Making Every Wind Power Asset Count at the Right Time

The Nordic wind power sector, estimated to grow to 240 Twh/y by 2035, is at the centre of renewable energy growth​​. In this promising backdrop, small and mid-size wind power producers face a set of challenges that impact operational efficiency and financial performance.

Publicerad

29 feb. 2024

Energimarknadstjänster

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For these operators, wind power is often a secondary business interest, meaning navigating an environment characterised by regulatory complexities, grid integration challenges, and the inherent variability of wind as an energy source​​​​ often is complex. 

In 2021, wind power contributed to 28% of Sweden’s total installed power generation capacity, with forecasts predicting wind's share to rise to 41% by 2035​​. This example of rapid Noredic wind production growth underscores the critical need for asset optimisation, enabling producers to enhance their operational efficiency, mitigate risks, and capitalise on market opportunities. 

The increasing height of wind turbines, essential for commercial profitability, exemplifies the sector's evolving challenges. For small and mid-size producers, optimising assets is not merely a strategy but a necessity to thrive in a competitive and fluctuating market. This means asset optimisation is a necessity to transform challenges into growth and financial sustainability.  

Challenges could be opportunities 

By delving into the industry's current landscape, regulatory hurdles, and the innovative solutions at play, Volue Energy Market Services acts as a guide and support for wind power producers. The insights and strategies used by the company equip stakeholders with the knowledge and tools needed to navigate the complexities of the Nordic wind power market, ensuring their ventures are both economically viable and aligned with the region’s clean energy ambitions.  

Do you want to learn more about how to maximise the value of your wind park? Watch our on-demand webinar

Volue Energy Market Services offers a robust asset optimisation service designed for the nuanced needs of wind power producers. The approach encompasses the use of advanced analytical tools and real-time market insights, allowing for the strategic trading and management of energy assets. This service includes the critical ability to control and adjust wind power generation to align with market demands, mitigating risks and capitalising on financial opportunities within the flexibility markets. 

Per Almbladh, Head of Product Management at Volue Energy Market Services, underscores the tangible financial benefits that asset optimisation brings to the table for wind power producers. 

“By leveraging the flexibility markets, asset owners are not just reducing costs but also enhancing their revenue streams. It’s a dual advantage – cost-saving and profit-making."

Per Almbladh

Head of Product Management, Volue Energy Market Services

He points to how participating in flexibility markets is not merely a strategic move but a financially intelligent one, bolstering the bottom line for producers who adeptly manage their assets. 

Taking control in a minute-by-minute setting 

Delving deeper into the operational side of things, Volue Product Manager Tommi Tähtinen emphasises the critical importance of production control: “The cornerstone of trading in flexibility markets is the ability to control your asset. Without this control, market participation carries significant risks. It’s the control that actualises the flexibility an asset can offer,” Tähtinen states. This insight highlights the essence of control in mitigating risks and ensuring the reliability of trades in the dynamic market landscape.  

Tähtinen further elaborates on Volue's approach to service customisation, "We align our services with the unique requirements of each client, ensuring that the markets they enter and the risks they take are meticulously calibrated to their preferences." This approach is a testament to Volue's commitment to providing bespoke solutions that resonate with the individual operator’s needs and risk profile. 

The wind power industry in the Nordics is navigating a complex regulatory environment, marked by significant policy shifts that directly impact the financial landscape of renewable energy projects. The European Commission’s Wind Power Package is just one example​​. Regulatory changes can lead to market challenges, as seen in the Nordic power prices that faced pressure from high hydro reserves and export capacity limits, impacting profitability and PPA negotiations​​. This delicate balance of regulatory developments and market responses underscores the need for strategic navigation by wind power entities to ensure viability and growth. 

Staying ahead of the curve 

A significant aspect of Volue’s service spectrum is its comprehensive market coverage and its proactive stance on regulatory compliance. "As a service provider active across all markets, staying up to date with market regulations is part of our DNA. Our partners can rest assured that we'll navigate and integrate market changes, ensuring compliance and continuity," says Almbladh 

Another pain point for many wind farm operators is the relative size needed of an organisation that should both be operationally adept at curtailing production at the right moment, but also having the technical skills to partake in trading at short intervals.  

Discussing the operational infrastructure, Almbladh highlights the significance of Volue’s control rooms: "The essence of our asset optimisation service is our control room's round-the-clock vigilance. It’s the human element – the expertise of personnel actively monitoring and ready to respond to the unexpected – that differentiates our service." The emphasis on continuous human oversight is crucial in a domain where timely responses can make a world of difference. 

Looking ahead, Tähtinen speaks about preparing for the future, "Our active engagement in market design projects positions us at the forefront of emerging market developments. It's about future-proofing our operations and, by extension, our clients' interests in an ever-evolving market." This foresight is indicative of Volue’s commitment to innovation and strategic advancement in anticipation of future market trends and regulatory landscapes. 

Do you want to learn more about how you can maximise the revenues from your wind park? Watch our on-demand webinar.

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