CASE STUDY - Boosting the value of each MWh renewable energy with TokWise solution

Image by TokWise.

October 7 (Renewables Now) - Unpredictable revenues from the wholesale energy market, combined with rising imbalance costs are among the challenges faced by renewable energy players in the post-subsidy world.

As economic recovery is under way energy prices have been rising steadily. In the last few weeks they reached record highs in Europe. Since September they have climbed steadily, +36% in France; +48% in Germany; and prices are reaching 500 EUR/MWh in Britain. This surge is explained by multiple factors, such as issues with gas supply, higher demand for LNG and coal, as well as increased prices of CO2 emissions and intermittent renewable generation. 

The fact is that market participants are facing huge price volatility. All these factors have a significant impact on the growing costs and return on investment (ROI) predictability.

Technology company TokWise has developed a solution that can maximise the profits of renewable energy generators in the transition phase. The tailor-made Commercial and Forecast (C&F) Optimization Service is designed to increase the value of each MWh of green power on the market.

The innovative solution combines big data and advanced analytics, offered as Software-as-a-Service. Leveraging resilient technology and proprietary Machine Learning (ML) based algorithms, TokWise is adding an extra intelligence layer to trading operations to reflect all market dynamics and minimise costs. As a result an optimised position is calculated to provide a higher P&L.

Success story from Germany

The C&F service has a good outreach in Europe, especially in Germany. TokWise shared with Renewables Now figures from a client in the country, a large green energy aggregator with more than 1,000 wind and solar farms and over 5 TWh of annual power generation. Before adopting the C&F solution, the client was facing increasing imbalance costs and it looked for a way to hedge against spot market volatility.

TokWise’s C&F Optimization Service boosted the profit of the aggregator, adding an extra EUR 1 per MWh. The improved results were achieved through effectively arbitraging between various energy markets. 

Profit Improvements after applying C&F Optimization Service

The process beyond the numbers

The C&F Optimization Service is a next-generation trading strategy designed to accelerate renewable energy integration and the growing market complexity. The key characteristics outlining the service:

 ❖      Data-driven bidding strategies based on advanced data management architecture and Machine Learning algorithms to accurately capture the market and grid complexity

❖      Convert market volatility into additional revenue streams by proactive arbitraging

❖      Fully compatible with energy storage

❖      High level of customisation to adapt to unique market conditions and internal risk management policies

❖      API-based service where all technical constraints are managed by TokWise.

How it works

TokWise is a combination between resilient technology and a disruptive model which focuses on the value generated for each megawatt. The transparent commercial model is in alignment with this philosophy. The company shares the incentive and risk with the client as a partnership approach and is offering a non-binding pilot phase to prove value before the client decides for long-term commitment. 

The API-based service ensures agile integration into the client's daily operations. The team is extremely tech oriented with deep knowledge in the domain and pioneers in the digitisation of energy centric processes through AI.

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TokWise is a cross-functional tech platform for green energy portfolio optimisation.

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