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→Chapter 4 Energy Suppliers
=Chapter 2 Public Key Infrastructure=
=====General=====
While until 1st of April 2024 most communications between energy market participants (roles) were relying on automatically processed [https://de.wikipedia.org/wiki/EDIFACT EDIFACT] messages in email, this is changed to a [https://www.edi-energy.de/index.php?id=38&tx_bdew_bdew%5Buid%5D=1608&tx_bdew_bdew%5Baction%5D=download&tx_bdew_bdew%5Bcontroller%5D=Dokument&cHash=5fbee16dcbd284d5f9899875d50353de machine-to-machine communication via webservices], using [[wikipedia:AS4|AS4]] encrypted payloads. The [https://www.edi-energy.de/index.php?id=38&tx_bdew_bdew%5Buid%5D=1606&tx_bdew_bdew%5Baction%5D=download&tx_bdew_bdew%5Bcontroller%5D=Dokument&cHash=6b7d02fa38030119e628544f92fcdc07 requirements] for the XML encryption / signing public key infrastructure (PKI) leans on Diffie-Hellman key exchange procedures. The keys algorithms themselves however can be based on [https://www.bsi.bund.de/SharedDocs/Downloads/DE/BSI/Publikationen/TechnischeRichtlinien/TR02102/BSI-TR-02102.pdf?__blob=publicationFile&v=9 anything] commonly accepted like: RSA, Diffie-Hellman, DLIES or Elliptic-Curve.
=====Keygen and Distribution=====
In theory every market participant is obliged to create their own key-pair for each role in the EDI@Energy framework. Then the public key needs to be signed by an officially certified CA. Officially certified CAs in this case are IT service providers, registered with the National Energy Grid Agency (BNetzA) and do include like Arvato, Telesec and Deutsche Telekom. The signed public key must be made available in a central directory operated by the BDEW, an energy industry standardization organization. It turns out, the challenge to generate key pairs in a secure fashion is overwhelming most IT organizations in small and medium sized utilities companies. The challenges arising from installing and maintaining trust-centre grade “circle of trust” procedures including the necessary escrow mechanisms, keeping employees from stealing keys and passwords, are substantial. Some larger organizations are known to have the resources and procedures in place, most smaller companies seem to ignore the risks and have their admins generating X.509 keys with ssh-keygen on their Linux machines and some totally rely on the service offerings of the CAs. In the case of some IT-guy made the key pair, there is a substantial risk, this pair will sooner or later be compromised. Additionally relying on a CA service provider to generate, distribute and maintain thousands of key-pairs for smaller organizations creates a single target, which if compromised, will void the security of the whole PKI at least for a while.
=====Payload Encryption vs. Transport encryption=====
The National Institute for IT Security (BSI) emphasizes two alternative AS4 compatible approaches: PKI encrypted payloads with electronic signatures and transport based (TLS 1.2) encryption. It is not clear from the [https://www.bsi.bund.de/DE/Themen/Unternehmen-und-Organisationen/Standards-und-Zertifizierung/Technische-Richtlinien/TR-nach-Thema-sortiert/tr02102/tr02102_node.html requirements specification] which one should be used when. But the initial thinking probably was to go for the payload encryption in the first place and to fall back to TLS, when the procedures implemented proved technically unreliable ot too complicated for the market participants. As this is currently under implementation by a multitude of software vendors for energy market communication products at the point of this writing (March/2024), no statement can be made on the initial success and use of payload encryption.
=Chapter 3 Grid Operators=
=====Maintaining Stability=====[[File:TransmissionGridOperatorsGER.png|thumb|Transmission Systems (Grid) Operators]]Electricity grid operators play a crucial role in ensuring the reliable and efficient functioning of electricity grids. Their primary purpose is to manage the flow of electricity across the grid, maintain grid stability, and ensure that supply meets demand in real-time. Grid operators in germany distinguish themselves into two categories: [[wikipedia:Transmission_system_operator|national transmission grid operatiors]] and local distribution grid operators. Here's a breakdown of their key responsibilities and the means they use to ensure grid stability and frequency: #Grid Management Grid operators monitor the flow of electricity through the grid and balance the supply and demand of electricity in real-time. They must ensure that enough electricity is generated to meet current demand while maintaining grid stability.#Load Balancing Grid operators must balance the load on the grid by adjusting the generation of electricity to match the fluctuating demand throughout the day. They use various tools and techniques to predict and manage load changes, such as demand response programs, energy storage systems, and grid interconnections.#Frequency Regulation Grid operators maintain the frequency of the electricity grid within a narrow range to ensure stable and reliable operation. In most power systems, the standard frequency is 50 Hz or 60 Hz. Fluctuations in frequency can cause disruptions to sensitive equipment and lead to power outages. Grid operators use frequency regulation mechanisms such as automatic generation control (AGC) and frequency response services to stabilize the grid frequency.#Grid Monitoring and Control Grid operators continuously monitor the performance of the grid using advanced control systems and monitoring devices. These systems provide real-time data on grid conditions, including voltage levels, power flows, and equipment status. By analyzing this data, operators can identify potential issues and take corrective actions to maintain grid stability.#Emergency Response Grid operators must be prepared to respond quickly to unexpected events such as equipment failures, natural disasters, or sudden changes in demand or generation. They have contingency plans in place to minimize disruptions and restore power as quickly as possible in the event of an emergency.#Grid Expansion and Maintenance Grid operators also play a role in planning and expanding the grid infrastructure to accommodate growing demand and integrate renewable energy sources. They coordinate with utilities, regulators, and other stakeholders to invest in new transmission lines, substations, and other infrastructure projects. Overall, electricity grid operators are essential for ensuring the reliable and secure operation of electricity grids. Through careful monitoring, control, and coordination, they help maintain grid stability and ensure that electricity is delivered safely and efficiently to consumers. =====Day Ahead and Merit Order=====In Germany, the electricity market operates using a "day-ahead" scheduling system and a "merit order" mechanism to determine the dispatch of power plants and the pricing of electricity: #[[File:ESS Schedule.png|thumb|ESS Schedule]]Day-Ahead Scheduling <br />The day-ahead scheduling system allows market participants, including generators, retailers, and traders, to submit their electricity supply and demand forecasts for the next day. <br />Market participants submit bids indicating the quantity of electricity they are willing to buy or sell at various price levels. Based on these bids, the market operator determines the optimal schedule for electricity generation and consumption to meet forecasted demand while minimizing costs. The day-ahead market clears once a day, typically in the evening, and establishes the prices and quantities of electricity for the following day. The system and protocols “ESS” (ENTSO-E Scheduling System) are described tin this [https://www.50hertz.com/Portals/1/Dokumente/Vertragspartner/Fahrplanmanagement/20211001%20FPM%20EN.pdf?ver=2021-04-07-070603-687 document].<br />#Merit Order System <br />The merit order system is used to dispatch power plants based on their marginal costs of generation. Power plants are ranked in ascending order of their marginal costs, with renewable energy sources like wind and solar typically having the lowest marginal costs (since their fuel is free), followed by nuclear, coal, gas, and finally, peaking plants. The system dispatches power plants in order of increasing marginal costs until the forecasted demand is met. The clearing price in the day-ahead market is often determined by the marginal cost of the last unit of electricity needed to meet demand, which is typically set by a gas-fired or coal-fired power plant. As a result, renewable energy sources are typically dispatched first when their output is available, helping to reduce the overall cost of electricity generation and promote the integration of renewable energy into the grid. In Germany, the combination of the day-ahead scheduling system and the merit order mechanism helps to ensure the efficient and cost-effective operation of the electricity market while integrating a growing share of renewable energy sources. It also provides transparency and market signals for investment in new generation capacity and grid infrastructure. =====Redispatch 2.0=====Redispatch 2.0 is a term used in Germany to refer to a set of regulatory changes aimed at optimizing the management of electricity grid operations, particularly in light of the increasing integration of renewable energy sources and the evolving energy landscape. It builds upon the original redispatch measures implemented to maintain grid stability but introduces several updates and enhancements to better accommodate the changing dynamics of the energy market: #Background <br />Germany, like many other countries, is transitioning its energy system towards a greater share of renewable energy sources such as wind and solar power. Renewable energy generation is often decentralized and intermittent, which poses challenges for grid stability and management.#Original Redispatch Measures <br />The original redispatch measures allowed grid operators to instruct power plants to adjust their output or generation schedules to maintain grid stability. This was primarily done to manage congestion on transmission lines and prevent overloading of the grid. Redispatch is based on [https://www.edi-energy.de/index.php?id=38&tx_bdew_bdew%5Buid%5D=1214&tx_bdew_bdew%5Baction%5D=download&tx_bdew_bdew%5Bcontroller%5D=Dokument&cHash=9999cb93e8b0b35e4ba88a8338a8fdc3 order] and [https://www.edi-energy.de/index.php?id=38&tx_bdew_bdew%5Buid%5D=2051&tx_bdew_bdew%5Baction%5D=download&tx_bdew_bdew%5Bcontroller%5D=Dokument&cHash=5ae1916661f37fea620dc2bb7b82808a acknowledgement] messages within the communication framework EDI@Energy defined between market participants.#Redispatch 2.0 Enhancements <br />Greater Flexibility: Redispatch 2.0 introduces measures to enhance the flexibility of the electricity system, allowing grid operators to better manage fluctuations in renewable energy generation. <br />Market-Based Approaches: It encourages the use of market-based mechanisms to manage congestion and grid stability, such as the use of flexible market products and incentives for demand response. Decentralization: Redispatch 2.0 recognizes the increasing decentralization of energy generation and consumption, encouraging the integration of distributed energy resources and demand-side management solutions. <br />Digitalization: The implementation of digital technologies and advanced grid monitoring systems is also a key aspect of Redispatch 2.0, enabling real-time monitoring and control of grid operations. <br />Cost Allocation: Redispatch 2.0 includes provisions for the fair allocation of costs associated with redispatch measures among market participants, ensuring that the costs are allocated efficiently and transparently. <br />#Objectives The primary objectives of Redispatch 2.0 are to improve grid stability, increase the efficiency of grid operations, and facilitate the integration of renewable energy into the electricity system. It aims to achieve these objectives while minimizing the overall cost to consumers and ensuring fair and transparent market practices. Redispatch 2.0 represents a comprehensive framework for modernizing grid management practices and adapting to the changing dynamics of the energy market in Germany. It reflects the ongoing transition towards a more sustainable and flexible energy system driven by renewable energy and digital innovation. =Chapter 4 Energy Suppliers/ Retailers=
=Chapter 5 Energy Generation / Powerplants=
=Chapter 6 Energy Import /Export in the EU and Worldwide=