissions by 25% by 2030. To learn more about O-I’s sustainable packaging for wine and its global vision for sustainability, visit the company’s website.

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But when we recently surveyed 500 businesses across Europe, only 22% said they have good control of their energy consumption, and only 14% said they have good control when it comes to staying resilient against energy market volatility. This is having a significant impact: 40% said that unpredictable energy costs are limiting their organisation’s growth trajectory.

A range of factors are at play. A tough macroeconomic environment is creating uncertainty over energy cost and supply. Ongoing regulatory changes are proving difficult to keep up with. The distanced post-pandemic workplace is making it harder to track and respond to energy demands. Growing pressure from stakeholders to decarbonise means organisations need to reevaluate the energy spectrum from the ground up.

Amid so much complexity – what steps are organisations taking to strengthen control of energy?

Our research found that there are three key focus areas:

• Organisations with greater confidence in their data deal better with energy management overall. Our results show that data leaders are more likely (by 27 percentage points) to feel they have good control over their energy consumption, compared with those with little confidence in their energy data.
• Onsite energy generation is proving a popular way to mitigate volatility. Two-fifths of the businesses we spoke to said the appeal of onsite generation was in its ability to mitigate volatility in the market. It’s easy to see why 63% of businesses said they intend to increase onsite generation capabilities over the next two years.
• Uninformed leaders are struggling to make the right investment decisions. Ineffective financial assessment frameworks are the number one factor delaying onsite generation. Re-education and reengagement of leadership is critical.

It all adds up to the need for a more assertive approach – one that’s focused on regaining control over an organisation’s energy costs and long-term sustainability.

To help you build the business case for a new strategy, download our report ‘How data, onsite generation and leadership strengthen energy control’. Inside you’ll find more information and recommendations on how to transition energy from a cost centre that drags on business growth to a resource that propels it.

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Get it right and it can be an amazing success, but get it wrong and it can be a catastrophe.

For all the developments within the PPA market, getting the clarity and independent expertise needed to operate effectively hasn’t kept pace.  Finding relevant, real-life commercial support and knowledge from unbiased, trusted, independent advisors, that have actually used PPA contracts and fully understand their pro’s and con’s has been tricky to find. This is leaving many companies in a confused state about what is the best path to take.

To fill the gap, Cielo Energy, built on 30 years of front-line electricity market experience, has created a series of on-line, easy to access and simple to understand courses on PPA contracts. The online curriculum is built to provide focussed training covering the real-world commercial realities of PPA contracts, delivering clear knowledge in an easy to understand, digestible format.

Stuart Lloyd-Evans, Managing Director of Cielo Energy says, “I was involved in my first PPA contract in the late 1990’s and have stayed close to the market ever since.  PPA contracts can be fantastic if used properly, but the key to long term success is really understanding what you’re getting into up front, and being able to ask the right questions. We take an awful lot of calls from companies, who need simple, basic, straight forward commercial assistance with PPA’s. This is why we have created the online PPA training courses.  Available at your convenience, for buyers and sellers, making sure this potentially complex subject is covered in a straight forward real-world way.”

The Cielo PPA Courses cover a short, but information packed, ‘Executive Summary’ Course for those looking to really accelerate their knowledge quickly.  Aimed at senior leaders and new entrants to provide an effective introduction to the PPA marketplace.

There is also a longer more in-depth ‘Effective Implementation’ Course covering the commercial realities for buyers and sellers – aimed at those using or thinking about using PPA contracts themselves, or are party to clients using them.  Typically appropriate for, advisors, analysts, investors and academics, investors, lawyers, and renewable energy companies.

On completion, included in each course is a free 1:1, 30-minute consultation with one of the Cielo experts, allowing you to focus on any specific questions you have, relevant to you and your business.

Naturally, Cielo are well placed to handle any PPA Agreements for you, if that’s your preference. The key thing to remember that as an Independent Advisor, Cielo Energy has your best interests at heart.

Visit Cielo Energy or get in touch to see how we can help make your decarbonisation journey a long-term success, or contact us via email.

The post PPA contracts: Getting the knowledge you need, when you need it appeared first on theenergyst.com.

Now in its third year, the Business Energy Tracker is a major annual piece of research into the impact of the energy market on business confidence. Previous reports have been submitted to important stakeholders, including those at government-level, to ensure the voice of business is heard.

It’s an opportunity for your business to have its say on energy risk, how you feel about net zero, and the policy support you would like to receive from the UK government.

This year, we are also looking at the important topic of energy data, and how it informs your energy management and net zero strategies.

We would like to invite you to have your say by completing this year’s survey, which should take around 10-15 minutes of your time.  The survey can be accessed here. 

Many thanks for taking the time to be part of this important research.

The post The Business Energy Tracker 2024 report appeared first on theenergyst.com.

While tolling arrangements and floor prices act to provide a predictable income, the merchant model, where revenues are tied to market prices, introduces an element of risk but also the potential for higher returns. As stakeholders gain a deeper understanding of the risk-return dynamics within the battery storage sector, a more balanced and informed investment landscape emerges.

This trend signifies a maturing market where investors are progressively embracing the potential of battery storage assets while strategically managing associated risks, says GridBeyond’s latest white paper ‘Tolls, floors and merchant models: Do higher risks mean higher returns for battery storage investors?’ by Scott Berrie, Asset Development Director at GridBeyond.

The paper also looks at the battery storage models, associated risks and potential profitability. There are numerous financing options available for battery storage assets including tolling model, merchant model and trading opportunities like Frequency Response Services, Capacity Market and Balancing Mechanism (BM), and wholesale market trading. High energy prices, capacity market auctions, new frequency response products, local flexibility tenders and pathfinder projects have further increased investor appetite for energy storage technologies. Investors are also getting more comfortable with the associated merchant risk and understand that in the absence of long-term or government-backed contracts, the market has created mechanisms that allow a route to market for battery systems says Scott Berrie.

Scott Berrie, Asset Development Director at GridBeyond commented, “Storage assets are a great opportunities for businesses which can increase their revenues according to their strategy and objectives while moving towards net zero goals, AI together with a suite of trading services, allow businesses to generate revenues allowing full access-to-market and to the most lucrative balancing services”.

Download the white paper here.

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National Gas Metering recently entered into a strategic partnership with Tyseley Energy Park, providing an ideal base to enable research and development into hydrogen gas infrastructure and metering products, building capability and competence to provide evidence to support the use of hydrogen in commercial settings.

The NGM Hydrogen Team has worked tirelessly with its appliance partner, Falcon Food Services over the last six months in designing a hydrogen service from scratch developing a hydrogen supply system, connection, metering and environment into a commercial kitchen – replicating hotels and restaurants across the country.

The kitchen was built using rigours safety standards and includes safety protective devices both passive and active systems to ensure high levels of process safety.

The team collaborated with multiple external partners and industry stakeholders, including Falcon Appliance manufacturers (who will use the facility to test their appliances working on hydrogen), Metersit, Pietro Fiorentini and Enertek Consultants plus others.

Hydrogen has the potential to support a net zero future and at the point of combustion as it burns without any carbon dioxide releases. The kitchen was officially commissioned to allow the consumption of hydrogen on 29 February.

Metering Head of Commercial Simon Jamieson said: “This is an exciting moment on our hydrogen journey and a testament to how multi partner collaboration can come together to develop solutions that support energy futures.  We look forward to sharing more updates on the projects happening in our facility at Tyseley Energy Park in the future.”

For more information on how National Gas Metering can assist your business with the transition to hydrogen please click here.

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The provisional results of the T-4 2027-28 Capacity Market auction were published on 27 February with a total of 42,831MW in capacity agreements awarded to capacity market units at a record high clearing price of £65/kW.

Launched in 2014, the Capacity Market is a mechanism introduced by the government to ensure that electricity supply continues to meet demand by offering to pay providers for making supplies available at short notice. The latest T-4 auction cleared in Round 2 with 42.831GW procured (lower than the target procurement capacity of 44GW) across 540 CMUs. GridBeyond cleared 264MW, including 12.2MW of long duration new build units.

By fuel type the majority of the awarded capacity will come from:

• Gas (66.97%),
• Interconnector (15.38%)
• Pumper storage (4.38%)
• Demand side response (2.64%)
• Battery storage (2.37%)

Separately the T-1 Capacity Market auction cleared at £35.79/ kW/year. GridBeyond has secured 254MW – the largest T-1 position for demand side response – in the auction, which took place on 20 February. In total, 7.6GW of capacity was awarded across 277 capacity market units.

Mark Davis, GridBeyond Managing Director for UK and Ireland commented:

“Flexibility plays a crucial role in our electricity system and these auctions are increasingly beginning to shape what our power system could look like towards the end of the decade. But it’s essential that they begin to deliver capacity at scale that is either low-carbon or capable of rapid decarbonisation.

“The aim behind the Capacity Market is to provide an incentive for generators to invest in assets that can provide guaranteed capacity when called upon or face penalties. The auction falling short of its target capacity reinforces the need to push forward with the next generation of flexible energy assets.

“Through our Capacity Market Clearing House GridBeyond has supported a large number of clients and generators in matching short or long positions regarding their capacity obligation so that they avoid the penalties that the delivery body can bestow whilst also optimising their revenue opportunities.”

About secondary trading
One aspect of the capacity mechanism that has not yet received much attention is the secondary trading of capacity agreements. This is when units to transfer their secured Capacity Market agreements to other parties.

While few secondary trades have occurred to date, the need for secondary trading may grow over the next few years as more capacity reaches the end of its life and the proportion of new build capacity, securing agreements prior to being built increases, given that generation assets generally take longer to build and could be subject to project or planning delays.

Recently the government also confirmed plans to make the Capacity Market more aligned to the UK’s net zero goals by increasing penalties for failing to deliver obligations under a stress event from 1/24th of clearing price to 1/4th but this comes with no change in the penalty cap (200% of monthly CM revenue and 100% of annual CM revenues).

Since 2020 GridBeyond has helped a large number of customers and generators to access the Capacity Market through its Secondary Trading Clearing House. This supports participants to clear obligation commitments they can’t meet or receive an obligation if they were unable to gain one thereby avoiding costs and/ or gaining unplanned revenues.

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Fear of the unknown

Organisations’ electrification discomfort is slowing the UK’s van transition down. Just 0.9% of the country’s vans were electric last year, according to the Logistics UK report.

The concerns holding organisations back include EV vans’ payload capacities, single-charge driving distances and potential driver resistance. They also include worries over whether the UK’s charging infrastructure’s adequate.

However, fleet electrification – while a potentially expensive and disruptive transformation – brings with it opportunity. Electric vans offer a visible symbol of an organisation’s sustainability commitment, reduce organisations’ carbon footprints and help save on longer-term operational costs.

Addressing the concerns

Many of the concerns organisations have about switching to electric vans are unfounded or outdated.

In terms of payload, the fear’s that, with EV batteries making electric vans heavier than their ICE counterparts, it won’t be possible (or legal) to carry as much in them. The law in the UK used to limit the weight of loaded vehicles standard-licence holders could drive. However, the government has introduced a concession for EVs allowing for an extra three-quarters of a tonne.

“Can an electric van cover the distances I need it to without me having to stop and charge?” The familiar question regarding EV range is less and less relevant as manufacturers introduce vans able to travel further on a single charge. Fleet management company Webfleet recently set a new world record – an unmodified Fiat E-Scudo travelled 311 miles without needing to recharge!

An organisation’s efficiency – and success – often lies in the hands of its drivers. But fears of driver reluctance to electrify could be misplaced. Recent research by Churchill Expert, Direct Line Group’s specialist fleet insurance provider, suggests approximately 70% of van fleet drivers would prefer to drive electric.

The UK’s behind its target to introduce 300,000 public-facing charge stations before 2030, but lack of infrastructure needn’t be the barrier that prevents electrification. Realistically, converting a fleet of ICE vans to EVs will require an accompanying charging infrastructure investment. Investing in charging facilities – either across a network of sites or even at drivers’ homes – will keep your fleet on the move. It’ll also reduce the strain on the UK’s public-facing facilities.

Plan for success

Planning and investing wisely is crucial to the success of your van fleet’s electrification. Expert partners can offer upfront advice to set you off on the right road and end-to-end support to make sure you don’t take wrong turns along the way.

Drax Electric Vehicles offers an EV suitability assessment to help you prove the value of electrification and organise your transition plan – it doesn’t have to happen overnight. Analysing your existing vehicles’ operational requirements also reveals how best to implement your own charging facilities.

To help allay any remaining driver (or internal decision-maker) anxieties, Drax can arrange test/driving days so you can experience the vehicles and understand the charging hardware.

Added benefits

Fleet electrification isn’t just for beating the 2035 ban. It offers a number of benefits that could give your organisation competitive advantage before the decade’s out.

Firstly, EVs emit zero exhaust emissions. You can aim to power your van fleet with renewable source electricity, or, even better, energy your organisation generates renewably on-site. Switching to an electric fleet will reduce the emissions you have to report and boost your sustainability credentials and net-zero progress.

Secondly, there’s the positive associations customers, prospects and the wider public will make when they see your green vehicles. EVs offer excellent PR opportunities, particularly when you report them in conjunction with other net-zero efforts.

Thirdly, electrification offers operational cost savings. Beyond the initial associated expenditure, consider the ‘total cost of ownership’ for EVs compared to ICEs. EVs’ fuelling costs are lower, as (generally) are their maintenance costs – courtesy of fewer working parts – and they’re exempt from congestion and clean-air charges. To help reduce upfront outlay, government grants can support with the cost of buying and installing charge points.

Don’t go it alone

Another reason organisations postpone electrification is complexity – both real and perceived. Transitioning a fleet of vans that’s operationally efficient can seem hazardous. There’s lots to consider and it’s easy to feel paralysed about where to start.

Engaging an electrification partner can take the strain out of fleet transformation. Collaborating with a specialist like Drax Electric Vehicles will help you plan your transition, secure internal support, manage implementation and optimise benefits. It’ll also help minimise disruption to your business-as-usual operations – and enable you to focus on other business priorities, too.

Get in touch today

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Earlier this year, we launched our second Business Energy Tracker. This revealed the views of 100 UK businesses on the impact of the energy market on their confidence, how they are protecting themselves from energy risk, their wishes for government policy and attitudes to net zero.

It was published at a time of huge energy market volatility and uncertainty, which was reflected in many of the concerns raised by businesses, particularly when it came to energy costs.

We have now launched a new version of the report, Business Energy Tracker: Energy, net zero and business survival: the crucial role of Third Party Intermediaries, which has been updated to include the views of more than 50 Third Party Intermediaries (TPIs).

We work closely with TPIs across the country, and believe that, to get a full understanding of the perspective of business energy users, their views need to be taken into account.

TPIs are a vital part of the business energy landscape, and as such, provide valuable insight. Alongside energy suppliers, they work with business customers on a day-to-day basis, so see first-hand how they are approaching energy purchasing, as well as their attitudes to risk and their plans to invest in energy efficiency and sustainable technologies.

Therefore, this updated edition of the Business Energy Tracker represents a collective voice of both TPIs and businesses on today’s key energy issues.

We have also spoken to independent analysts at Cornwall Insight for an exclusive view on the TPI market and how they believe TPIs will play a crucial role in supporting businesses during the short-term challenges and longer-term sustainability ambitions.

A major year for the energy industry

Without doubt, energy continues to be a hot topic and key concern for businesses. The past 12 months have seen multiple announcements, including government interventions such as the Energy Bill Relief Scheme (EBRS) and subsequent Energy Bills Discount Scheme (EBDS) to provide some support from rising wholesale energy costs.

When it comes to policy, the long-awaited Energy Act was published in October 2023. In addition, new measures announced in the recent Autumn Statement included making full expensing permanent, a plan to speed up grid connections, £960 million for a new Green Industries Growth Accelerator, and the publication of a new consultation for a six-year Climate Change Agreement (CCA) scheme.

In short, there has been a considerable amount for businesses to deal with.

As the UK’s leading business energy supplier, we want to understand the concerns of businesses and represent their views on energy risk, policy and net zero to key stakeholders, including the government.

As we head into 2024, which will likely be a General Election year, the voice of business has never been more important. We are committed to working in partnership with both TPIs and businesses to make sure their voices are heard.

Business Energy Tracker: Energy, net zero and business survival: the crucial role of Third Party Intermediaries is available to download now.

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The downside for those looking to invest in this kind of vehicle is the depreciation that so often comes along with them. So, what is it that makes electric vehicles depreciate more quickly than traditional internal combustion ones?

Rapid development

This is a relatively immature technology. We can therefore be fairly sure that models released in the years to come will ship with improvements that leave the current crop far behind. We might see improvements in battery life and efficiency, and new energy-saving features which optimise the power draw.

If you’re informed about the latest trends in the industry, then you might be able to avoid much of the depreciation here. Bear in mind that super-capacious batteries of the future might not produce a proportionate reduction in price. Once motorists stop being anxious about range, they might be happy to settle for batteries of a certain size.

Battery degradation concerns

Another worry that’s dampening demand in the used car market is the possibility that a battery that has been on the road for several years might not be able to hold its charge as efficiently. While it is possible to replace a car’s battery, the procedure is often expensive.

To help with this, manufacturers and sellers might seek to reassure potential buyers of the condition of the battery through the use of warranties and other assurances. It’s worth also noting that, as the battery electric vehicle becomes more popular, we might see battery replacements happening more frequently – and this will help to drive down the costs associated with them.

Maintenance records and certification

The importance of records and certification goes beyond the longevity of the vehicle’s battery. If a detailed record of the vehicle’s maintenance history is available, then the value of the vehicle is that much likelier to hold up. If you’re looking for a used BMW, for example, you might look for certified pre-owner programs, and comprehensive service records.

Government incentives and tax credits

In many cases, the government can step in with a financial incentive to offset the anticipated costs of depreciation. This has been the approach of the UK government’s approach to road tax, which is based on emissions. There are also plug-in grants available in certain regions. You don’t need to apply for these; they are already factored into the purchase price by the seller.

The post Depreciation in Electric Vehicles and value retention strategies appeared first on theenergyst.com.

However, there are a series of issues connected to renewables which are about their intermittent nature and the integration challenged faced by grid operators. This challenge is further compounded by the diverse array of energy resources scattered across the power grid in terms of both size and location, requiring grid operators not only to take account of the system as a whole, but to manage and respond to in some cases very localised constraints.In addition, the report looks at energy storage and it identifies it as a beneficiary of the transition to a renewables dominant energy mix. This is largely because batteries contribute other services and benefits to the grid besides energy. Energy storage can transform intermittent clean energy— primarily derived from wind and solar—into a reliable source of 24/7 generation.

Finally, Energy Trends 2024 looks at how some markets have taken action to further expand the flexibility available from the demand side to support the grid during peak periods such as the Demand Flexibility Service (DFS) in the UK, the ERCOT Contingency Reserve Service in the US, introduction of ancillary services in Japan.

“The energy sector stands on the brink of its next evolution. Innovators are leading the way into a fresh era characterised by a strong emphasis on sustainability and efficiency, which are now considered essential rather than optional. At the same time, to achieve net-zero emissions, companies are redefining their strategies, embracing a flexible approach to energy utilisation as a core asset in remaining competitive within in this new landscape. Flexibility is key to ensure the success of the energy transition to a net zero future” commented Michael Phelan CEO and co-Founder at Gridbeyond.

The Energy Trends White Paper can be downloaded here

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Drax Electric Vehicles has been working with FI Real Estate Management (FIREM) since 2020 to introduce EV charging facilities to its sites and begin rolling them out across its property portfolio.

“Throughout our EV charging integration work, the FIREM team’s focus on tenant experience has been front and centre.”

“Implementing accessible charging solutions enables and encourages tenants to invest in EVs. At Drax, we’ve created bespoke charging solutions for each FIREM site to meet specific tenant requirements. But we’ve also future-proofed solutions to enable the expansion of facilities if and when tenant occupancy demands.”
Paul George, Solution Sales Manager, Drax Electric Vehicles

One of the largest commercial property owners in the UK, FIREM operates 10 million sq. ft. of office space and needed a partner to boost its sustainability credentials. The pandemic had hit the property sector hard and FIREM wanted to introduce facilities like charge stations to attract new customers and tempt remote workers back into offices.

Portfolio-wide plans

FIREM was drawn to the knowledge and wider understanding of the electrification challenge that Drax offered.

“We wanted a partner for our entire portfolio rather than just an immediate requirement – Drax stood head and shoulders above everyone else in that regard.”
Ryan Barber, Head of Offices at FIREM

“All the assistance and information that Drax has supplied has been worth its weight in gold. We initially didn’t know what we wanted – Drax was able to guide us in a way that’s delivered clear benefits for both us and our customers.”
Scott Worthington, Sustainability & Energy Manager at FIREM

Immediate requirements

Lynch Wood Park, FIREM’s ‘jewel in the crown’, was first in line for charge station implementation as part of its £2.5m internal refurbishment. Having carried out a detailed assessment of the car park and its electrical connections and capacity, Drax scheduled and shared its project plans.

“Drax gave us a very clear timeline as to when things would happen – which helped us communicate clearly with tenants so they knew what to expect.”
Ryan Barber, Head of Offices at FIREM

On-site, Drax was able to minimise disruption to FIREM and its tenants during installation. The resulting 24 charging sockets have given the existing-tenant experience a boost and acted as a selling tool to prospective customers.

Drax made sure to provide FIREM with ongoing support for its Lynch Wood Park investment, too. By monitoring hardware to spot any problems, we’ve often been able to resolve issues before site management has recognised them.

Delivering results

Drax has now installed over 50 charging sockets across four FIREM sites. This includes 24 at ‘The Woods’ in Warwick, where FIREM’s reported a surge in prospective-tenant interest since. A key tenant at Lynch Wood Park reversed its decision to leave following the property management company’s sustainability investment, resulting in a 10-year tenancy contract extension.

FIREM has firm plans for expanding its charge-station commitment to further sites – both existing and new-build – with Drax continuing to provide implementation and optimisation support.

Watch the video case study below, or download the PDF

FI-REM Case Study – Drax Electric Vehicles from Drax Energy Solutions on Vimeo.

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Renewable energy production is profoundly affected by the variation of weather conditions  a well-known fact. However, with the increasing amount of renewable assets being built, renewables start to flood the market in parallel – and impact energy market prices. The more wind farms, the more energy gathered in case of stormy weather, the more prices get pushed down. Both facts create uncertainties in long-term revenue streams.

The inherent unpredictability of weather-dependent energy generation presents a unique set of challenges for companies dealing with renewable energy. Therefore, renewable energy producers, buyers, and sellers of Product Purchase Agreements (PPAs), asset holders, and investors all face the difficulties of predicting the volume of power production, and at the same time, its impact on and revenue from market prices. Therefore, the price captured by selling renewable assets generation on the spot markets is itself very volatile.

A possible remedy: Power Quanto Indices, as a means for market participants to hedge against capture price risk (also known as Quality Factor risk). To create these indices, the European Power Exchange EPEX SPOT and Speedwell Climate Limited, a provider of weather-related data, came together in June 2022 to introduce a pioneering concept: weather-based power indices. This initiative was designed to address the natural uncertainties associated with renewable energy production – particularly those driven by variable weather conditions – and its impact on the spot prices.

The collaboration began with the launch of three distinct indices in Great Britain, starting with the Wind Index Suite. The geographical and technological scope was gradually expended and currently Wind Quanto indices are available for most of the European market areas (GB, Central-Western Europe and Nordics). Solar Quanto indices are available in four markets areas (Belgium, Germany, Great Britain, and the Netherlands), and more are to be released soon.

Renewable Quanto Indices serve several purposes:

• For renewable energy producers, as a mechanism to enhance revenue stability in the medium term.
• Meanwhile, buyers and sellers of PPAs will be able to make more informed decisions, secure long-term financing for their projects, and navigate market volatility with greater confidence.
• As for asset holders and investors, they can create more predictable financial models and support the ongoing development of renewable energy projects.

In essence, by using these indices as underlying, market participants can enter into risk-transfer contracts to hedge against potential revenue losses due to weather-related fluctuations. Quanto Indices aim to combine renewable energy generation, encompassing wind and solar power sources, with the dynamics of spot price fluctuations over varying time periods (months, quarters, or seasons). The result is an assessment of how weather-related variables impact energy markets and influence the revenues of market participants.

The market starts to pick up the tool as well. In October 2023, Statkraft, Europe’s largest renewable power generator, agreed a Quality Factor Index Swap relating to UK power, and the trade was transferred by Munich Re, a leading global provider of weather risk covers. The transaction represents a first-of-its-kind financial swap in the energy trading industry, using EPEX SPOT and Speedwell Climate new Quality Factor.

By reducing uncertainty and providing a tool to manage associated financial risk, Power Quanto Indices actively contribute to the growth and development of renewable energy projects. In an era where sustainability and clean energy are paramount, these indices offer: a solution to secure investments, to ensure more stable and predictable revenue streams, and ultimately to foster the expansion of renewable energy in the energy market.

The post Weather-Based Power Indices: Optimising renewable energy risk management in a changing climate appeared first on theenergyst.com.

This year, they are also including the views of third party intermediaries (TPIs). As a key part of the business energy landscape, you provide a unique view on the key issues impacting your customers, so can offer valued insight on how they have been navigating the recent energy crisis.

These will be summarised and included in a new version of the Business Energy Tracker, which will be released later this year.

To take part, we have created a short survey, which should take no longer than 10 minutes, the survey can be accessed here.

The post Take part in the npower Business Solutions survey on energy and business confidence appeared first on theenergyst.com.

Electric vehicles (EVs) are expanding at a fast pace in several of the world’s largest markets. This is being driven by governments and automakers who are promoting electricity powered vehicles as a key technology to curb fossil fuel use, fight climate change and air pollution, but rapid EV uptake is also creating challenges for the grid according to GridBeyond’s latest white paper The Electrification Era- Scaling up Electric Vehicles. You can download the report here. 

This white paper looks at the impact of EVs in some of the world’s largest markets and what are the challenges and opportunities faced by each country. It also considers how EVs could revolutionise the way energy is managed and used through vehicle-to-everything (V2X) technology. The paper also looks at EV fleets and the opportunities for businesses to not only secure additional revenues but to further boost their green credentials by helping the grid to increase levels of renewables generation in the energy mix.

V2X is the overall term for different forms of bi-directional charging and discharging of the EV battery, including vehicle-to-grid (V2G), vehicle-to-building (V2B), and vehicle-to-load (V2L) have the potential to revolutionise the way we use and manage energy in transportation, homes and businesses. This means that when power supply is low and demand high, connected EVs can instead release power back into the electricity network or the site on which they are parked.

Michael Phelan, Co-Founder and Chief Executive, GridBeyond commented:

“The amount of new added demand for electricity will by itself become a challenge for grids all around the world, and in particular for grids that are constrained. With charge timing, the challenge is when consumers will charge their vehicles. In most grids, the peak hours are the ones right when people are arriving home from work, so if business fleets finish operations at 5pm and immediately plug their EV fleet in to charge, that is going to be difficult for the grid operator. However, with challenge comes opportunity. Given EVs are essentially a battery on wheels, they can be utilised as an energy storage system.

“Price dynamics are already creating an opportunity for EV owners. We are helping some of our customers by finding the optimal tariffs to reduce their charging costs. By automating their systems to charge only when the electricity price has fallen to a given level, we are helping to reduce our customers’ costs.

“By going beyond optimisation and enabling bi-directional vehicle to grid (V2G) charging, these customers could send electricity back to the grid at times of peak demand. This creates a new revenue stream, by providing flexibility services when the price is right.”

The Electrification Era – Scaling up Electric Vehicles can be downloaded here

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