Grid Rewards: Your Questions, Answered
From why savings and earnings with Grid Rewards change to how to maximize earnings, we explain everything you need to know.
Grid Rewards is, in our humble opinion, the smartest way we have today to really push the energy transition forward. At times there is unexpectedly more or less electricity in the power system than is needed; usually this is because there is unexpectedly more or less wind or solar production. During periods when there is an excess of renewable energy, Grid Rewards will start your charging, thereby avoiding green energy going to waste. And vice versa, when there is a shortage of energy in the system, Grid Rewards will pause your charging. Often this means less fossil fuel generation is needed!
But you still have questions! And we're here to help answer them.
Why are rewards (savings or earnings) sometimes higher or lower?
Our Energy Heroes can expect that, just like the spot prices rise and fall, savings or earnings will also rise and fall. That's because rewards are based on the activity in the energy markets and how much the system needs to be supported. When there is low activity (liquidity and volatility), rewards are lower. And, visa versa, when there is high activity rewards are higher. These market dynamics are out of Tibber’s control.
Some rules of thumb: In general, during the colder winter months, when energy prices are higher, there is more activity in the energy markets compared to other periods.
Keep an eye on our weekly price prognosis published on our website!
Why do rewards vary by region?
Just like the spot price for electricity is different between the north of Norway or Sweden compared to the south, rewards also vary from region to region or country. Some countries' grids are more strained than others and therefore have a greater need for balancing - which our Energy Heroes support with.
Why do we pause charging in the cheaper hours?
Cheaper hours are when Smart Charging plans to charge, but if there is a shortage of energy in the grid at that moment, we are able to support the grid by pausing charging. You will still get the original cheaper spot price even though charging is moved to a higher spot-priced hour (when there is more renewable energy available). On top of this, you will get rewarded as a thank you for supporting the grid and accelerating the energy transition.
Why is flexibility valuable for the power system and how is it traded?
The power system always needs to be balanced between production and consumption in order to work. The ability to increase or decrease either production or consumption units, is key in order to help achieve this. This is facilitated on multiple different market places that Tibber is gradually becoming more and more active in with the Grid Rewards program.
