Demand Response coming to Germany and Europe

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1 Demand Response coming to Germany and Europe Tom Schulz, Co-founder and COO, Entelios AG EcoSummit 2012, Berlin March 23, Entelios AG

2 Agenda 1 The Challenge & Solution 2 Entelios Demand Response Aggregation 3 Path ahead 2012 Entelios AG 2

3 All green with a dirty secret 2012 Entelios AG 3

4 Every second power generation & power consumption must be perfectly balanced despite intermittent power generation of wind and solar. The Challenge Power Generation Power Grid Power Consumption 51Hz 50Hz 49Hz Entelios AG 2012 Confidential 4

Germany s Energiewende : betting on energy efficiency

Power generation in Germany by year, by energy source

2050 Renewable Nuclear Fossil Source: Entelios

5 Germany s Energiewende : betting on energy efficiency and renewables while phasing out nuclear power 700 Power generation in Germany by year, by energy source TWh/a Renewable Nuclear Fossil Source: Entelios analysis, Energiekonzept der Bundesregierung, BMU, BMWi 2012 Entelios AG 5

6 Wildly fluctuating renewable energy sources are making it more difficult for conventional power plants to cover the residual load Residual Load = Demand not covered by renewables Demand and residual load at 50% RE (in GW) hours Source: IER Universität Stuttgart 2012 Entelios AG 6

7 Introducing Demand Response In electricity grids, Demand Response is a process to manage customer consumption (demand) in response to supply conditions Entelios AG 7

8 A Paradigm Shift Before DR: demand side can consume as much power as they want, when they want; supply side is controlled to follow the demand exactly; reserve power plants are needed. With DR: Supply side controls demand side s consumption to follow current generation 2012 Entelios AG 8

9 The necessary reserve power is called upon only rarely this is an opportunity for demand side management. Secondary and tertiary reserve (calls in 2010) Positive Abschaltbare Reserve Lasten Negative Reserve Zuschaltbare Lasten Quelle: Neubarth, J.: Integration erneuerbarer Energien in das Stromversorgungssystem; In: Energie für Deutschland 2011, Weltenergierat-Deutschland, Berlin (2011) 2012 Entelios AG Confidential 9

10 Demand Response is greener, faster and more capital efficient than many alternatives. Evaluation of the 5 pillars of the Energiewende High Flexible Generation Lifecycle CO2- emissions Storage Low Low Demand Response Energy Efficiency Investment / Build Complexity Grid Expansion High Source: Entelios Analysis 2012 Entelios AG Confidential 10

11 Agenda 1 The Challenge & Solution 2 Entelios Demand Response Aggregation 3 Path ahead 2012 Entelios AG 11

12 Entelios is Germany s first Demand Response Aggregator and has taken a market leading role in Europe. Facts Founded 2010 Services: - Demand Response Aggregation - Demand Response as-a-service to utilities and TSOs - Intelligent Energy Efficiency Services Focus: Industrial & Commercial load control & management Offices: Germany Berlin and Munich. Development team in India Entelios AG 12

13 Entelios the Smart Connection between the Supply Side and the Demand Side of the Energy Equation. Network Operations Center (NOC) Demand Side Supply Side Equipment & Processes Regulator Distributed Generation TSO Building Management Utility emobility Energy Relationship Management Energy Markets Entelios AG 2012 Confidential 13

What does Entelios do as a Demand Response Aggregator?

Reporting Balancing Mechanism ISO / TSO / RTO OTC Energy Exchange Capacity Market Notes: NOC: Network

14 What does Entelios do as a Demand Response Aggregator? Business Model MW, MWh Utilities Industrial Commercial Institutional Consumers / Participants: - Factories - Buildings - Households - E-Cars Aggregate Recruiting Sign-up Provisioning Maintenance NOC Forecasting Packaging Monitoring Controlling Trade Energy Relationship Management Sales Trading Reporting Balancing Mechanism ISO / TSO / RTO OTC Energy Exchange Capacity Market Notes: NOC: Network Operations Center ISO: Independent System Operator TSO: Transmission System Operator RTO: Regional Transmission Organization OTC: Over the counter 2012 Entelios AG 14

15 Selection of industries and businesses with a high potential for Demand Response. Industries suited to DR Chemical Industry Breweries Cold Stores Hotels Public Buildings / Facilities Food Processing Industries Foundry / Furnace Lumber Mills Shopping Centers Printing Plants Water- / Air Treatment Concrete Factories 2012 Entelios AG 15

16 Entelios as of today is capable to switch quite a number of loads and distributed generation. Cooling Ventilation Fork Trucks Pressure Pumps Air Conditioning Lighting Heating 2012 Entelios AG 16

17 The Entelios Network Operations Center (NOC) builds out of single loads (bricks) a load curve (brick wall) to be marketed to the energy markets. Single Loads Entelios NOC Virtual Peaker 2012 Entelios AG 17

18 Agenda 1 The Challenge & Solution 2 Entelios Demand Response Aggregation 3 Path ahead 2012 Entelios AG 18

19 Demand side potential from industry and commerce in Germany estimated around 9 GW Flexibility Potential Source: FfE, München 2012 Entelios AG 19

TABELLE SEDC membership includes 44 utilities and energy related companies across Europe; Entelios being one of the

eu The SEDC Vision is to promote the active participation by the demand side in European electricity markets ensure

The SEDC focus is to promote Demand Side programs such as, demand response - peak clipping and shifting, energy usage

20 TABELLE SEDC membership includes 44 utilities and energy related companies across Europe; Entelios being one of the three founding members. The SEDC Vision is to promote the active participation by the demand side in European electricity markets ensure consumer benefits, increase security of supply and reduce carbon emissions. The SEDC focus is to promote Demand Side programs such as, demand response - peak clipping and shifting, energy usage feedback and information, smart home, inhome and in-building automation, electric vehicle charging management, and other programs related to making demand a smart, interactive part of the energy value. Entelios AG 2012 Confidential 20

21 Demand Response is: fast capital efficient green Entelios is Demand Response 2012 Entelios AG 21

22 Thank You! Thomas Schulz, COO Entelios AG, Office Munich Web Phone Entelios AG 22

Industrial / Commercial Demand Response as a Business Model A practical view

Industrial / Commercial Demand Response as a Business Model A practical view EnInnov2012 at Technical University Graz, 16 Feb 2012 Dirk Idstein, Head of Business Development, Entelios AG dirk.idstein@entelios.com