Enefit’s new service can double the revenue of solar parks

Enefit has launched an energy service that can increase the revenue of solar parks with a capacity of 300 kW or more by up to two times. The company provides access to the balancing market and limits electricity generation from the solar park when electricity exchange prices are negative.

‘This is a breakthrough in the Estonian solar energy market. A portfolio-based approach brings together many smaller parks into a single entity and places them on the energy market,’ said Roland Murakas, head of B2B segment at Enefit. ‘The more solar parks Enefit manages, the greater the revenue for the solar park owners. Under current market conditions, the profitability of a solar park could increase by an estimated 50–100%. For example, in the case of a 1 MW solar park, this would mean an additional annual income of €12,000–24,000,’ he added.

With the new solution, Enefit takes over the management of the solar park and adjusts its production according to electricity market prices. If the exchange price is close to zero or negative, generation is reduced to avoid losses. The solar park also gains access to the balancing market* (mFRR), enabling it to earn additional revenue for helping to balance the energy system.

There are an estimated couple of thousand solar parks in Estonia that could benefit from the service. The solution has been tested and works successfully with Huawei equipment. Integrations are being expanded according to customer needs. ‘We prioritise integrations with larger capacity. The same applies to different types of equipment,’ Murakas confirmed. 

To use the service, one must sign an electricity contract with Enefit and have a control device installed that communicates in real time with the company’s management platform. ‘During the development and testing of the product, we worked with several companies, and we are now ready to offer the service more broadly,’ Murakas added.   

If the solar park’s inverter is already integrated with Enefit’s system, setting up the solution takes about two weeks. Enefit only receives payment for the service when the solar park generates revenue.

*The balancing market is a mechanism for maintaining the stability of the electricity system. Its aim is to keep the frequency of the electricity network stable (50 Hz in Europe). Excessive frequency fluctuations can damage equipment and the electricity network itself.

To participate in the balancing market, market participants must be ready to respond with their assets within a set time frame and to maintain capacity for a certain period. In other words, participants increase or decrease generation or consumption to help keep the frequency stable. Market participants are compensated for this service.*

*mFRR (manual frequency restoration reserve) is a part of the balancing market that helps maintain the balance of the electricity system. Participation in the market is open to those who can offer at least 1 MW of capacity, which the system operator (Elering) can manually activate within 15 minutes in the event of frequency or balance disturbances. To do so, the electricity-generating or -consuming device must comply with Elering’s technical and operational requirements and be ready to operate at full capacity within 15 minutes of receiving the order.

For more information and to join, companies can contact us by email at [email protected] or by phone on 777 2020. Enefit’s business customers may contact their personal account manager.