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Demand Respons from a business model perspective
Ruud Vrolijk Eneco Regulatory Affairs
24 November 2015
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overview
• Short introduction of Eneco
• Types of demand respons
• Business models
• Flex Project Sleeve
• Examples
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Short introduction of Eneco
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• Eneco is one of the 3 big utilities in the Netherlands. We have more than 100 years of experience with energy supply.
• Eneco is owned by more than 50 Dutch municipalities.
• Our mission: sustainable energy for everyone
• Our vision: everyone an energy supplier
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Types of Demand Respons
Price based demand respons: implicit DR • Customers reacting to Time-of-Use prices (well known in advance) • ToU prices are used for many years • Network tariffs or supply prices • New: dynamic prices based on power exchange (APX)
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Incentive based demand respons: explicit DR • Reward the customer for shifting his demand • On request or automatically • Discussion on the role of aggregators • Baseline issues DR is also referred to as “flexibility” or “demand side participation”
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Possible business models
• Balancing à TSO • Spot market à BRP (or TSO) • Smart grids à DSO • Capacity markets à supplier / TSO (not in NL)
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Flex Project Sleeve
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Business Case
Deal
Technical Feasibility
QuickScan
Project Storage
Project CHP
Rejected Projects
Heat Pumps
Project Incharge
Project Agro
Project Wind
Project CHP
Project Agro
Project Storage
Rejected Projects
conges:on management
Project Agro
Project Incharge
Project Incharge Project Incharge
Project CHP Project Wind
Project X
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Example - balancing costs model
Incharge (for electric vehicles) – App for Tesla drivers (controls the charging of the battery)
– InCharge offers customers the possibility to match the charging demand of their EV with the supply of (sustainable) electricity at the most favourable moment.
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– driver indicates when the car needs to be charged and to what extent, and Incharge automatically selects the best time to charge the battery at the lowest price.
– Income for this business model is based on reduced balancing costs.
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Example - smart grids model
Couperus smart grid (started as pilot in 2012) – Coordination of 300 heat pumps in apartment building “Couperus”
– Use the flexibility of heat pumps to reduce peak demand and balancing costs
– Automatically change the switching moments of the heat pumps without loss of comfort for the inhabitants of the building
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– In 2014 we introduced dynamic pricing: inhabitants react not only on price but they are also motivated to provide a contribution to sustainability
– Currently the inhabitants are asked to change the moment they use their washing machine or dishwasser (no financial incentive)
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Example - day ahead market
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CHP
Agro Energy gives advice on buy/sell (4 days) but customer decides
Customer can save up to € 1500 per month
And save up to 10 hours / month
Agro Energy (subsidiary of Eneco) – IT-platform “Bied optimaal” for agricultural customers to buy/sell
their electricity on the power exchange (APX)
– Also possibility to use their flex-energy on the balancing market of the TSO
Weather forecast
Agro Energy calculations based on weather forecast
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baseline and rebound effects
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Client consumption (real curve)
Supplier sourcing (forecast)
With demand respons between 3:30 – 6:30 h
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Which baseline ?
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Client “boosts” its baseline rebound effect
baseline and rebound effects
e.g. linear baseline at 3:30 h
Issues to solve
We currently invests in the following companies
The smart thermostat TOON that provides consumers better
understanding of their consumption and helps them to reduce their bill
www.quby.nl
Sustainable and completely self-sufficient container homes
www.sustainerhomes.nl
The e-Radiator
using computer servers for
heating homes
www.nerdalize.com
