Interview with Michael Rieber, CEO of iAccess Energy, about the IPPs of the Future.
Michael Rieber, CEO of iAccess Energy, speaks in this interview about the necessity of hybrid power plants for the future of independent power producers (IPPs). He shares his perspectives on market changes, challenges in planning and financing, as well as the use of AI and intelligent solutions in hybrid power plants.
CAMOPO has developed a commercial optimization software for hybrid power plants that includes an integrated Energy Management System (EMS) to adapt the daily plant operation to the requirements of energy markets.
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What major changes do you see in the energy market regarding marketing and revenue opportunities, and why do you think hybrid power plants are best prepared for these changes?
Michael Rieber: Photovoltaic systems have now “grown up” and are a massive pillar of the energy transition. However, they are not base load capable. Additionally, we are increasingly required to “filter” our feed into the grid. For us, the solution lies in hybrid power plants that can store PV electricity for at least 2 hours of full load. Battery storage allows us to shift peak loads and thus size the PV park larger on the DC side than the grid connection actually allows, optimizing the available area and grid connection capacity.
This also results in economic advantages: the “stupid” PV electricity at noon is worth less and less – even for EEG plants – §51 EEG is, in my opinion, the Sword of Damocles over the PV industry.[1]
Those who do not have a storage by 2027 will be at a disadvantage. Intelligent PV electricity, which can be fed in flexibly even in the evening hours when electricity is much more valuable, opens further possibilities: in times when the sun is not shining, the existing and very expensive infrastructure (grid connection, inverters, and storage) can be used to provide frequency control or engage in intraday trading. In this way, the energy market, which is becoming increasingly demanding, can be brought under control.
What do you see as the biggest challenges in planning, financing, and operating hybrid power plants?
Michael Rieber: The biggest challenge is predicting the future: how will electricity prices develop? How does the concept for future look like? We want to work in all areas here. Regarding technical aspects the plant has become significantly more complex: the very high short-circuit currents of a battery can only be controlled with the latest components.
Additionally, many parameters and external requirements must be processed correctly: EZA controllers, frequency control, local operating parameters, and safety-relevant measurements all need to be managed. These are certainly all things that can be managed, but they are a much greater challenge than what we were used to in the past.
How do you assess the use of AI and algorithm-based intelligence in hybrid power plants, and how do you implement such solutions?
Michael Rieber: For the optimized use of the hybrid power plant, it is essential to process external factors, market data, and operating parameters in real time and make decisions quickly on how and when to store or release electricity or provide potentially frequency control.
I can’t imagine how this should be done manually. In the back testing of the AI, we saw that it really comes quite close to “perfect foresight”. Accordingly, this is a central pillar of our marketing strategy.
Previously, IPPs did not have to worry about “power plant planning” and schedules. What is your appeal to the industry regarding the operation of hybrid power plants? What is important?
Michael Rieber: Courage to rethink. In other countries, we have seen for some time that one can cope in a completely liberalized environment. With the right partners, this should work out as well.
What needs to change to make markets more attractive for hybrid power plants?
Michael Rieber: The banks should, like the IPPs, engage with the new situation. Possibly with some government backing to keep credit risks manageable for all involved.
Why did you choose DC-coupling, and what specific problems does this approach solve?
Michael Rieber: AC coupling “burns” energy due to increased losses and requires twice as much inverter capacity as actually needed. This goes against the engineer in me.
DC-DC coupled systems are more efficient and cost-effective.
But, of course, there are also disadvantages: a DC-DC bus is anything but trivial in design – especially the electrical protection and connection technology quickly reaches its limits. As a result, we had to develop our own solutions with our partners to enjoy the benefits without the drawbacks.
About iAccess:
iAccess Energy GmbH, founded in 2009 and based in Freiburg, develops, plans, and finances industrial photovoltaic power plants in Germany, France, and Japan. With over 40 experts, the company has realized over 250MWp and another 400MWp are in development. A sister company of iAccess Energy specializes in energy storage systems and holds patents for innovative battery management systems. The corporate group pursues a vision of ecological and ethically responsible management. For more information, visit the iAccess Energy website.
[1] Note from the editors: §51 EEG regulates the reduction of the payment claim for renewables in the event of negative prices.