Given the increasing feed-in of electricity from renewable energy sources, grid operators are in rising need of a smart grid infrastructure and efficient energy storage technologies to overcome supply and demand variability challenges. Without innovative load balancing concepts as the here proposed ActiveGrid solution, it is impossible to ensure the further integration of renewables into the grid and thereby contributing to a low carbon economy. Behind that background it is obvious that recently funding schemes and regulation shift from promoting the generation of renewable energy towards battery storage and self-consumption. This trend is supporting the commercialisation of the ActiveGrid concept and the company’s strategy in general.
Deutsche Energieversorgung GmbH (DEV) provides the decisive link to leverage the synergies between renewable energy producers (residential solar PV owners) and grid operators. ActiveGrid aggregates a large number of local battery storage devices to create one virtual power facility and provides balancing power capacities to the grid. At the same time it provides battery storage owners access to the balancing power market and generate new sources of income for their solar PV-battery storage systems. As such, ActiveGrid will disrupt the retail electricity market as it facilitates flexible tailor-made electricity tariffs, direct renewables electricity trade for ActiveGrid participants, independent from their power utilities.
The objectives were to prepare the ActiveGrid market introduction thoroughly by identifying special concerns, risks, and IP issues and transforming this knowledge into a reliable and sustainable business approach. The project-specific objectives were:
• To update market analysis w.r.t. regulatory issues, cost structures and market segments
• To elaborate the business plan with more concrete market figures in the envisaged target countries as well as a dedicated market entry strategy
• To set up a risk management plan and IP strategy
• To assess and prioritise further technical developments and future needs
All business related analysis and calculations have confirmed the technical and commercial feasibility of the project. The overall conclusion is that the business idea is unchanged and DEV is eager to continue the project. To demonstrate and validate the technology in the target markets, DEV needs a client base with at least ~ 2,000 storage installations. For a foreign market replication DEV will apply for SME Instrument Phase 2 funding. This replication project will be accompanied by a new marketing campaign, whereas the ActiveGrid solution will be communicated under the name “EconamicGrid”, which is the merging of its main features being economic and dynamic.
