Market Analysis - Participation in a Balance Energy Pool by Sewage Treatment Plants and Water Works
Electricity production and consumption change to a more flexible schedule to balance the grid stability of both matching components. One way to achieve this goal is through the use of balance energy. Sewage treatment plants and water works can potentially be involved in this market by participating in a balance energy pool.
Andrea Giovanoli & Tim Häuptli, 2018
Bachelor Thesis, Alpiq AG
Betreuende Dozierende: Holger Wache
Keywords: balance energy pool, grid stability, water works, sewage treatment plants, electricity production and consumption, business case, key performance indicators, Alpiq AG
Most water works and sewage treatment plants offer too little balance energy to directly place their bids in the market. Through pooling the individual players' participations, a pool operator can offer the greater volume together. Alpiq AG already possesses such a pool.
Previous studies have shown that the participation in a balance energy pool is possible for sewage treatment plants and water works. The goal of this bachelor thesis was to estimate the size of the market in Switzerland and Germany and whether it is financially worth for Alpiq AG to further invest in this service provision.
Upon the definition of the key performance indicators, lists of sewage treatment plants and water works have been created for the two countries individually. Once the basic list has been created, the potential participation in balance energy pools of each individual sewage treatment plant and water work was estimated. This allowed the calculation of the estimated revenue for both, the balance energy provider and the pool operator. The business case was then built around this number and it was determined whether and how to proceed.
The sewage treatment plants offer a market potential. Whether it is easily convertible depends on the adaptability of the system. Should it be somewhat easy and direct to adapt the system to the individual sewage treatment plants' needs, the market potential is convertible. The next step is to firstly try the system in Switzerland. If net gains result, the system should be marketed in Germany.
There is no real market potential in the water works industry. The issue is that the tertiary balance energy is renumerated at too low levels. This makes it highly unattractive to invest further in the service provision for water works.
Studiengang: Business Administration International Management (Bachelor)
Fachbereich der Arbeit: Economics