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The Importance of DSO Markets to Residential Flexibility

Piclo
May 14, 2020

The Importance of DSO Markets to Residential Flexibility

Piclo

May 14, 2020
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  1. KALUZA | OVO GROUP CONSUMER B2C ENERGY SERVICES + 5m

    CUSTOMERS BUSINESS B2B TECHNOLOGY PLATFORMS 2 OVO RETAIL BRAND KALUZA RESIDENTIAL FLEXIBILITY
  2. KALUZA | PEAK THREAT REQUIRES MITIGATION RESIDENTIAL FLEXIBILITY 4 GETTING

    READY FOR A DECARBONISED GRID The transition to a distributed energy network is happening The utilisation rate of renewable energy must be improved Flexibility and storage is proving to improve network management Addition of EVs, smart heating and home energy storage Flexible & smart home technologies can empower customers to be part of a democratised system Source: National Grid Future Energy Scenario 2019 2020 2050 104GW peak 2020 peak 59GW Other 44GW Transport 24GW Heating 36GW 64GW 84GW Dispatchable generation @Kaluza_tech
  3. KALUZA | THE KALUZA NETWORK EFFECT ENERGY SUPPLIERS Suppliers use

    Kaluza connected devices to create propositions for customers, using unlocked Kaluza value. Making devices more attractive to customers. FLEXIBILITY BUYERS TSOs, DSOs and Traders use Kaluza services and flexibility to balance the national grid and local constraints via a wide range of devices. OEMS / DEVICES IoT connected electric heating, EV chargers, home energy storage etc. Using Kaluza intelligence to make them valuable. LOWER COST Structure / Network Effects 6 @Kaluza_tech RESIDENTIAL FLEXIBILITY
  4. KALUZA | THE PLATFORM INTELLIGENT ENERGY PLATFORM WHOLESALE MARKET DISTRIBUTION

    NETWORK TSO DISTRIBUTED GENERATION CO 2 DEVICE PARTNERS FLEX MARKET PARTNERS @Kaluza_tec h RESIDENTIAL FLEXIBILITY DNO PARTNERS ENERGY RETAIL PARTNERS TSO PARTNER
  5. KALUZA | GRID SECURITY • Absolute last resort mechanism to

    protect security of supply • Route for network operators to dispatch emergency flexibility KEY MARKET FOUNDATIONS FOR A FLEXIBLE, RESILIENT GRID 9 PRICE SIGNALS FOR FLEXIBILITY • Price signals that create an incentive for all smart device owners • Enabled by smart metering and HH settlement • Increases consumption of renewable generation • Network charges incentivise charging away from network peaks FLEXIBILITY MARKETS • Direct procurement of flexibility provides certainty for DSOs and TSOs when it’s needed • Corrects any imbalance or constraints remaining after price signal optimisation @Kaluza_tech RESIDENTIAL FLEXIBILITY
  6. KALUZA | IMPORTANCE OF DSO FLEXIBILITY MARKETS 10 DSO FLEXIBILITY

    MARKETS @Kaluza_tech RESIDENTIAL FLEXIBILITY • More certainty to the DSO’s when needed • Addressing network constraints at lower voltage levels • Perfect opportunity for residential flexibility
  7. KALUZA | LEARNINGS SO FAR 13 @Kaluza_tech RESIDENTIAL FLEXIBILITY •

    Markets are growing and evolving quickly • One of the only accessible markets for residential flexibility out there BUT…. • Processes need some work • Issues for primary use assets participating in the market • Lengthy procurement cycles limiting utilisation