insights
What is baseload and how should it be procured?
Baseload is the foundation of industrial power procurement. The volume a plant consumes steadily across time, seasons, and production swings can usually be hedged earlier and under better conditions. Companies that do not actively procure baseload pay spot prices for predictable volumes.
Baseload is the continuous, steady electricity consumption of a site: the volume that is drawn around the clock and remains stable across the year.
Baseload vs. peak load
| Baseload | Mid-load | Peak load | |
| Characteristic | Constant, 24/7 | Variable, day-dependent | Short, high peaks |
| Example | Cooling, lighting, continuous conveyors | Main-shift machine operation | Start-up currents, peak production |
| Procurement product | Baseload futures, annual bands | Monthly or quarterly products | Spot market, intraday |
| Cost | Tends to be lower because it is predictable | Medium | Tends to be expensive |
Why baseload matters for procurement strategy
For industrial power consumers with high baseload - paper mills, aluminium production, chemical base-material production - baseload creates the largest procurement advantages:
- Annual band contracts, such as EEX baseload year futures, can be bought far in advance at fixed prices.
- Stable consumption gives suppliers planning certainty, which can improve conditions.
- The German §19 StromNEV band-load privilege can significantly reduce grid fees for companies with more than 7,000 annual full-load hours, roughly 80 percent utilisation.
Annual full-load hours as a metric
Annual full-load hours = annual energy consumption (kWh) / maximum power demand (kW)
Example: a company consumes 10 GWh per year and has a peak load of 1,500 kW:
- Annual full-load hours = 10,000,000 kWh / 1,500 kW = 6,667 h/year
Above 7,000 h/year, a company may typically qualify for the §19 band-load privilege.
How Meteoric procures baseload
Meteoric procures baseload systematically across several time horizons:
| Horizon | Product | Advantage |
|---|---|---|
| 1-4 years ahead | EEX year futures (baseload) | Price stability, best conditions in low-price phases |
| 1 month before delivery begins | Quarter or month futures | Fine-tuning against the current market situation |
| 1 week or day before delivery | Week-ahead / day-ahead | Residual volumes, flexibility |
| Same day | Intraday market | Balancing deviations |
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