ENERGY

MANAGEMENT

ANDFLEXIBILITYINMOBILENETWORKS

v1.0

ENERGYMANAGEMENT

ANDFLEXIBILITYINMOBILENETWORKS

byNGMNAlliance

Version:

1.0

Date:

24July2025

DocumentType:

FinalDeliverable

ConfidentialityClass:

Public

Programme:

GreenFutureNetworks

Approvedby/Date:

NGMNAllianceBoard/14July2025

ForPublicdocuments(P):?2025NextGenerationMobileNetworksAlliancee.V.Allrightsreserved.NopartofthisdocumentmaybereproducedortransmittedinanyformorbyanymeanswithoutpriorwrittenpermissionfromNGMNAlliancee.V.

TheinformationcontainedinthisdocumentrepresentsthecurrentviewheldbyNGMNAlliancee.V.ontheissuesdiscussedasofthedateofpublication.Thisdocumentisprovided“asis”withnowarrantieswhatsoeverincludinganywarrantyofmerchantability,non-infringement,orfitnessforanyparticularpurpose.Allliability(includingliabilityforinfringementofanypropertyrights)relatingtotheuseofinformationinthisdocumentisdisclaimed.Nolicense,expressorimplied,toanyintellectualpropertyrightsaregrantedherein.Thisdocumentisdistributedforinformationalpurposesonlyandissubjecttochangewithoutnotice.Readersshouldnotdesignproductsbasedonthisdocument.

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3

09

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TABLEOFCONTENTS

EXECUTIVESUMMARY 3

01INTRODUCTION 6

02CHALLENGESAND

OPPORTUNITIES

FROMRENEWABLESAND

AFLEXIBLEENERGYMARKET 7

03OVERVIEWOFENERGY

MANAGEMENTAND

THEENERGYMARKET 8

3.1EnergyMarket 10

3.1.1EnergyFlexibilityMarket

Potential 10

3.1.2ActorsandRolesoftheEnergy

FlexibilityMarket 12

3.1.3EnergyMarketTypes

andFlexibilityServiceTypes 13

EnergyMarketTypes 13

FlexibilityServiceTypes 14

VirtualPowerPlant 16

3.1.4NewValue-AddedServices

forMobileNetworkOperators 17

04CONSIDERATIONSFOR

ADOPTINGENERGY

MANAGEMENTSTRATEGIES 19

4.1Enablersandpre-requisites

forEnergyManagement

Strategies 19

4.2ForecastingConsiderations 20

4.2.1ForecastingSiteEnergy

Consumption 21

4.2.2EnergyPriceForecast 22

4.2.3ForecastingRenewableEnergy

Production 23

4.3ConsiderationsonBatteries

inEnergyManagement 24

4.4ConsiderationsontheEnergy

FlexibilityMarket 24

4.4.1ParticipatingtotheFlexible

servicesthroughEnergy

management 25

05SITE-LEVELENERGY

MANAGEMENT 26

5.1Multi-Source

EnergyManagement 27

5.2EnergyStorageManagement 28

5.2.1LimitingCarbonFootprint

andMaximisingVREUsage 29

5.2.2BatterySupplyCoordination 31

5.2.3ExcessVREControl 32

5.2.4VREGenerationand

SemiDynamicTariffs 32

5.2.5DynamicTariffs 33

06NETWORKLEVEL

ENERGYMANAGEMENT 35

6.1NetworkLevelEnergy

ManagementasCooperation

ArchitecturebetweenEnergy

MarketandMobileNetworks 35

6.1.1ExemplarySolutionfor

AncillaryServices–Europe 36

6.1.2ExemplarySolutionfor

VirtualPowerPlants–China 37

6.1.4ExemplarySolution

forWholesale

Markets–Europe 39

6.2CoordinatingNetworkEnergy

ManagementandNetwork

PerformanceManagement 41

6.3.EfficientEnergyConsumption

InformationExchangeAcross

NetworkNodes 43

07BESTPRACTICES 44

08LISTOFABBREVIATIONS 46

REFERENCES 48

10LISTOFFIGURES 49

LISTOFTABLES 50

ACKNOWLEDGEMENTS 51

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EXECUTIVESUMMARY

EnergyManagementisakeyissueforoperatorsastheyseektomanagecostsandintegraterenewableenergyintotheiroperationswhilstcontinuingtomeetdemandandusers’performanceandqualityexpectations.

Inthiscontext,operatorsneedtoadopttherightenergymanagementstrategiestomanagetheenergydemandontheirbasestationsitesinthemostsustainableandcost-effectiveway.

Sofar,operatorshaveprimarilyfocusedonacquiringlowcarbonenergyfromthegridandhedgingforlongertoensureacheaperandmorestablesupplyoflowcarbonenergy.Inthispublication,NGMNpresentsenergymanagementstrategiesthattakeadvantageoftheopportunitiesfromtheenergymarketallowingoperatorstoreducetheiroperationalcostsandevencreatenewvalue-addedservicesthroughenergyflexibilityinitiatives(seeFigure1).

Thispublicationprovidesaconsolidatedviewoftheidentifiedbenefitsofeachstrategicpath,aswellastheassociatedenablersandpre-requisites.Theaimistohelpoperatorsidentifykeyconsiderationswhenmakingachoiceonenergystrategysothattherightbalancebetweensustainabilitygoals,investments,andenergycoststabilisationcanbeachieved.

Ancillaryservices

NetworkLevel

WholesaleEnergyMarket

SiteLevel

Reduceintake

ofenergy

Sellorstore

excessofenergy

Dynamicpricing

GridFirst

Reducecostsandmeetlowcarbongoals

Figure1NetworkEnergyManagementstrategicpathspresentedinthispublication.

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TheNGMNAIIiancemakesthefoIIowingrecommendationswithaviewtoadvancingthisimportantareaofworkwithintheindustryandwithindustrypartners.

PlanningfortheintegrationofVariableRenewableEnergy(VRE)

1.OperatorsshouIdconsidertheVREintegrationphaseintheircountrywhenseIectingenergymanagementstrategies.

2.StrategieswhereoperatorsreIyheaviIyonthegridtomeettheirdemandforIowcarbonenergyonIymakesenseincountrieswhichareatamoreadvancedphaseofintegratingVREintothegrid.

3.OperatorsmustthinkcarefuIIybeforeinvestingheaviIyintheirownVREgenerationincountrieswhichareaIreadyatanadvancedstageofVREintegrationintothegrid.

EnergyManagementatthesite-level

1.EnergyManagementonapersiteIeveIbasismustconsidertheenergysourcesavaiIabIe(e.g.,cIean,gridenergy,IocaIrenewabIeenergy,battery),trafficIoad,andavaiIabiIityandcostofeachenergysourceovertime.

2.OperatorswiIIneedtodeterminesuitabIeenergymanagementstrategiesinIinewiththeirstrategicgoaIs:forexampIe,minimisationofenergycostsand/orminimisationofcarbonemissions.

3.EnergyManagementmustconsiderreguIatoryrequirementsreIatedtomobiIeservicecontinuityintheeventofpoweroutages.

RoleofNetworkManagementandAI

1.NetworkManagementandautomationpoweredbyAIwiIIhaveakeyroIetopIayinenergymanagementforMNOs.

2.MNOsmustensureanydataingestedfrom3rdparties(e.g.,weatherandenergycost)isverifiedandtrustworthywithproceduresinpIacetorapidIyrecoverfromfauItydata.

3.DuetothecriticaInatureofmobiIenetworks-wherebytheyareoftendesignatedasofnationaIimportance-MNOsmustbeawareofandbeabIetodemonstratetoreguIatorsthatanyAIdeveIopedanddepIoyedtomanageenergywiIIdosowithinacceptabIeIimitsfornetworkavaiIabiIityandnetworkperformance.TheindustryshouIdstudyhowsuchtransparencycanbe(independentIy)verified.

EnergyFlexibilityandtheroleofMNOs

1.EnergymanagementsystemsshaIIbecapabIeofrapidreactiontoexternaItriggersnotinitiatedbytheeIementmanagementsystembutfromanexternaIsource.

2.On-siteenergymanagementsystems(e.g.sitecontroIIer)mustfuIfiIreguIatoryrequirementsfortheenergyflexibiIitymarket.

3.DemandresponseserviceprovidersmustcompIywithevoIvingnationaIIegisIation,whiIeMNOs,internaIsecurityguideIinesmustbefuIfiIIedbytheirserviceproviders.

4.TomaximisethepotentiaIforVariabIeRenewabIeEnergythemobiIeindustryshouIdworkwiththeenergyindustrytoachieveasuitabIestandardisationandreguIatoryenvironmentthatencouragesharmonisation.

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INTRODUCTION

TheNGMNGreenFutureNetworksProgrammedeliversleadingtelecomsindustryguidancetowardsenergyefficientoperationsandasustainableeconomy.Thispublicationoutlinesandprioritisesthevariousenergymanagementoptionsavailabletooperatorstomeettheenergydemandsfortheirnetworks.

?Chapter2introducestheevolvingenergylandscapetogetherwiththeassociatedchallengesandopportunitiesforoperators.

?Chapter3presentsapotentialenergymanagementroadmapwithstrategicintentandintroducestheenergymarket,itsactors,andservices.

?Chapter4presentspre-requisitesandenablerstohelpoperatorsimplementenergymanagementstrategiesandparticipationintheenergyflexibilitymarket.

?Chapter5presentsenergymanagementstrategiesforbasestationsitestogetherwithresultsfromtrialsinrealnetworkdeployments.

?Chapter6focusesonlarge-scalesolutionsaswellasconsideringtheinteractionsbetweenthetelecomsnetworkandtheenergymarket.

?Finally,Chapter7introducesthemostrecentkeylearningsfromNGMN’sGreenFutureNetworksProgrammeonenergymanagement,highlightingthepotentialgainsofthesolutionspresentedinthispublication.

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02CHALLENGESAND

OPPORTUNITIESFROM

RENEWABLESANDAFLEXIBLE

ENERGYMARKET

Astheenergylandscapeshiftstowardsdecentralisedrenewablesystems,telecomsoperatorsfaceuniquechallengesandopportunitiesinmanagingtheirnetworks'powerneeds.Thistransformationpresentsacomplexinterplayoftechnological,economic,andenvironmentalfactorsthatwillshapethefutureoftelecommunications.

TheprimarychallengesfacingMNOsinthisevolvingenergylandscapearethreefold.First,ensuringenergysecurityandresiliencehasbecomeincreasinglycomplex.Operatorsmustgrapplewithfluctuatingenergyavailability,continuedrelianceongridpowerandtheneedtomaintainnetworkresilienceduringenergyshortages.Thesefactorscombinedmakeitdifficulttoguaranteeastablepowersupplyforcommunicationsystems.

Secondly,economichurdlesposesignificantobstacles.Thehighcostsandlongtimeforreturnoninvestmenttomaterialiseassociatedwithdistributedrenewableenergyfacilitiesstrainoperators'budgets.Additionally,volatileenergypricesdrivenbygeopoliticaltensionscreatefinancialunpredictability.Operatorswithoutadequateenergydemandandpricingforecastingtoolsmayfaceincreasedcosts,furthercomplicatingtheireconomicoutlook.

Lastly,theintegrationofrenewableenergysourcespresentsitsownsetofchallenges.Theintermittentnatureofrenewablescomplicatesnetworkoperationsmanagement.LimitedtransmissioninfrastructureforsourcingVariableRenewableEnergy(VRE)andtheneedforincreasedinvestmentinstorageandVREgenerationaddlayersofcomplexitytothetransitiontowardssustainableenergysolutions.

Despitethesechallenges,therearesignificantopportunitiesforoperators.Sustainableenergymanagementemergesasakeyareaforinnovationandcostreduction.Byoptimisingenergyusethroughflexiblemanagementstrategies,investinginenergy-efficientnetworkingequipmentandIoTsolutions,andmaximisinglow-carbonenergyusage,operatorscanmeetCO2targetswhilepotentiallyloweringoperationalcosts.

Furthermore,thistransitionofferschancestoenhancenetworkresilienceanddriveinnovation.Strategicinvestmentsinresourcescanimproveservicequalityinthechangingenergylandscape.LeveragingAIandIoTforreal-timemonitoringandefficientenergymanagementnotonlyoptimisesoperationsbutalsoopensdoorstonewbusinessopportunitiesinenergymanagementandgridstability.

Finally,operatorshavethepotentialtoactivelyparticipateintheevolvingenergymarket.Theycandevelopenergystoragesolutionsforgridsupport,potentiallycontributeVREsupplytothegridusingavailablerealestateandoptimisenetworkpowercoststhroughsmartenergydemandtrackingandpricingstrategies.

Whiletheenergytransitionpresentssignificantchallengesfortelecomoperatorsinbalancingnetworkreliabilityandsustainability,italsooffersunprecedentedopportunitiestoinnovate,reducecosts,andcreatenewservices.

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03OVERVIEWOFENERGY

MANAGEMENTANDTHEENERGY

MARKET

NGMNhaveidentifiedthreemainstrategicpathsthatcanbeadoptedbyoperatorsforenergymanagement:

gridfirst,sitelevel,andnetworklevelstrategicpaths.

Thegridfirststrategicpathfocusesonoperators’abilitytosecurelowcarbonandrenewableenergyfromthegridfortheirnetworkinacost-effectivewayandtomanagetheircostsagainstfluctuatingenergypricing.VariousoptionsexistonthemarketforMNOstopurchaseelectricityfromsuppliers(e.g.negotiatedcontracts;PowerPurchaseAgreements(PPAs)).MNOscanalsoinvestinenergyproductionprojects.EachMNOmustmakeitsowndecisionontheoptimalapproachtosecurelowcarbonandrenewableenergyfromthegrid.

ThesitelevelstrategicpathdeliversonsiteDistributedEnergyResource(DER)managementsothatoperatorscanoptimallyusethemultiplesourcesofenergyavailableonsitetomaximisetheuseoflowcarbonandrenewableenergywhilstreducingtheenergycost.Thisstrategicpathrequiresoperatorstodeploynewinfrastructureintheformofbatterystorageand/orVREgenerationwherethereisrealestateavailableonsite.Operatorsusethebatteriestostoreoff-peaktariffenergy,togetherwithpolicies/guidelinestocarefullymanagehowthestoredenergyisusedduringpeaktariffperiodstomeetthesiteenergydemandortoimplementpeakshavingintheenergyrequirementfromthegridduringperiodsofpeaktraffic.Batterystoragecanalsohelpoperatorstoofferexcesscapacityforancillaryservicesto3rdpartyaggregators,e.g.,VirtualPowerPlants(VPPs)(seeSec

andSec6.1.2)oruseexcesscapacityforDemandResponse(DR)services(seeChapter

andChapter6.1.2)via3rdpartyaggregators.

WithinfrastructureforVREonsite,renewableenergyisgeneratedandusedthroughdistributedpowersystemsinindividualcellsitesorgroupsofsites,anditsexcessisstoredinbatteries.Thisreducesoperator’sintakeofenergyfromthegridbutdoesnoteliminateit.Dependingonlocalregulations,operatorscanalsofeedexcessgeneratedVREdirectlytothegridortoanaggregator.

Thenetworklevelmanagementstrategicpathfocusesmorespecificallyonhelpingoperatorstofullyexploittheinfrastructuretheyhavedeployedontheirbasestationsites.Infact,operatorsmayintentionallydimensiontheVREandstorageinfrastructureontheirsitebeyondwhatisneededforsiteconsumption.ThisstrategyisbasedontheagglomerationofthecapabilitiesdeployedindistributedsitessothatMNOscanbecomeviableplayersintheenergymarket.

Therefore,ifanyoperatordecidestoplaysucharole(andiflocalregulationsallow)itisapre-requisiteforoperatorstoactasaVPPorbecomeaviableenergysuppliertoaVPP.Operatorscanaggregateandsellexcessenergytothewholesalemarketorparticipateintheenergystockexchange.TheycanfurtheraggregateexcesscapacityandsellitasancillaryservicestoaTransmissionSystemOperator(TSO)oraDistributionSystemOperator(DSO)ormanagetheexcesscapacityandsellasDRservicestoTSO/DSO(seeChapter3.1.2).Networklevelmanagementstrategiesaretypicallybasedonreal-timeexchangeofdatabetweenthetelecomsandbeyond-telecomsecosystemstoallowparticipationintheenergyflexibilitymarket,atopicofgrowinginterestwithintheMNOcommunity.

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Table1summarisesthethreemainstrategicpathsforenergymanagement.Inthefollowingtable,

?‘Activeparticipation’impliestheoperatorhassomeenergygenerating/storingresourcesorhasinvestmentsinenergygeneratingresources

?‘Consumeronly’impliestheoperatoronlyconsumesenergyfromthegrid

Table1.StrategicpathsforNetworkEnergyManagement

Path

DERs

Participation

Approach

Primary

ResourceType

Strategy

Summary

Grid

First

N/A

Passive

participation

Grid

?Achievecostreductionandmanagecostvariabilitythroughnegotiatedcontracts(e.g.PPAs).

?IncreaseuseofRenewablesbysourcinglowcarbongriden

Off-site

Active

participation

VREproduction

?Investingreenpowerplants(tofurtherensuresufficientaccesstoVRE).

Site

Level

On-site

VREproduction

ReducegridintakeduringperiodsofVREproduction

Batterystorage

StoreexcessVREtoreducegridintaketoaminimum

VREproduction

Offerexcessenergyto3rdpartyaggregators

Batterystorage

?Lowercoststhroughbuynow,uselater.

?Offerexcessbatterycapacityforancillaryservices

?UsingexcessbatterycapacityforDRservices

Network

Level

VREproduction

Aggregatingexcessgeneratedenergyand

offernewenergyservicestoenergymarkets

Batterystorage

?Participateinenergymarkets

?AggregatingexcessbatterycapacityandofferingittoTSO/DSO(ancillaryservices)

?ManagingexcessbatterycapacityandofferingittoTSO/DSO(DRservices)

Intherestofthischapter,weintroducethestatusoftheenergymarket,theconceptofenergyflexibilitytogetherwiththekeyactorsandrolesoftheenergyflexibilitymarket.Inthenextchapter,furtherconsiderationisprovidedonkeyenablersrelevanttohelpoperatorsrealiseenergymanagementstrategiesandenableenergymarketparticipation.Subsequentchapterstreatthedifferentstrategiesinmoredetail.

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3.1ENERGYMARKET

Withintheenergymarket,alargevarietyofcompaniesorganisetheproduction,trading,marketing,transmissionandsupplyofelectricity.Itisvitalforanysocietytohaveanelectricitymarketthatensuressufficientavailabilityandaffordablepricesforprivate(retailmarket)andbusinesscustomers(wholesalemarket).Thisisthefieldofworkofnationalandinternationalregulatorybodies.

Asrenewableenergysourcesbecomeincreasinglyintegratedintotheenergysystem,flexibilityhasemergedasacrucialelementforensuringstabilityandsecurityofenergysupply.Energyflexibilityreferstotheabilitytoadjustpowergenerationand/ordemandinresponsetovaryingelectricityprices,marketchanges,andtransmissionanddistributionsystemconditions.MNOshaveanopportunitytoleveragetheirresources,suchasbatterystorageandconnectiontothegrid,toparticipateinflexibilitymechanisms,yieldingenvironmentalbenefitsandprovidingnewvalue-addedservices.

3.1.1EnergyFlexibilityMarketPotential

Theflexibilitymarketisexperiencingsignificantgrowth,drivenbytheincreasingintegrationofrenewableenergysources.AEuropeanUnionAgencyfortheCooperationofEnergyRegulators(ACER)reportindicatesthattheshareofRenewableEnergySources(RES)intheEuropeanenergymixisexpectedtorisedramatically[1],necessitatingflexibilitysolutionstomanagethisvariability(seeFigure2).

France

Germany一Italy

PolandBenelux

SoutheastEuropeCentralEurope

NordicsIberia

Figure2.Projectedelectricitygenerationfromintermittentrenewablesbycountryormarket[2].

The2024InternationalEnergyAgency(IEA)documentonimplementingCOP28energygoalshighlightsthesameneedforenhancedsystemflexibility,particularlythroughenergystorage[4].Additionally,factorssuchastheincreasingelectrificationofindustryandtransportarecontributingtothisdemandforstoragesolutions.

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Figure3.Installedcapacity[Gigawatts]inmainEuropeanmarketsunderacceleratedenergytransition[3].

Figure3.Installedcapacity[Gigawatts]inmainEuropeanmarketsunderacceleratedenergytransition[3].ToachievetheCOP28targetedglobalrenewableenergycapacityby2030whilemaintainingelectricitysecurity,energystorageneedstoincreasesix-fold[5].Atthesametime,asmoreintermittentsourceslikewindandsolarareintegratedintothegrid,thedemandforflexibilitybecomescriticaltoensuregridstabilityandreliability.Dependingonthetimelineperspective,thereiscurrentlyarangeofpossiblemechanismsthatfacilitatetheprovisionofflexibilityservices(seeFigure4).

Years/month

Days

Minutes

Seconds

Delivery

Capacity

Day-Ahead

Intraday

Balancing

Ancillary

mechanism

Market

market

markets

services

Figure4.GeneraltimelineofEuropeanelectricitymarkets/mechanisms

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3.1.2ActorsandRolesoftheEnergyFlexibilityMarket

Figure5.StakeholdersofanexampleEnergyFlexibilityMarket.

Figure5showsthemainstakeholdersintheenergyflexibilitymarketandhighlightsthepossiblerolesof

MNOsinthisecosystem.

?TransmissionSystemOperator(TSO):Overseesthetransmissionofelectricityfromgenerationsitestoregionaldistributionnetworks.

?RegionalDistributionSystemOperator(DSO):Managesthedistributionofelectricitywithinaregion,ensuringreliablesupplytolocalDSOs.

?LocalDSO:Managesthedistributionofelectricityatthelocallevel,connectingtoend-users.

?DistributedEnergyResources(DER)/FlexibilityOwners:Ownandoperatedistributedenergyresources,providingflexibilitytothegrid.

?Aggregators:CollectandmanageDERtoprovideflexibilityandbalancesupplyanddemand.

IntheleftsideofFigure5(1),wecanseethetraditionalenergydistributionsystemwithoutMNOsasparticipants.ThemiddleoftheFigure5(2)showstheMNOasownerofDERsatvariousTelcosites(seeTable1,activeparticipation)thusprovidingflexibilitytothegrid.IntherightsideofFigure5(3),MNOscanactasanAggregator(seeTable1,activeparticipation)collectingandmanagingitsownDERtoprovideflexibilityandbalancethegrid.1

1.Asthereisnoglobalenergymarket,theremaybedifferentdefinitionsofprocesses&rolesofactors(e.g.transmissionanddistributionnetworksareveryoftendistinguishedbydifferentvoltagenumbers)basedondifferentregulatoryassociationsandhistoricallygrowninfrastructure.

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3.1.3EnergyMarketTypesandFlexibilityServiceTypes

Theenergymarketissupposedtobalanceenergydemandandproduction.Day-aheadandintradayaretheperiodswhenforecastsaremostlikelytomatchreality.Toensureareliablesupplyofenergyevenduringshort-termimbalances,specificflexibilityserviceskeepfrequency,voltageandpowerloadwithincertainlimits.Thismakestheshort-termspotmarketandrelatedservicesanessentialtoolforbalancingtheoverallsystem.

EnergyMarketTypes

Theenergymarketreliesmainlyonalongterm–pricestable–andashortterm–flexible-component.Anyregulationthatintegratesenvironmentalsustainabilitygoalsintothemarkethastodefinespecificregulationstointegratehighlyflexible,renewableenergysourcesintothemarket.

WholesaleMarket–PPAs:

APPAoftenreferstoalong-termelectricitysupplyagreementbetweentwoparties,usuallybetweenapowerproducerandacustomer(anelectricityconsumerortrader).ThePPAdefinestheconditionsoftheagreement,suchastheamountofelectricitytobesupplied,negotiatedprices,accounting,andpenaltiesfornon-compliance.Sinceitisabilateralagreement,aPPAcantakemanyformsandisusuallytailoredtothespecificapplication.Thesetradestakeplaceoutsideofpowerexchangeswithoutintermediariesorclearinghouses.Tradingpartnersareindirectcontactwitheachotherormakeuseofabroker.PPAsmayalsohaveshorttermcomponents(day-aheadandintraday).

WholesaleMarket–Spotmarket:Withincreasingcontributionofrenewableenergiestothetotalenergymix,theenergyexchangemarketswillgainmoreimportance.Thismakestheshort-termspotpowermarketanessentialtooltobalancetheoverallsystem.AndsincetheEuropeanspotpowermarketsarecoupled,theyhelptoprovideelectricitywhereitisneededandwhenitisneeded.Cu