The market premium model, an interaction between feed-in tariffs / PPA and the market price, is primarily intended to sensitise investment managers early on to entering a new market environment. The premium model creates the incentive for active participation in direct marketing, as there is now the opportunity to generate an additional revenue compared to the fixed feed-in tariff / PPA.
The market premium is calculated as follows:
- Market premium = Fixed feed-in tariff / PPA – Reference market value or monthly market value
The plant operator is therefore forced to market the produced electricity outside the EEG at the market price. If the generated energy is sold at a higher value than the reference market value, this results in additional income.
To map the market premium model in greenmatch, follow these three steps:
- In a first step, enter your project-specific feed-in tariff / PPA as well as the market price separately as an additional sales object.
- As soon as you have entered a sales object of the type “Feed-In-Tariff / PPA” and one of the type “Market Price” the area “Price Interaction” is shown. Klick on “Edit” to define the interaction between the Feed-In-Tariff / PPA and the market price.
- Choose “Market Premium” in the dropdown-menu.
What is Market Premium in greenmatch?
Market Premium means the following: If the “Market Price” (blue line) is below the “Feed-In-Tariff / PPA”, the difference will be compensated by the Market Premium. If the “Market Price” is above the “Feed-In-Tariff / PPA”, only the “Market Price” will be applied. The area below the lines shows the sales resulting from the “Feed-In-Tariff / PPA” (red area) and the “Market Price” (blue zone).
In greenmatch the interaction looks like this:
The following interactions are possible as well: Please note, that the lines represent the price (red: Feed-In-Tariff / PPA, blue: Market Price) and the areas the sales that were achieved.
As long as you get a Feed-In-Tariff / PPA, it is being used (even if the Market Price was higher). Only after the end date of the Feed-In-Tariff / PPA the Market Price becomes effective.
The two remuneration groups “Feed-in-Tariff / PPA” and “Market Price” are added.
The higher of the two tariffs (“Feed-in tariff / PPA” & “market price”) is used at any time.