{"id":21776,"date":"2026-07-16T11:00:00","date_gmt":"2026-07-16T10:00:00","guid":{"rendered":"https:\/\/giconmes.es\/the-steam-boiler-that-charges-for-shutting-down-and-for-starting-up\/"},"modified":"2026-07-22T09:55:05","modified_gmt":"2026-07-22T08:55:05","slug":"the-steam-boiler-that-charges-for-shutting-down-and-for-starting-up","status":"publish","type":"post","link":"https:\/\/giconmes.es\/en\/the-steam-boiler-that-charges-for-shutting-down-and-for-starting-up\/","title":{"rendered":"The steam boiler that charges for shutting down (and for starting up)"},"content":{"rendered":"\n<p>An <strong>electric steam boiler<\/strong> is not just a piece of process equipment\u2014it is a flexibility asset connected to the grid. In Spain, an industrial supply point capable of offering at least 1 MW of manageable power\u2014either on its own or aggregated with other loads\u2014can <strong>participate in the balancing markets<\/strong> and <strong>earn revenue for availability and for active energy<\/strong>. <\/p>\n\n<p>Below that threshold, there is no direct access to the market, but there is still value: the inherent flexibility (shifting consumption to off-peak hours) is available to any electric boiler without any special authorization. The orders of magnitude handled by Energy Pool, an aggregator with which Giconmes Ib\u00e9rica collaborates, are around <strong>247\u2013249 k\u20ac\/MW\/year in SRAD<\/strong>, \u2248 <strong>410 k\u20ac\/MW\/year of band capacity in aFRR plus \u2248 108 k\u20ac\/MW\/year of activated energy<\/strong>, and \u2248 <strong>59 k\u20ac\/MW\/year of energy in mFRR ( <\/strong>assuming year-round availability; figures are approximate). <\/p>\n\n<p>The payment is made by the system operator, which settles with the authorized aggregator; the aggregator then<strong> distributes the revenue to <\/strong>the industry according to the contract. And <strong>payment is primarily based on availability<\/strong>, not on the number of times the service is activated. These revenues are in addition to the operational savings from replacing gas with electricity and substantially alter the business case for steam electrification.  <\/p>\n\n<h2 class=\"wp-block-heading\">From Passive to Active Network User<\/h2>\n\n<p><a href=\"https:\/\/giconmes.es\/en\/additional-revenues-with-electric-steam-boilers-introduction-to-implicit-and-explicit-electric-flexibility\/\">In 2024, we published an introduction to implicit and explicit electrical flexibility as applied to electric boilers<\/a>. Two years later, the landscape has changed: the peninsular power system has increased its need for fast-responding reserves, the Active Demand Response Service (SRAD) is now auctioned off every six months, and the industry now has real-world price benchmarks on which to build a business case. <\/p>\n\n<p>The reason an electric steam boiler fits so well into these systems is purely <strong>physical<\/strong>. It is a high-power electrical load, precisely controllable via SSR modulation, capable of switching from full load to reduced load\u2014or from zero to full load\u2014in seconds, without start-up cycles, without purge cycles, and without the thermal constraints of a burner. And, above all, it is a load whose output <strong>\u2014steam\u2014<\/strong>can <strong>be partially decoupled from instantaneous electricity consumption through thermal inertia, storage, and an appropriate modular configuration<\/strong>.  <\/p>\n\n<h2 class=\"wp-block-heading\">The three key markets for an electric boiler<\/h2>\n\n<table>\n  <thead>\n    <tr>\n      <th style=\"color: white\">Market<\/th>\n      <th style=\"color: white\">Concept<\/th>\n      <th style=\"color: white\">Estimated Compensation<\/th>\n    <\/tr>\n  <\/thead>\n  <tbody>\n    <tr>\n      <td>SRAD (Active Demand Response)<\/td>\n      <td>Availability \/ Capacity<\/td>\n      <td>247 k\u20ac\/MW\/year (2025) \u00b7 249 k\u20ac\/MW\/year (2026)<\/td>\n    <\/tr>\n    <tr>\n      <td><\/td>\n      <td>Active Energy<\/td>\n      <td>Residual<\/td>\n    <\/tr>\n    <tr>\n      <td>aFRR (secondary reserve), 2025 data<\/td>\n      <td>Availability \/ Band<\/td>\n      <td>46.9 \u20ac\/MW\/h \u2248 410 k\u20ac\/MW\/year*<\/td>\n    <\/tr>\n    <tr>\n      <td><\/td>\n      <td>Active energy<\/td>\n      <td>12.4 \u20ac\/MW\/h \u2248 108 k\u20ac\/MW\/year*<\/td>\n    <\/tr>\n    <tr>\n      <td>mFRR (tertiary reserve), 2025 data<\/td>\n      <td>Availability \/ Capacity<\/td>\n      <td>Uncompensated<\/td>\n    <\/tr>\n    <tr>\n      <td><\/td>\n      <td>Active power<\/td>\n      <td>\u2248 59 k\u20ac\/MW\/year<\/td>\n    <\/tr>\n  <\/tbody>\n<\/table>\n\n<p>* Assumption of year-round availability. Figures provided by Energy Pool for preliminary reference purposes only; they do not constitute a revenue forecast or a commitment to payment. <\/p>\n\n<p>Three key points are essential for correctly interpreting this table:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>The <strong>aFRR<\/strong> values flexibility in both directions\u2014upward and downward. In other words, it compensates for both the ability to reduce consumption and the ability to increase it. For an electric boiler that does not operate continuously at full load, this opens up a revenue stream that other mechanisms do not offer.  <\/li>\n\n\n\n<li>The <strong>SRAD<\/strong> is designed to reduce consumption. It is activated on an ad hoc basis, with a maximum duration of two hours, a limit of one activation per day per supplier, and a minimum advance notice of 12.5 minutes. Its price is set by auction and varies by period: in 2026, the marginal availability price was awarded at 65 \u20ac\/MW-hour for the first half of the year and at 42.62 \u20ac\/MW-hour for the second half. The actual remuneration therefore depends on the outcome of each auction.   <\/li>\n\n\n\n<li>The <strong>mFRR<\/strong> does not pay for availability, only for the energy that is actually activated. It is a supplement, not the basis of a business case. <\/li>\n<\/ul>\n\n<p>The suitability of one mechanism or another depends on the specific configuration of the facility and the operational constraints of the industrial process. There is no one-size-fits-all answer; rather, a technical analysis is required. <\/p>\n\n<h2 class=\"wp-block-heading\">What Makes a Boiler \u201cMarket-Ready\u201d?<\/h2>\n\n<p>Here\u2019s the key point that, in our experience, makes the difference between a project that can capitalize on its flexibility and one that cannot: <strong>flexibility is designed in from the start; it\u2019s not added later<\/strong>.<\/p>\n\n<p>The factors that determine the suitability of a facility are:<\/p>\n\n<ul class=\"wp-block-list\">\n<li><strong>Modular configuration<\/strong>. Three NGV-60180 generators operating in parallel do not equal a single unit with the same total power output. Modularity allows for well-defined power tiers, maintains steam supply during activation, and preserves redundancy during maintenance. It is also the standard argument in favor of phased scalability.   <\/li>\n\n\n\n<li><strong>True modulating control<\/strong>. SSR control allows for continuous tracking of a power setpoint, rather than in abrupt steps. This is a necessary condition for tracking the master regulator\u2019s signal in aFRR.  <\/li>\n\n\n\n<li><strong>Design margin<\/strong>. A generator that operates continuously at the limit of its capacity lacks upward flexibility and does not regulate pressure effectively. <\/li>\n\n\n\n<li><strong>Sizing with a margin<\/strong> \u2014operating at around 40\u201360% of nominal capacity\u2014does not entail additional costs: it is the condition that enables fine-tuning and, with it, market access.<\/li>\n\n\n\n<li><strong>Thermal decoupling<\/strong>. Storage tanks, condensate recovery, and, where applicable, thermal storage ensure that a temporary reduction in electricity consumption does not result in a loss of steam for the process. This mechanism makes flexibility transparent to production.  <\/li>\n\n\n\n<li><strong>Communication and Measurement<\/strong>. Our equipment is controlled by a Siemens S7-1200 PLC and can be integrated via a junction box that routes the relevant signals to the customer\u2019s PLC or the aggregator platform. Without real-time measurement and verifiable automatic control, commissioning is not possible.  <\/li>\n<\/ul>\n\n<h2 class=\"wp-block-heading\">The Role of the Aggregator<\/h2>\n\n<p>Participation in balancing markets requires a <strong>process of authorization<\/strong> as <strong>a balancing service provider<\/strong> and, in practice, is channeled through an <strong>aggregator<\/strong> or a <strong>retailer<\/strong> operating in the market. It is the aggregator that provides the software\/hardware platform that translates the system operator\u2019s signal into a command regarding the asset, manages the bids, and handles settlement. <\/p>\n\n<p><strong>Giconmes Ib\u00e9rica<\/strong> is collaborating with <a href=\"https:\/\/energy-pool.com\/es\" target=\"_blank\" rel=\"noreferrer noopener\">Energy Pool<\/a>, an aggregator that regularly works with manufacturers and integrators of various flexibility technologies\u2014BESS, thermal energy storage (TESS), and electric boilers, among others. The collaboration plan consists of two phases: first, a feasibility study on the participation of the boiler and the supply point in the various markets; second, the actual operation of the asset through Energy Pool\u2019s platform. <\/p>\n\n<h2 class=\"wp-block-heading\">Who pays, and how does that money get to my company?<\/h2>\n\n<p>This is the question that matters. In practice, the answer is as follows. <\/p>\n\n<ul class=\"wp-block-list\">\n<li><strong>Who pays:<\/strong> the system operator. Red El\u00e9ctrica compensates for balancing services at the expense of the electric power system. This is neither a subsidy nor a grant: it is the purchase of a service\u2014power availability\u2014that until now was provided almost exclusively by power plants.  <\/li>\n\n\n\n<li><strong>Who it pays<\/strong>: the authorized supplier. The system operator does not settle accounts with each factory individually. It settles accounts with the authorized balancing service provider, which, in the case of industrial demand, is the aggregator or the retailer. That entity is the one that bids in the auctions, is accountable to the operator, and receives payment.   <\/li>\n\n\n\n<li><strong>How it reaches the industry<\/strong>: through a contract with the aggregator. The aggregator shares the revenue generated with the client, under the terms agreed upon. That revenue-sharing arrangement\u2014including the percentage, guaranteed minimum, and handling of penalties for failure to activate service\u2014is the key point that must be negotiated in detail, and it\u2019s best to do so before signing. Payment is made either as a periodic payment from the aggregator or as a credit on the electricity bill, depending on the contractual arrangement.   <\/li>\n<\/ul>\n\n<p>Key point: Payment is based on availability, not on actual operation. In SRAD and the aFRR band, the bulk of the compensation consists <strong>of availability payments<\/strong>. Payment is made for the commitment to respond, regardless of whether activation actually occurs. In 2026, the SRAD was activated only once. In both cases, the energy activated represents secondary revenue.    <\/p>\n\n<h2 class=\"wp-block-heading\">The Complete Tour, Step by Step<\/h2>\n\n<ol class=\"wp-block-list\">\n<li><strong>Feasibility study<\/strong>. Using the consumption curve for the supply point and the constraints of the steam process, the aggregator determines how much power can actually be offered and in which market. At no cost to the customer.  <\/li>\n\n\n\n<li><strong>Asset design<\/strong>. This is where Giconmes comes in: modular configuration, modulating control, design margin, and sufficient thermal storage to ensure that the system does not need to be activated. If the boiler is already installed and was not designed according to these criteria, the available margin will be smaller.  <\/li>\n\n\n\n<li><strong>Commissioning<\/strong>. Installation of the aggregator platform, real-time telemetry, integration with the boiler\u2019s PLC, and successful completion of the corresponding tests conducted by the system operator. <\/li>\n\n\n\n<li><strong>Bids and Award<\/strong>. The aggregator submits bids in the corresponding auction. If the bid is awarded, the availability commitment remains in effect for the contracted period.  <\/li>\n\n\n\n<li><strong>Operation<\/strong>. When the system operator requires it, the signal is sent to the aggregator platform, which automatically adjusts the boiler setpoint. The electrical power decreases (or increases). The process continues to receive steam due to inertia and the accumulated steam supply.   <\/li>\n\n\n\n<li><strong>Settlement<\/strong>. The system operator settles with the aggregator; the aggregator settles with the industry in accordance with the contract. <\/li>\n<\/ol>\n\n<h2 class=\"wp-block-heading\">A specific example<\/h2>\n\n<p>A <strong>food processing plant<\/strong> is replacing a 2 t\/h gas-fired boiler with a <strong>1.5 MW<\/strong> <strong>electric solution <\/strong>in a modular configuration, featuring steam storage and condensate recovery. The process is variable and rarely requires all modules to operate at full load simultaneously. <\/p>\n\n<p>The installed capacity is <strong>1.5 MW<\/strong>. The capacity that can be committed to the system operator\u2014the amount the plant can guarantee it will reduce when requested, without halting production\u2014is lower: let\u2019s assume<strong> 1 MW<\/strong>. <strong>That is the figure on which availability is billed<\/strong>, not the installed or contracted capacity.<br\/>With properly sized storage, an SRAD activation (maximum two hours, with 12.5 minutes\u2019 notice) is absorbed without production noticing anything: <strong>steam continues to flow from the storage tank while electrical power drops<\/strong>. <\/p>\n\n<p>What if my system doesn&#8217;t reach one megawatt? This is the case for most systems in the NGV line. There are two options here:  <\/p>\n\n<ul class=\"wp-block-list\">\n<li><strong>Built-in flexibility<\/strong>, available from day one and requiring no setup. The control system shifts steam generation and thermal storage charging to off-peak hours. There\u2019s no third party to pay\u2014the benefit is a lower electricity bill. Any electric boiler, regardless of capacity, can do this.   <\/li>\n\n\n\n<li><strong>Aggregation<\/strong>. The 1 MW threshold refers to supply capacity, which can be achieved by combining the boiler with other manageable loads at the plant itself (industrial cooling, compressors, pumps, batteries) or by aggregating with other plants through the same aggregator. A 400-kW boiler is not a market project on its own; however, it can be part of a flexibility portfolio.  <\/li>\n<\/ul>\n\n<p>Hence the conclusion we should take to heart: you aren\u2019t charged for having a 1 MW boiler; <strong>you\u2019re charged for the power you can reliably commit to the system operator<\/strong>. And that commitable power is, almost always, a design decision. <\/p>\n\n<h2 class=\"wp-block-heading\">Why This Changes the Business Case<\/h2>\n\n<p>When evaluating the replacement of a gas boiler with an electric one, the conventional analysis compares <strong>CAPEX<\/strong>, <strong>the price of fuel versus the price of electricity<\/strong>, and<strong> the avoided cost of emissions allowances<\/strong>. In many cases, that analysis is accurate. <\/p>\n\n<p>Incorporating revenue from flexibility markets changes the equation. For a 1 MW-electric boiler, <strong>flexibility revenue<\/strong> on the order of the figures mentioned above can represent <strong>a very significant fraction of the annual operating cost<\/strong>\u2014and can do so in a way that is compatible with other financing channels: subsidies for industrial decarbonization and Energy Savings Certificates (CAE) under Royal Decree 36\/2023. <\/p>\n\n<p>There is only one recommendation, and it is the same one our partner has conveyed to us: <strong>to incorporate a strategy for participating in flexibility markets from the project\u2019s earliest stages<\/strong>. Doing so allows us to size and certify the asset for the most favorable market and to identify the flexibility inherent in the industrial process without compromising production. Attempting to add it to a facility that has already been built and optimized to the minimum usually means leaving most of the value on the table.  <\/p>\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n<h3 class=\"wp-block-heading\">Who pays me for my boiler&#8217;s flexibility?<\/h3>\n\n<p>The system operator (Red El\u00e9ctrica) compensates for the balancing service, but settles the payment with the authorized provider\u2014the aggregator or the retailer\u2014which in turn distributes the revenue to the industry as agreed in the contract. Payment may take the form of a periodic payment or a credit on the electricity bill. <\/p>\n\n<h3 class=\"wp-block-heading\">Do I get paid even if they never call me to reduce my usage?<\/h3>\n\n<p>Yes. In SRAD and the aFRR band, the bulk of the compensation comes from availability payments: you are paid for being on call, not for the number of activations. The energy supplied is paid for separately and usually represents a smaller portion of income.  <\/p>\n\n<h3 class=\"wp-block-heading\">What is the minimum power output I need to participate?<\/h3>\n\n<p>1 MW of supply capacity, either individually or aggregated with other consumers through a retailer or aggregator. A facility with lower capacity may participate if it is aggregated with others. <\/p>\n\n<h3 class=\"wp-block-heading\">Will participating in the flexibility program disrupt my production?<\/h3>\n\n<p>It shouldn&#8217;t. A well-designed facility absorbs the load through thermal inertia, storage, and modularity. The flexibility offered to the market is the amount that the process can accommodate without any impact; identifying this flexibility is precisely the purpose of the preliminary feasibility study.  <\/p>\n\n<h3 class=\"wp-block-heading\">Can an electric boiler provide secondary reserve (aFRR)?<\/h3>\n\n<p>Yes. Electric boilers are well suited to aFRR requirements due to their automatic response capability and modulating control. Certification requires passing the relevant tests and having the appropriate measurement and control infrastructure in place.  <\/p>\n\n<h3 class=\"wp-block-heading\">Is the income listed guaranteed?<\/h3>\n\n<p>No. These are orders of magnitude based on 2025 data and the 2026 auctions, and are useful as a preliminary reference. Availability prices are set at auction and vary from period to period. Any rigorous assessment requires an analysis of the site\u2019s technical data.   <\/p>\n\n<h3 class=\"wp-block-heading\">What do I need to get started?<\/h3>\n\n<p>The consumption curve at the supply point, the contracted power, the characteristics of the steam process, and its operating margins. Using this data, an initial assessment can be made of the available flexibility and the most suitable market. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>An electric steam boiler is not just a piece of process equipment\u2014it is a flexibility asset connected to the grid. In Spain, an industrial supply point capable of offering at least 1 MW of manageable power\u2014either on its own or aggregated with other loads\u2014can participate in the balancing markets and earn revenue for availability and [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":21630,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[35,1],"tags":[],"class_list":["post-21776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry","category-sin-categorizar"],"acf":[],"_links":{"self":[{"href":"https:\/\/giconmes.es\/en\/wp-json\/wp\/v2\/posts\/21776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/giconmes.es\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/giconmes.es\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/giconmes.es\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/giconmes.es\/en\/wp-json\/wp\/v2\/comments?post=21776"}],"version-history":[{"count":1,"href":"https:\/\/giconmes.es\/en\/wp-json\/wp\/v2\/posts\/21776\/revisions"}],"predecessor-version":[{"id":21777,"href":"https:\/\/giconmes.es\/en\/wp-json\/wp\/v2\/posts\/21776\/revisions\/21777"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/giconmes.es\/en\/wp-json\/wp\/v2\/media\/21630"}],"wp:attachment":[{"href":"https:\/\/giconmes.es\/en\/wp-json\/wp\/v2\/media?parent=21776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/giconmes.es\/en\/wp-json\/wp\/v2\/categories?post=21776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/giconmes.es\/en\/wp-json\/wp\/v2\/tags?post=21776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}