Enhancing energy trading with advanced energy storage systems
Energy storage systems can generate high profits by trading energy on the exchange. They make it possible to store energy surpluses and use them when needed, leading to optimal use of renewable energy sources. This not only promotes more sustainable energy consumption, but also helps to stabilize the electricity grid and allows consumers to benefit from price fluctuations on the energy market. Overall, energy storage systems make a decisive contribution to reducing emissions and promoting a more environmentally friendly energy future.
Overview
Energy trading: A brief overview
Energy trading refers to the buying and selling of energy in the form of electricity or gas on the energy exchange. In the context of the current geopolitical and energy industry challenges, the price spreads on the energy exchange in particular are reaching unprecedented levels. This offers economic opportunities for the use of energy storage systems. Battery storage systems in particular can make strategic use of the price differences: They are charged when electricity prices are low and discharged when prices on the electricity exchange are high. Ideally, revenue can even be generated when electricity prices are negative and the storage system is charged during these phases. Battery storage systems therefore offer the possibility of optimizing the operation of a generation plant and the storage system itself by delaying the release of energy depending on the current market price. By reacting to market prices, the battery storage system can not only increase efficiency, but also stabilize the electricity grid.
Top 3 benefits of our energy storage systems
Energy storage systems allow companies to store and sell surplus energy when it is expensive and buy a shortage of energy when it is cheap. This offers several advantages:
- Combinability: in addition to trading energy on the electricity exchange, other applications, such as balancing services, can be carried out with energy storage systems. In this way, the storage system can be used in the best possible way.
- Cost-effectiveness: Buying and selling energy on the electricity exchange further increases the cost-effectiveness of a storage system.
- Sustainability: Energy storage systems support renewable energies by balancing out their volatility. By temporarily storing the energy generated, battery storage systems shift the feed-in of renewable energy to economically attractive periods.
Optimized marketing of energy storage systems
In today’s energy landscape, the efficient and economical operation of energy plants plays a decisive role. Optimized marketing through the combination of balancing services and trading on the day-ahead and intraday markets is becoming the focus, especially for energy storage systems. This combination often proves to be the optimal strategy for marketing energy from battery storage systems. But what makes them so advantageous and how do the markets on which they operate work?
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Balancing services are essential for maintaining grid stability and quality, as it helps to balance out short-term fluctuations between generation and consumption. In addition, the operator of the battery storage system can generate revenue by offering the balancing services on the designated market and then keeping it available. In order to generate the highest possible income at all times, the battery storage system can also be integrated into electricity trading. This is where the day-ahead and intraday markets come into play.
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The day-ahead market allows energy producers and consumers to adjust their forecasts one day in advance and buy or sell electricity. In contrast, the intraday market offers flexibility by allowing energy to be traded until shortly before the actual delivery time. Due to this flexibility, the price spreads on this market are the highest. The battery storage system can buy and store electricity when the price is low and sell it again and feed it into the grid when the electricity price is high.
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Depending on which market prices are currently more advantageous, the energy from the battery storage system can be sold there. By making effective use of day-ahead, intraday and balancing service markets, energy companies can not only increase their profitability, but also make a significant contribution to the energy transition and to securing the energy supply.
Our solution for your energy challenges
If your company is or wants to be in the energy trading business, you know how lucrative energy storage systems can be in this application. Our energy storage products offer the technology and speed you need to take advantage of modern energy trading.
FAQ
What is needed in addition to the energy storage system to be able to trade energy?
To be able to trade energy, you need a generation and plant controller with an interface for traders in addition to the energy storage system. This is supplied by INTILION. You also need to select a marketer to trade the energy from your energy storage system. For detailed advice and individual solutions, a consultation can be arranged with INTILION to discuss the specific requirements and options.
How does the energy storage system recognize when it is advantageous to buy or sell electricity?
Trading companies use algorithms to continuously analyze market and weather data. This allows them to determine which trading opportunities are most advantageous for energy storage systems at any given time. The marketer then controls the energy storage system accordingly and the application is executed by the battery storage system.
What is the smallest unit of energy that can be traded on the electricity exchange?
The smallest unit of energy that can be traded on the electricity exchange is 100 kilowatt hours (kWh). However, it is recommended to trade in larger units, as this makes the transaction more lucrative.
Conclusion
Companies benefit significantly from the implementation of energy storage technologies as they enable them to store energy surpluses efficiently and act strategically on the energy market. By buying energy when electricity prices are low and selling it when prices are high, even taking advantage of negative price phases, they maximize their profits while helping to stabilize the electricity grid. These strategies also support sustainable energy consumption by promoting the integration of renewable energy sources and balancing their fluctuations. INTILION offers specially developed battery storage solutions that help companies to take advantage of these benefits and position themselves successfully in modern energy trading.