Conventional Electricity & Heat Generation

The energy transition’s companion

What is the established goal of European energy and climate policy? A long-term, completely emission-free and secure energy supply that is affordable for consumers. However, there is still a long way to go towards realizing this vision of an energy system that is based entirely on renewable energy. Until then, conventional electricity and heat producers will play a key role in the efficient implementation of the energy transition.

Coal power plant

Find your role in the future energy mix with r2b

This clearly shows that you, as a decision maker in an energy supply company with regard to purchases of fossil electricity and heat generation, face strategic operating decisions that need to be carefully considered as part of the impending structural change.

r2b energy consulting is your ideal companion in this process: we are able to quantitatively derive self-contained market trends and scenarios using our extensive empirical databases, our finely tuned models - on the cutting edge of science - and our professional consulting team.

Our consultancy is distinguished by our individual, reliable and innovative approach. We develop custom-made databases for making the right decisions for your business model on which we base our strategies for your business success!

Economical & Affordable

Electrical energy is an important input and cost factor for industrial and production sites in Germany and Europe. An efficient electricity supply for our economy, based on competition, is therefore a key element for sustainable growth on our continent. Conventional electricity and heat power plants reliably ensure the affordability of energy supply in the context of the energy transition. .

With the continued expansion of renewable energy, the requirements for the economic operation of conventional power plants are increased significantly. In addition, investors in generating installations face uncertainties regarding the economic viability of such investments, due to the ongoing social change in energy matters.

Examine with us:

  • Your market environment in the European context (development of demand, competitors, etc.)
  • The costs and revenues of your power plant portfolio
  • Primary energy markets
  • Opportunities in different generation technologies
  • Current and future energy policy frameworks
  • Electricity price forecasts up to 2050 using our fundamental European electricity market model
  • The development of quantitative (market) scenarios for the electricity and heating market
  • The national total economic cost of energy systems

We support you in assessing energy economic issues with our in-depth models, extensive databases and the renowned experience of our consultants.

Contact us here

Reliable & Flexiblel

Conventional electricity and heat power plants are a guarantor of a safe and reliable energy supply in Europe.

We examine the reliability of the electricity supply system in Europe for you also taking into account a higher share of renewable energy, the expansion of the European grid infrastructure, and the development of the power plant park. For this, we use specially developed simulation models and indicators that we have used successfully in extensive research projects.

We analyze and quantify potential, costs and revenues from greater flexibility in your existing generation portfolio as well as investment in new offer options. We also take particular account of the future value of flexibility and supply reliability within the framework of electricity market 2.0.

Contact us here

Examine with us the:

  • Development of national and European peak load and (regional) load structures
  • Supply of weather-dependent renewable energies (wind energy, photovoltaics, run-of-river)
  • Calculation of the security of relevant supply metrics
  • Demand on the European balancing markets
  • Reliability analysis of conventional power plants
  • Power plant-specific input profiles of generation plants and network node-specific renewables input for network expansion analysis
  • Opportunities offered through flexibility in your generation portfolio in electricity market 2.0

Energy Efficient & Environmentally Friendly

A climate-neutral energy supply is a long-term goal of European energy policy. The transition of the energy supply from today’s fossil power plants towards renewable energies represents an essential framework condition. For operators of conventional plants, this means a conversion from fossil fuels to cleaner alternatives and an increase in energy efficiency e.g. through combined heat and power.

Examine with us:

  • Development of CO2-emissions in the power generation system
  • Impact of climate and environmental legislation
  • Implementation proposals for emission reductions in your generation portfolio
  • Forecast of prices for emission allowances ('CO2-prices') in the European Emissions Trading System (EU ETS)
  • Effects of increased sector coupling (esp. heat, transport & industry) with the electricity generation sector

We analyze the new requirements of your investment portfolio for you, taking account of differing circumstances in relation to climate policy across political borders. Take advantage of our know-how to benefit from the opportunities of this structural change in the long term.

Contact us here

r2b as experts on your side

Selected Products & Services

Based on our fundamental electricity market model, we develop for you:

  • Individual forecasts and scenarios; from the composition of the future European power plant park, the development of electricity generation and fuel requirements, to CO2 emissions
  • Consistent price forecasts for wholesale and balancing markets at up to hourly and annual resolution
  • Developments of profitability indicators such as clean dark and spark spreads

Tell us about your individual company’s assumptions about the development of political frameworks, the development of fuel prices, renewables’ share targets and others. Do you also need support in developing a consistent set of assumptions? Of course, we are also available in this regard, with our diverse expertise!

Request an individual and custom-made offer

Wholesale prices and balancing market prices are not independent variables - they interact according to the rational logic of competitive markets.

We provide you with a consistent set for the development of wholesale electricity and balancing energy market prices at hourly and annual resolution –  on request up to 2050  –  taking into account the correct bidding strategy interdependencies of electricity and balancing energy markets - all from one source! For this, we use our proven and well-established fundamental European electricity market model.

Commission an electricity price prognosis

Would you like to take a look into the future? No problem! We create a semiannual standard market scenario for Germany as a ‘Best-Guess' estimation for the future development of the electricity market up to 2030. We offer, among others, a slide presentation with graphically presented results, PDF documentation with a brief description of the assumptions used, as well as detailed Excel spreadsheets.

As a result, we provide comprehensive quantitative evaluations

  • For the composition of existing power plants by fuel type
  • For the development of electricity generation by fuel type
  • For the development of CO2 emissions by fuel type
  • Base and peak price development on the wholesale market
  • Hourly wholesale prices for electricity

Request the standard market secenario

Do you require energy economics expertise in-house? We will help you establish an appropriate department in your company! Our capable consultants support you; from the processing of methodological questions, use of our fully developed tools and databases, to the transfer of know-how to your employees.

We are also happy to provide you with our electricity market model, adapted to your individual needs and requirements, and can train your staff in its use.

We look forward to helping you

Selected References

Conventional electricity & heat generation projects

Electricity market overview: Poland

Client: Energy supply company

A comprehensive outlook for Poland: for this project, we reviewed the latest developments in the Polish electricity market as well as a market scenario up to 2050. We also identified the associated uncertainties in future developments, in technical as well as in economic and political terms.

Contact head of project

Efficient regime for the development of renewable energy, the development of the 'energy-only' market and the preservation of the EU ETS

Client: RWE AG

Cooperation partner: Frontier Economics Ltd.

We examined the relationship between the EU ETS and the further expansion of renewable energy in Germany for RWE AG. From this, we calculated the necessary adjustments required to the design of the electricity market and the promotion of renewables in order to ensure the long-term operability of current market rules.

Contact head of project

Power plant park and climate protection up to 2030

Client: Umweltbundesamt

This project saw us simulate possible development paths for energy production and power plant parks up to 2030, supported by model-based scenario calculations. At the same time, we analyzed the effects of different options for the design of the market.

Contact head of project

Contribution of the electricity grid to climate protection

Client: Umweltbundesamt

We analyzed the impact of the increasing share of renewable energy in electricity generation in the German transmission grids in another project with the Umweltbundesamt, and identified the resulting adaptation and expansion needs. Our analyzes are supported by model-based simulations of various scenarios for the technology mix and the regional distribution of locations for renewable energy expansion. We carried out power-flow modeling of the German and European power grids, in order to determine the need for expansion and the costs to the transmission network.

Contact head of project

Prerequisites for the optimal integration of renewable energy into the electricity supply system

Client: Federal Ministry for Economic Affairs and Technology (BMWi)

We compared the different expansion dynamics of renewable energies in Germany up to 2020, as part of this project. (Examining scenarios in which there is a renewables share of between 25% and 30% of gross electricity consumption). We took account of the impact on the entire German and European electricity generation park, as well as the security of the network and supplies. We quantitatively assessed the development of total system costs and the resulting electricity prices.

Contact head of project