Presentation 4, Session 2 “Energy demand response - novel service models based on building energy data”

1. Energy demand responses: Novel service
models based on building energy data
Rolf Bastiaanssen
Bax & Company
Barcelona, SPAIN

2. Energy wants to be free
“Information wants to be free”, said internet-pioneer
Stewart Brand in the 1960s. “But information also wants
to be expensive...That tension will not go away”.
It is quite likely that energy will obtain freedom from
laws and government-granted monopolies within a
decade. It will require a well-managed transition away
from the current massive investments and vested
interests in generation and distribution, taking perhaps
two or three decades.
But while energy will have a price in the foreseeable
future, it will not be expensive. Energy flexibility service
providers will balance the market powers.

3. About Bax & Company
Bax & Company is a specialised consultancy
advising on technology development (R&D)
and innovative business models, with over 25
years experience in developing and executing
collaborative projects.
We operate on the nexus of technology,
business and policy/regulation. For our clients
we developed R&D and market entry
strategies, develop invaluable networks, and
seek external funding for R&D&I.
Over 35 consultants based in Barcelona
(Spain), Rotterdam (the Netherlands), and
Cambridge (UK) support clients in the fields of
clean tech, energy, automotive, materials, and
infrastructure.

4. Towards a local, flexible and sustainable energy market
The EU has formally adopted a policy vision favouring Local Energy
Communities. Individual countries move ahead on deregulation, in particular the
UK, Belgium, France and Switzerland.
Urgent grid issues in Belgium have turned it into a testing ground for EFS to
system operators, and P2P/LECs
Country-specific exemptions allow pure P2P and LEC-type projects.
Country Progress towards liberalization Experimentation
UK
Ofgem’s regulatory sandbox
Switzerland
Markets free for experimentation
Netherlands
Exemption Dutch electricity law
Belgium
From 2019: Exemption Belgian electricity
law
Sweden
Sandboxes in specific locations (e.g.
university campuses)
France
Exemptions available upon negotiation
Germany
Exemptions available upon
negotiation
Estonia
Experimentation in an open ICT-
infrastructure
Spain
Exemptions available upon
negotiation
Italy
Exemptions available upon
negotiation
“We are actively working to
enable the market for storage in
the office environment”
Nick Haaker, Advisor, Brugel /
Brussels Energy Regulator
“Local Energy Communities are the
next standard”
Luc Picard, BusDev Manager
Energy, ABB

5. Towards a local, flexible and sustainable energy market
Sources: www.usef.energy/app/uploads/2016/12/USEF_PositionPaper_FlexValueChain-vs1.pdf
There are two main types of energy flexibility service providers:
Market places balance energy between prosumers, either virtually
through Peer-to-Peer trading or in physical Local Energy Communities.
Aggregators provide flexibility from decentralised assets to system
operators such as DSOs, TSOs and Balancing Responsible Parties. This
includes Virtual Power Plants and Demand Response models.
1MW of tradable capacity (1000 households or 100 SMEs) could
generate￡50.000-100.000/a in DR/VPP, and/or￡40.000/a in P2P value

6. Towards a local, flexible and sustainable energy market
Virtual Power Plant Local Energy CommunityPeer-to-Peer TradingDemand Response
Going beyond P2P a LEC also
manages the grid, thus
combining the roles of a DSO,
supplier or aggregator at local
level.
Aggregation of demand side
loads for the purpose of Load
shifting and Load shedding to
the TSO, DSO and balancing
markets
Aggregation of decentralised
energy resources (DER) such as
PVs and storages for providing
flexibility services to the DSO,
TSO and balancing markets.
Trading between prosumers
and consumers, enabling to cut
off the traditional energy
supplier and enabling a new
energy market model.
PV integration
Energy
Storage
EV charging
TSO
Cloud based
aggregation platform
DSO
Balancing markets
P2P trading platform
Single
physical
connection DSO

7. Example of a residential P2P/LEC
• LECs are R&D stage, mostly subsidized
• P2P in (commercial) innovation phase,
but mostly strategic industrial
partnerships and one-off pilots
• Platform providers set up local
partnerships with asset owners and
community organisers for onboarding
• Experimentation of models;
• Per node monthly fixed fee , with trading
benefits for asset owners, or benefit-
sharing models
• Energy pricing could be fixed or dynamic
• CAPEX by asset owners or EFS provided
• Engagement strategy; opt-our for new
developments, opt-in for existing
communities

8. Main strategies for industrial entrants
1 Tailored Network services for DSOs
• Commercial. At substation level in
high-growth areas, to address
capacity issues, with storage in the
50-500kW range.
• Once operational, I+C P2P could be
added to the service portfolio
2 VPP/DR, storage services to I+C
• Commercial + R&D. Whilst
considering pre-financing of
storage in the 20-50kW range.
• Once operational, I+C P2P
could be added to the service
portfolio
3 Explore Local Energy
Communities models
• Including distribution-as a service
as innovation projects, in the UK,
and Belgium or the Netherlands
Downscaling existing product/service
models from high-voltage to low and
mid-voltage solutions covering storage
and associated components
Competitive advantage lies in ability to
finance
1
2 3

9. Upcoming experiments and pilots
R&D site & partnership
VUB Brussels (BE) Green Energy Campus
Aim Long-term specialist R&D&I
collaboration
Approach On-site R&D, collaborating &
competing with specialist hardware /
software developers. Future-ready due
to multi-vector scope
Preparation 6-9 months
Run-time 3+ years, from 2020
Multi-country piloting programmes
AC/DC and Smart-Ex partnerships
Aim Short term pilots / demonstrators in
selected EU countries
Approach Access to established demo sites via
network of business clusters
Supported by European Commission
Preparation 6-9 months
Run-time 3-4 years, from 2019
Multi-year early stage commercial P2P / LEC pilots
Aim Testing in an operational environment
Approach Individual agreements with municipality
or housing provider
Preparatio
n
6-9 months
Run-time 3-4 years, from 2019
Contacts • Belgium: through VUB and Flux50
• Netherlands; Rotterdam, Amersfoort
Funding 250-node experiment costs: €250-500k.
Business case covers up to 50-75%, EFS
+ hardware provider 0-25%, Local
facilitator 0-25%. External funding
available in EU (10-50%)
https://flux50.com/media/1754/Thierry%20Coosemans%20-%20Green%20Energy%20Park%20Zellik.pdf

10. https://timepac2019.blogspot.com
If you would like to have more information
about this presentation, please contact
Bax & Company