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Wind power could be traded on day ahead market
1 May 2007
Wind power could be traded on the day ahead market of the German energy exchange EEX as soon as October, if tests conducted next month prove successful. The plan is the brainchild of German regional energy company EWE, wind developer and operator WPD, and energy meteorology specialists Energy & Meteo Systems. If it goes ahead, the power marketed via EEX will not be eligible for the fixed power purchase prices under Germany's renewable energy law. For operators of older turbines, the EEX option could prove worthwhile. Many are now only eligible for the basic rate of payment of EUR 0.0517/kWh (in 2007) under the law, so when predicted power prices for the next day are higher on the EEX it makes sense to trade, says WPD's Christian Schnibbe. EWE has calculated that over the period from autumn 2005 to spring 2006, direct marketing of wind power could have increased earnings by 1.5-4% over the fixed tariffs payable under the law. EWE's energy trading floor will handle the wind trading business, much of it to come from plant owned or operated by WPD, EWE, and other operators. WPD currently operates 1600 MW of Germany's 21,000 MW of wind power, while EWE has 60 MW. The companies, which are planning a joint trading company for the business, plan to start with a pool of about 2000 MW of wind power. Energy & Meteo Systems is providing the software and services for wind forecasting, power pooling and availability, and risk management.
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