Direct marketing plays a central role in the energy market and enables renewable energy producers to sell their electricity directly on the exchange or through contracts with customers. It is also closely linked to other concepts such as battery storage solutions, energy management systems , and virtual power plants.
What is direct marketing?
Direct marketing refers to the sale of electricity from renewable energies directly on the electricity exchange or to energy traders or suppliers, instead of claiming the legally stipulated feed-in tariff according to the Renewable Energy Sources Act (EEG). It was introduced in 2012 with the market premium to promote better market integration of renewable energies. Marketing is becoming increasingly efficient via digital platforms and virtual power plants. It also plays a role in own consumption optimization by helping to use generated electricity in an economically optimal way.
Marketing through the electricity exchange and PPAs instead of fixed compensation
Electricity generated from renewable energy sources is no longer fed into the grid at fixed rates, but is actively traded on electricity exchanges such as the EPEX Spot Intraday Market or through Power Purchase Agreements (PPAs). Direct marketers handle the trading and optimization of revenues. Modern battery storage solutions and energy management systems help efficiently balance supply and demand and also enable peak shaving (Peak Shaving).
Market price plus market premium as the value to be used
Under the market premium model, revenues consist of two main components: Operators of renewable energy facilities receive the market price, which reflects the average exchange price for their energy source. In addition, the grid operator pays a market premium, which, together with the market price, results in the statutory reference value. A marketing fee is charged for the marketing services provided by a direct marketer; the amount of this fee depends on the energy source and the size of the facility.
Additional Revenue to Hedge Against Price Volatility
Advantages
- Higher market integration of renewable energies
- Additional revenue opportunities through flexible electricity marketing
- Promotion of more stable grid control
- Combination with battery storage to increase profitability
- Integration into energy management systems to optimize energy consumption
- Participation in the control energy market (e.g. primary control energy (PRL), secondary control power (SRL), tertiary control power (TRL), control work market (RAM))
Challenges
- Volatility of the electricity market and price fluctuations
- Technical requirements for plants and control systems
- Necessity of an experienced direct marketer
- Regulatory requirements and adjustments
PPAs and Virtual Power Plants as the Next Step
With increasing digitalization and improved forecasting models, direct marketing will continue to grow in importance. Developments such as power purchase agreements (PPAs), virtual power plants, and battery storage solutions offer further opportunities for more efficient use of renewable energy.
Conclusion: A Key Role in the Energy Transition
Direct marketing is an important tool for integrating renewable energy into the market and offers both economic benefits and challenges. By combining it with modern technologies such as virtual power plants, battery storage, and energy management systems, efficiency can be further increased. The market premium model ensures stable compensation and promotes the economic viability of renewable energy.
Frequently Asked Questions (FAQ)
What is direct marketing?
Direct marketing refers to the sale of electricity generated from renewable energy sources directly on the exchange or to energy traders, rather than using the fixed feed-in tariff under the Renewable Energy Sources Act (EEG).
Since when has direct marketing been around?
Direct marketing was introduced in 2012 along with the market premium to promote the integration of renewable energy into the market.
How is direct marketing related to the market premium?
The market premium offsets the difference between the market price obtained and the statutory reference price, thereby making direct marketing economically attractive.
