This article is based on the Making money with flexibility podcast episode.
In this podcast interview, Chloe speaks with Tri Nguyen from Wärtsilä Energy about their latest report on monetising flexibility in power systems. They discuss how the energy landscape is shifting from traditional baseload operations to flexible power generation that can respond quickly to renewable energy fluctuations.
Tri explains five key revenue streams for flexible assets: energy markets, bilateral contracts, ancillary services, capacity mechanisms, and financial markets. He introduces the concept of 'revenue stacking' - combining multiple revenue streams to maximise profitability.
The conversation highlights real-world examples from the Philippines and South Australia, highlighting data-backed proof points of how flexible engine power plants can achieve higher operating profits through fast start times and rapid ramping capabilities.
The discussion concludes with practical guidance for utilities and IPPs to assess market readiness for flexibility monetisation, emphasising that in volatile markets with high renewable penetration, flexible assets consistently outperform traditional power generation technologies.
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