Energy Insight's Batbold. O interviewed Asdin Hassen, ENERTRAG Group Lead for New Countries. 

Can you provide an overview of ENERTRAG?

ENERTRAG was founded in 1998 and has since built over 2000MW of wind energy capacity. We are active in 9 countries on 3 continents and currently employ over 1000 people. Since the very beginning we are going beyond just building wind turbines and have tried to build hybrid power plants. At our headquarter in Dauerthal, north of Berlin, we have built the first hybrid power plant in Germany. The founder of ENERTRAG originally studied nuclear science in Moscow, but determined early on that while nuclear energy is a great source of energy, only wind and solar can provide the amount of energy required to power the world, within the required timeframe, without  creating harmful emissions – and that hydrogen would play a key role in that future. So today, apart from being one of the large German Independent Power Producers, we were also a first mover in the area of green hydrogen. We operate our own electric grid since 2006, our own electrolyser since 2011 and are developing a number of integrated hydrogen projects worldwide – most notably the HYPHEN project in Namibia.

What specific issues does your company’s hybrid power plant address in comparison to other conventional power plants? What distinguishable advantages and features does it offer?

 Power plants serve a multifaceted role, providing not just electricity, but also power, heat, grid stability, and reactive power. Traditional wind and solar plants are limited to producing electricity, operating only when conditions are favorable – a characteristic termed variable generation. In contrast, our hybrid power plant offers the diverse functionalities of a conventional power plant, but uniquely powered by wind and solar energy. While standard renewable plants supply electricity during optimal weather, grid stability remains the duty of the energy system operator. This approach was crucial for developing the technology, yet as the proportion of renewable energy in the grid increases, merely supplying electricity becomes insufficient. Our hybrid power plant s teps up to this challenge, assuming responsibility for all these essential functions. We not only generate green energy but also provide heat and enhance grid stability. A key component is the electrolyser, used to produce green hydrogen. These systems efficiently utilize excess power to generate hydrogen, which serves as a versatile energy storage and conversion medium, supporting power generation when wind and solar sources are inadequate. Additionally, this hydrogen acts as a crucial raw material for the petrochemical industry, aiding in the production of kerosene, methanol, ammonia, among others. Thus, our hybrid power plant is a cornerstone for a fully decarbonized and stable energy system.

In general, what is the potential power output of a hybrid power plant? Has the plant's capacity increased since its inception? If so, what is the extent of the increase?

The scalability of the hybrid power plant concept is one of its defining strengths. Take our facility in Uckermark as an example; it has expanded progressively to now encompass over 1 gigawatt (1000 megawatts) of generation capacity. Central to this concept is the integration of wind and solar generation with flexible power consumption technologies—like electrolysis, battery storage, or power-to-heat systems—at a singular grid connection point. This integration enables us to effectively balance and optimize the power output that we deliver to the grid, showcasing the dynamic adaptability of our hybrid power plant model.

What is the installed capacity of the Uckermark facility? How many offices and households currently benefit from the supplied hybrid energy?

At present, our setup includes connecting approximately 1GW of generation capacity with a 560kW electrolyzer, a 22MW battery system, and the power-to-heat system. However, the Uckermark Hybrid Power Plant is still a work in progress. We are constantly expanding its generation capacity and integrating additional components. This ongoing development not only enhances the system’s efficiency but also provides invaluable insights into the operation of this integrated power plant, ensuring continual improvement and innovation.

Considering energy generation from wind, hydrogen, and biogas, what is the spatial footprint of production? How many hectares does it encompass?

The total area of our project is extensive, a reason why we chose Uckermark as our location. This region boasts the lowest population density in Germany, coupled with some of the best wind resources in the country. Typically, a combination of abundant sunlight, strong wind, and expansive space is the ideal trifecta for an optimal renewable energy system. This unique blend of natural resources in Uckermark makes it an exemplary site for harnessing renewable energy efficiently.

Mongolia is country rich in natural resources. While coal is a well-known resource, even more abundant are wind, sun, and land, which are crucial for an efficient hybrid power plant.

How is the generated heat and electricity distributed to consumers?

 The electricity generated is directly supplied to the  transmission system at 400kV, enabling us to power the entire system. The subsequent distribution of this electricity is managed by various distribution companies. As for the heat we produce, it is distributed through a compact district heating system via hot-water pipelines. This system is akin to the one in Ulaanbaatar, albeit on a much smaller scale, efficiently delivering heat to the needed areas.

What are the construction costs associated with building a hybrid power plant? Has your company s tarted recovering these expenses, and if so, within what timeframe?

The commercial dynamics of energy are heavily influenced by national regulations governing the energy sector. In Germany, this encompasses a mix of incentives like feed-in tariffs, private offtake agreements (PPAs), and a spot market for electricity. Our project didn’t materialize all at once; it evolved and expanded over time, making it challenging to pinpoint a singular cost figure. The capital investment primarily covers the necessary energy generators, optimally a mix of wind and solar for high-efficiency output at a lower cost, along with essential network infrastructure such as transmission lines and substations. Additionally, it includes the most suitable storage system, which could range from batteries to hydrogen production and storage. Our objective in building this system was to demonstrate the feasibility of providing clean energy at competitive prices. Thus, we operate profitably, much like a traditional power plant operator.

How did the company align its production and goals with Germany’s energy policy at the time of founding, and has this alignment changed in the current scenario?

Germany requires a substantial amount of energy. Initially, wind and solar energy were more costly than gas or coal power, but this scenario has significantly changed. Even in Germany, which is not the sunniest country, solar power now competes with coal in terms of cost effectiveness, and the same holds true for wind energy. Early in our journey, we focused on developing our hybrid power plant, along with our expertise in electrolysis and green hydrogen, recognizing these as vital components of any future energy system. Particularly since February 2022, the government has also acknowledged this reality. Thus, it can be said that reality has aligned with our forward-thinking approach.

In comparison to the average price of heat and  electricity in Germany, would you characterize the prices offered by your company as expensive or competitive?

Wind and solar power are already highly competitive. However, when integrating the components necessary to create a hybrid power plant, both the value of the energy produced and the associated costs rise. Since our operation doesn't require any fuel, the initial investment cost at the time of construction is a key determinant of the electricity's cost. In Germany, land and labor are relatively expensive, but even considering these factors, we manage to provide both power and heat at competitive prices. Moreover, an important advantage of our system is its resilience — the wind and the sun are inexhaustible resources that cannot be 'turned off', ensuring a consistent and reliable energy supply.

Is the concept of establishing hybrid power plants feasible in other countries? Could you share  international experiences and potential solutions? Specifically, in a developing country like Mongolia, how viable do you consider this approach?

Mongolia is a country rich in natural resources. While coal is a well-known resource, even more abundant are wind, sun, and land, which are crucial for an efficient hybrid power plant. Adapting this approach to Mongolia's unique context is essential — the emphasis should be equally on heat and power. This dual focus could facilitate a swift transition towards a more decarbonized energy system. The strategy need not involve replacing existing power plants; rather, it could involve augmenting them with the best available technologies, which today are wind and solar. This approach would support the growing energy needs of the populace, businesses, and industries across the nation.

 Thank you.