B&P supports buyer of a cogeneration plant
Our client is acquiring a current-regulated cogeneration plant (CP) that is fired with gas. The cogeneration unit is part of a portfolio containing several cogeneration units with more than 40 MW total capacity at the same site in Brandenburg. The power plants are intended to be used in the electricity balancing market. Brandhoff & Partner are supporting the investor with all related legal questions. These include matters relating to energy law as well as reviewing and negotiating the agreement for the purchase of the units, the land use agreement and the maintenance agreement.
Since the minimum size of a unit participating in the control energy market was reduced from 5 MW to 1 MW, plant operators are finding a profitable option in selling their capacity on the energy balancing market. Capacity from batteries and energy storage systems used for loading energy from photovoltaic or wind energy systems can also be sold on the energy balancing market. The background: The four transmission system operators (TSO) in Germany are responsible for ensuring that the network remains stable, that is, for balancing any power imbalances in the German grid. That is why they have to maintain flexibility in production and consumption capacity at all times. Because they do not control any energy production or consumption systems themselves, they invite bids for the necessary control energy capacity in auctions in Germany.