Your installations are able to deliver a very valuable product for the Belgian electricity system: flexibility. By using this flexibility, your installation can decrease or increase electricity production or demand on request from the grid operator Elia. In return you get:
- a Reservation Remuneration: Elia rewards the Next Pool for having your flexibility at its disposal. Like a firefighter you are paid to remain in standby, even if there is no fire!
- an Activation Remuneration: every time your flexible power is activated, Next Kraftwerke will compensate for possible activation costs, such as lost revenues from green certificates (when regulated downwards) or fuel costs (when regulated upwards).
Elia buys its reserve power on the reserve power markets. Since we have technologies with different characteristics in our portfolio, we are able to combine them and offer different reserve products to Elia. Together with you, we determine for which product we should offer your flexibility in order to generate the highest revenues.
Real life examples
Flexible load: increased revenue thanks to smart consumption reduction
Industrial consumers often have production processes which are to a certain extent flexible. Controllable fans, pumps, cold storage or heat production can be valorised through reserve power. The concept is simple. Upon request of grid operator Elia, electricity consumption is temporarily reduced or increased. For most of the reserve products, the owner receives an activation remuneration in addition to the reservation remuneration.
Biogas installation: quick on and quick off
In contrast with renewable energy sources like solar PV or wind, but also in contrast with many conventional plants like coal or nuclear, biogas units are extremely flexible. They can ramp the production up and down in a matter of seconds to a few minutes. Some installations can even be switched off completely, with a quick restart later on.
With the help of the Next Box you become part of the Virtual Power Plant of Next Kraftwerke. You operate your plant as you're used to, while earning money thanks to the reservation remuneration. In case of an imbalance in the grid, Elia might request a downward or upward regulation. Our central control system will control your unit via the Next Box. As compensation, you receive an additional activation remuneration.
Emergency gensets: used when power is urgently needed.
To produce power with an emergency gen-set is relatively expensive. The ideal product is therefore a reserve power product which is rarely activated. The owner of the gen-set however receives a remuneration in particular for those hours when the plant is not running and only provides its potential availability (see fig. part 2). Today emergency gensets are well-placed in the product R3DP. Today no activation remuneration is paid. In the near future Elia will standardize R3 and offer an activation payment for the generic product (see fig. part 3).