Glossary

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  • a
  • Arbitrage

    Arbitrage in the energy sector is the purchase and sale of electricity to profit from differences in price between delivery times. For example, a battery will buy and store electricity at low prices and sell the electricity at much higher prices time spots.

  • c
  • Commercial Operation

    All approvals, permits, licenses, agreements and registrations that are required for the generator getting connected to the grid.

  • Committed Availability

    Percentage of actual number of available hours of the generator per year.

  • d
  • Day Ahead Market

    The day-ahead market enables market participants to sell and buy power one day before physical delivery. Most of the wholesale markets close the bidding at noon.

  • e
  • Electricity Generation Facility

    Any technology or device that generates energy for consumer use, including everything from utility-scale fossil fuel power plants to rooftop solar panels.

  • Energy Output

    The total amount of electricity generated by the generator per period during the term as measured at the point of delivery.

  • g
  • Greenhouse Gas Protocol

    The first edition of the GHG Protocol was published in 2001 and clarifies how companies can measure emissions from electricity and other energy purchases, and account for emissions from throughout their value chains. All emissions are classified in the three categories Scope 1, Scope 2 and(...)

  • Grid emission rate factor

    The grid emission rate factor displays the average emissions generated by all energy facilities (e.g. coal, lignite) within a grid system. Often it is possible to calculate the emission factor on a smaller grid area to achieve higher accuracy.

  • h
  • Hydrogen

    Hydrogen (H) is the most abundant element in the universe and experiences a trend in the energy sector as its lacking of feasible storage systems. With the renewable energy transition at some times, there is much more electricity available as demanded and needs to be shifted to a period where(...)

  • i
  • Intraday Market

    The intraday market enables trading 24/7 every day until one hour and in some cases until the delivery hour. In general, the intraday market supports market participants to optimize their power portfolios traded on the day-ahead market and reduce under/ -oversupply.

  • l
  • Load Shedding

    Load Shedding is a synonym used for Peak Shaving.

  • Load Shifting

    Load Shifting is defined as a short-term reduction of electricity consumption by rescheduling a certain amount of electricity to a later date when power prices or grid usage is lower. Load Shifting can be realized by turning on own onsite Electricity Generation Facilities or turning off(...)

  • m
  • Markt to Market

    Contracting parties do fix the power price when signing a Power Purchase Agreement. Each of the contracting party has different assumptions about the future price development of power markets. The real-time value of power is however determined at the time of generation by the real-time power(...)

  • Merchant Risk

    Merchant risk relates to volatile power sales on the wholesale market. Due to multiple effects, the power prices can fluctuate dramatically within a daily trading period or between individual years. On one side periods with high wind speeds relate to dropping short-term power prices du to high(...)

  • p
  • Production Guarantee

    Production Guarantee means the Independent Power Producer, or more precisely the Special Purpose Vehicle (SPV), has the obligation to deliver a certain volume during a certain period (i.e. Settlement Period). In case the production volume is below the guarantee amount AND the damage is solely(...)

  • s
  • Scope 1 Emission

    All Direct Emissions from the activities of an organisation or under their control. Including fuel combustion on site such as gas boilers, fleet vehicles and air-conditioning leaks.

  • Scope 2 Emission

    Indirect Emissions from electricity purchased and used by the organisation. Emissions are created during the production of the energy and eventually used by the organisation.

  • Scope 3 Emission

    All other Indirect Emissions from activities of the organisation, occuring from sources that they do not own or control. These are usually the greatest share of the carbon footprint, covering emissions associated with business travel, procurement, waste and water. In most of the cases the(...)

  • Spot market

    The spot market enables multiple market participants to trade multiple standard trading products (e.g.Day-Ahead, Futures etc.). Physical products have to be settled at least two days after the conclusion of the transaction. In general, the traded volume of the spot market represents about(...)

  • t
  • Termination Payment

    In case of termination following default by the other party,the termination payment represents the compensation of the default party. This can be either a formula based approach with linking to the power market or a fixed payment sum.

  • w
  • Wholesale Market

    The wholesale market enables power producers and buyers to sell or buy multiple energy-related products. In general, the traded energy volume on the wholesale market represents up to 20% of all electricity traded, because the highest amount is still traded over-the-counter (OTC). Overall the(...)