Enera: On the quest for the price of flexibility

Tackling grid congestions is one of the main challenges of the energy transition. With the Enera project by EWE and EPEX SPOT, a showcase for a flexibility market was created.

Enera: On the quest for the price of flexibility

The north west of Germany is a region with lots of electricity generation through wind. However, the main consumption areas are located in the south of Germany. This leads to an excess of renewable generation, often resulting in grid congestions. Flexibility can help to absorb this excess renewable generation. This solves not only grid congestions, but also avoids the curtailment of renewable energies. 

This is the main goal of Enera, a pilot project conducted by EWE and EPEX SPOT between 2017 and 2020. The Enera project created a marketplace where flexibility demand from system operators could meet flexibility supply from different technologies, such as batteries, virtual power plants, renewables and industrial loads. In case of a forecasted congestion, the system operators could buy flexibility on the market to efficiently manage their grid.

The result: Renewable energies are integrated more efficiently into the grid, congestion issues become smaller.

Thanks to an exchange-based platform, supply and demand are determined anonymously – while sending a transparent price signal.

The new frontier: Local flexibility markets for energy

In 2017, more than 30 partners joined a consortium led by EWE AG, seeking to demonstrate what a future-proof and flexible local energy market might look like. EPEX SPOT and EWE signed a cooperation agreement in February 2018. Together with distribution system operators Avacon Netz, EWE Netz and TSO Tennet, both companies developed a local market platform for system operators and flexibility providers.

Exactly one year later, in February 2019, the project was ready for takeoff: the first local flexibility market launched in north west of Germany. EWE Netz and Audi completed the first trade of flexibility on 4 February 2019. A Power-to-Gas unit was activated that efficiently consumed the excess electricity in the grid – a true example of sector coupling!

Enera is a true example of sector coupling

Enera demonstrated a solution for a safe, economical, and environmentally congestion management.

Enera: On the quest for the price of flexibility

flexibility offers were transmitted.

Enera shows: a flexibility market is not only technically possible but also has real added value for the electricity value chain. Enera helped develop a new, market-based redispatch mechanism, integrating demand-side flexibility and therewith reducing the overall redispatch costs.

What’s next for flexibility markets?

With the Clean Energy Package and the European Green Deal, the regulatory framework provides a real opportunity to advance the move towards more renewables through market based mechanisms. EPEX SPOT is a firm believer in the power of price signals to unlock the potential of demand-side flexibility. This is especially important in the context of the energy transition. Integrating consumers and making a renewable-based electricity system work is high on EPEX’s agenda. We keep working on the market design of the future – across our 13 markets. 

Enera: On the quest for the price of flexibility