German Power System

- Germany-(update 2016)

Energy Structure NCs

German Power System

Basic facts

• Area: 357 168km²

• Population: 81 272 000 (2015)

• 4 TSOs

• 883 DSOs (source: BNetzA)

• 45 Mio. consumers(source: BNetzA)

• Peak load: approx. 86 GW(source: German TSOs)

• Average interruption of electricity (2014): <12 min(unplanned interruption without exceptional contingencies (source: VDE))

1

German Power System

Germany in the European meshed grid

Sour

ce :E

NTS

O-E

2

• Interconnectors to:

Austria; Czech Republic; Denmark; France; Luxembourg; Poland; Switzerland; The Netherlands.

German Power System

• The electricity grid in Germany is sub-divided into transmission grids (maximum voltage) and distribution grids (high, medium and low voltage)

Grid facts and characteristics

Voltage Level Total length(approx.)

Responsibility

Transmission Grid 380kV 20 000 km TSOTransmission Grid 220 kV 16 000 km TSOHigh Voltage 60 kV to 110 kV 77 000 km DSO

Medium Voltage 6 kV to 60 kV 479 000 km DSOLow Voltage 230 V or 400 V 1 123 000 km DSO

3

Sour

ce :B

MW

I

German Power System

Structure of electrical power supply

TSO

380 kV

220 kV

110 kV

20/10 kV

380 V

Industry

Households

Utilities

TSO

-Grid

DSO

-Grid

Bulk-Industry

DSO

Dispersed Generation

Conventional Generation

Sour

ce :

Ampr

ion

Gm

bH

4

German Power System

High Voltage Grid

Sour

ce :

FNN

5

German Power System

The 4 German TSOs

Amprion

50Hertz

TransnetBW

TenneT

Amprion TenneT 50HertzTransnet BW

Network length [km] (380 kV) 5.300 5.800 6.870 1.970

Network length [km] (220 kV) 6.100 5.300 2.870 1.721

Served area [km²] 73.100 140.000 109.000 34.600

Annual transmission [TWh] 27 20 18 11

Share load [%] 35 32 19 14

Source : German TSOs

6

http://www.amprion.net/en/ http://www.50hertz.com/en/http://www.tennet.eu/de https://www.transnetbw.com/en

German Power System

In case of (n-1)- security violations in the EHV-grid due to high dispersed generation TSO and DSO collaborate to lower the infeed of renewable generation in DSOs grid. TSO initiates and DSOs operate these measures according following cascade:

Cooperation of TSO and DSO:Cascade in Generation Dispatching of Renewables

Sour

ce: B

DEW

Transmission grid TSO

Generation LoadGrid area

Distribution grid 1. Level DSO DSO

Distribution grid 2. Level DSO DSO

Distribution grid n. Level DSO DSO

Hallo77

German Power System

Responsibilities within the cascade

• TSO monitoring the overall system

• Responsibility for SoS*• Operative contact to DSOs /

generators on TSO-Level• Requests support by the DSOs TSO

DSO

• Monitoringown system

• Operative contact to generators on DSO-Level

• Support of TSO to operate the cascade

Cascade

• Support of TSO / DSO to SoS through decreasing / increasing the power of generation units

Generation facilities

• Support of industrial customers to SoS through decreasing / increasing load

• End user can be disconnected

Consumers

*SoS = Security of Supply

8

German Power System

Power structure Germany

9

Nuclear Power

Oil Residue

Natural Gas

Hard Coal

Lignite

Waste

Refinery Gas

Other Gas

Oil

Wind

Hydro

Furnace Gas

PV

Biomass

Source: Umweltbundesamt

Power Plants > 100 MW

German Power System

Installed capacity with reference to primary resources

10

GW0 5 10 15 20 25 30 35 40

others

oil

biomass

hydro power

nuclear power

lignite-fired

gas-fired

hard coal-fired

wind power

photovoltaics

source: BMWI

installed capacities [GW], 2014

German Power System

Energy production with reference to primary resources

11

TWh

0 20 40 60 80 100 120 140 160

others

oil

hydro power

photovoltaics

biomass

wind power

gas-fired

nuclear power

hard coal-fired

lignite-fired

source: BMWI

electricity generation [TWh], 2015

German Power System

0%

5%

10%

15%

20%

25%

30%

35%

2010 2011 2012 2013 2014 2015

Others

Gas

Renewables

Lignite

Hard coal

Nuclear

Development of Generation Capacitysince 2010 (share of primary energy)

Source: Amprion GmbH

12

German Power System

Consumption

industry47%

households25%

business sector15%

public institutions9%

agriculture2%

transport sector2%

power consumption by consumer groups, 2014

Source: BDEW

13

German Power System

Renewables

14

German Power System

Location of RES

Installed Wind turbines

Source: IWES

Installed PV panels

15

German Power System

42 74 155309

505 428534

793

1.5681.665

2.659

3.247

2.645

2.0371.871

1.200

1.8001.600

1.880

1.357

1.913

2.500

2.055

3.582

4.143

110 193 334 643 1.1371.5462.0822.8754.445

6.095

8.754

12.061

14.60916.629

18.50019.700

21.50023.100

24.98026.387

28.30030.800

32.855

36.437

40.580

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

Development of Capacity

Accummulated Capacity(End of Year)

MW MW

Development of Wind Power

Sour

ce: I

WES

, TSO

s

16

German Power System

3.806

5.515

7.200

8.654

4.630

1.313 1.3635.979

9.785

15.300

22.500

31.154

35.78437.097 38.460

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

2008 2009 2010 2011 2012 2013 2014 2015

Development of Capacity

Accummulated Capacity(End of Year)

MW MW

Development of PV Power

Sour

ce: B

Net

zA, T

SOs

17

German Power System

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000RES generation DInstalled capacityAverage RES generation DMW

PDE

min. EE: 118 MWWind: 118 MWPV: 0 MWca. 0,2% (19.11.2014; 23:00)

h-Values

max. EE: 47.634 MWWind: 34.637 MWPV: 12.609 MWca. 62% (30.03.2015; 15:00)

Sour

ce :

Ampr

ion

Gm

bH

RES Installed Capacity and Production since 2011

Hallo18

18

German Power System

Market

19

German Power System

Price development for industry consumers

generation, transport, distributionCHP-surchargesheddable loads contribution

concession levy§19 grid fee contributionelectricity tax

EEG contributionOffshore contribution

Source: BDEW

Average price for electricity for industry consumers [cent/kWh] (incl. electricity tax)Yearly consumption 160 – 20,000 MWh

*since 2010: implementation AusgleichMechV

20

German Power System

Price development for households

Average price for electricity for households [cent/kWh] Yearly consumption about 3,500 kWh

supply, grid fee, distributiongrid fee incl. Measurement, accounting, monitoring networkconcession levyCHP-surchargeoffshore contributionelectricity tax

supply, distributionvalue-added taxEEG contribution§19 grid fee contributionsheddable loads contribution

*since 2010: implementation AusgleichMechV **offshore contribution negative in supplementary entry Source: BDEW

21

German Power System

-250

-200

-150

-100

-50

0

50

100

150

200

250

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000RES generationPrice Power ExchangeTrend RES generationTrend Price Power Exchange

Development Price Power Exchange and RES

Sour

ce: A

mpr

ion

Gm

bH

MW €/MWh

22

German Power System 23

EEG apportionment

Energy supply

Federal and financial funding grouted under EEG

RES

HändlerHändlerSupplier

EEG apportionmentnationwidedto energy price

HändlerHändlerConnection andcompensation obligated SO

Final consumerPrivilegedfinal consumer

ElectricityEnergyMarket

Energysupply

Marketing throughcontrol areaTSO

EEG-AccountEEG-Account

EEG-AccountEEG-AccountControl area

TSO

Horizontal balancing adjustment

Vertical balancing adjustment

Costs / Proceedsmarketing

Proceeds fromdirect marketing

Power

Exchange

Upon application: EEG apportionmentcostreduction

to energy price

Final consumer with own power production

EEG apportionment toown consumption

Federal and financial funding less network charges

German EEG concept

€

German Power System

GERMANY – Power balance 2015

generation651,8 TWh

consumption600,00 TWh

difference~ 52 TWh

Source: BMWI

24

German Power System

Energy exchange

Commercial flows Physical flows

Values in TWh, Jan 2015 – Dec 2015, Source Amprion

Export D

Import D

25

NL

BE

LU

FR

CH AT

CZ

SEDK

11,73

2,08

2,11

1,94

0,17

3,07

0,76

0,1216,29

Germany

2,25

2,99

7,80

3,61

31,87

5,00

1,362,70

0,12PL

Export 72,21Import 23,76

NL

BE

FR

CH AT

CZ

SEDK

2,08

2,11

1,94

0,17

3,07

0,76

0,34

PL

23,96

12,11

1,36

3,02

16,06

3,48

17,77

6,10

6,270,02

10,66

LU

Export 79,12Import 32,16

Germany

German Power System 26

Market Coupling – General principle

• 08:15: Latest time for market participants to nominate Day-Ahead Use acquired rights or capacity given to Market Coupling - Use-it-or-Sell-it

• 08:15: Nominations are summed up and sum is send to Common System Common System calculates with help of nominations the CZCs

• 10:30: Common System sends the collected CZCs to the exchange system• 12:00: Order books of power exchange close• 12:55: Final market results are send to all market participants• 14:30: Deadline for nomination of schedules

CZC: cross zonal capacity

08:15 10:30 12:00 12:55 14:30

Capacitynomination

Calculation & Distribution CZCs

Closing of Order books

Publication of Market results

Deadline schedules

German Power System 27

Price Coupling of Regions (PCR) in Europe

Sour

ce:

Epex

Spot

WHAT is PCR? Price Coupling of Regions (PCR) is the initiative of seven European Power Exchanges to harmonise the European electricity markets

HOW is this done?

By developing a single price coupling algorithm to be used to calculate electricity prices across Europe