Rotterdam/Groningen, 20 May 2014 – A growing proportion of our electricity consumption is now wind-generated. But when wind speeds drop, energy companies are still obliged to supply energy to their customers. Modern gas-fired power stations are a highly suitable back-up for wind power since they can regulate their output very flexibly. Gas is also the world’s cleanest fossil fuel. In order to better manage the supply risk, gas trading company GasTerra and energy company Eneco have developed a new product: wind-dependent gas supply. Depending on the anticipated wind speed, GasTerra will increase or decrease the volume of gas it supplies to Eneco, with not only the volume but also the gas price itself being linked to the wind speed. The two companies signed the agreement yesterday at Eneco’s wind farm in Houten.
Under the new agreement, the wind speed forecast on a particular day determines the volume of gas supplied and the price charged by GasTerra to Eneco the following day. If wind speeds are low, the volume and price of gas supplied go up and during periods of high wind speed, the opposite happens. The prices charged are set on the free gas trading platform (Title Transfer Facility). This enables Eneco to use gas to offset fluctuations in wind-generated electricity and its associated costs, and GasTerra to assume part of the risk associated with fluctuating wind speeds.
Both parties see the agreement as an important step in making the supply of energy in the Netherlands more sustainable. Kees-Jan Rameau of the Board of Management of Eneco Group (left on the photo): ‘Eneco occupies an important position in the wind power sector, which is why we chose this location in which to sign the agreement. This product makes it easier for us to respond to weather conditions when buying in gas. If high winds are forecast, we buy less natural gas and vice versa. The agreement with GasTerra ties in excellently with our sustainability strategy, in which we give preference to the use of a relatively clean product such as natural gas as a back-up to wind power.’
The concept was equally new to gas trading company GasTerra. ‘We’ve never before marketed a product in which the conditions of gas supply were dependent on forecast wind speed,’ said GasTerra CEO Gertjan Lankhorst (right on the photo). ‘This innovative product reflects the prominent role which GasTerra sees for gas in the transition to a more sustainable energy supply. We therefore regard the agreement with Eneco as a perfect opportunity to make a shared contribution to the energy transition. In short, we’ve turned our words into deeds.’
GasTerra is an international company trading in natural gas and gas-related services. It has over 40 years’ experience and a strong purchasing position. GasTerra serves a large share of the Dutch and European natural gas market. It operates in a customer-focused way and promotes the safe and efficient consumption of natural gas and the development of new applications for gas and energy. The group recognises the importance of the transition to a sustainable energy supply and initiates projects in that context.
About Eneco Group
The mission of Eneco Group is to ensure sustainable energy for everyone. Our vision is that the energy supply should become more sustainable, decentralised and cooperation-based. All the operating companies of Eneco Group (Eneco, Stedin, Joulz, Oxxio and Ecofys) are geared to this sustainable mission and vision.
Note for editors
For further information, please contact:
Spokesperson for Eneco
T +31 (0)6 31 04 7763
Spokesperson for GasTerra
T +31 (0)6 53 38 9943