Industrial / Commercial Demand Response as a Busine ss ModelA practical view

EnInnov2012 at Technical University Graz, 16 Feb 2012

Dirk Idstein, Head of Business Development, Entelios AGdirk.idstein@entelios.com | www.entelios.com

Germany’s “energy turnaround”: betting on energy efficiency and renewables while phasing out nuclear power.

Source: Entelios analysis, Energiekonzept der Bundesregierung, BMU, BMWi

0

100

200

300

400

500

600

700

2011 2020 2030 2040 2050

TW

h/a

Power generation in Germanyby year, by energy source

Renewable Nuclear Fossil

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Renewable energy sources are making it more difficult forconventional power plants to cover the residual load…

Residual Load = Demand not covered by renewables

Demand and residual load at 40% RE (in GW)

Source: IER Universität Stuttgart

hours

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• Practically no buffer / storage

• Reserve / balancing power is expensive

… because every minute, power generation and consumption must be perfectly balanced.

The balancing act

50Hz

51Hz

49Hz

Generation Demand

Grid

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German “energy turnaround” rests on 5 pillars

Costs Time Green

Energy Efficiency €€

Flexible Generation €€€

Build out Transmission andDistribution Grids

€€

Energy Storage €€€

Demand Side Management / Demand Response*

€

Converging on a consensus in government and industry

* A process to manage customer consumption (demand) of electricity in response to supply conditions.

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A low call frequency for reserve power is an ideal precon dition forindustry & commerce to engage in intelligent Demand Res ponse.

Abschaltbare Lasten

Zuschaltbare Lasten

SRL/MRL Calls (2010)

Quelle: Neubarth, J.: Integration erneuerbarer Energien in das Stromversorgungssystem; In: Energie für Deutschland 2011, Weltenergierat-Deutschland, Berlin (2011)

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Demand side potential from industry and commerce in Germany estimated around 9 GW.

Source: FfE, München

Flexibility Potential

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� Founded 2010

� Services :

− Demand Response Aggregation

− Demand Response as-a-Serviceto utilities and TSOs

− Intelligent Energy Efficiency Services

� Focus : Industrial , Commercial & Institutional load control & management

� Offices : Germany – Berlin and Munich. Development team in India.

Entelios is Germany´s first Demand Response Aggregator andhas taken a market leading role in Europe.

Facts

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Notes:NOC: Network Operations CenterTSO: Transmission System Operator

DSO: Distribution System OperatorOTC: Over the counter* In discussion for specific European markets, e.g. France.

NOCCom-

mercializeAggregate

Industrial

• Recruiting• Sign-up• Provisioning• Maintenance

• Forecasting• Packaging• Monitoring• Controlling

• Trading• Reporting• Balancing

Mechanism

Commercial

Institutional

Utilities

DSO

OTC

Energy Exchange

€

MW, MWh

Entelios is the smart connection between the supply side and the demand side of the energy equation.

Capacity Market*

Functions Demand Response Aggregator

TSO

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Compelling benefits for participating in a Demand Response program.

.. without any additional costs or risks.

Benefits for participating customers …

• No investments

• No discomfort

• Always in control

• Simple to use

• Ability to add later furtherpotential of switchable load(production and /or anxilliaryprocesses)

• Attractive financial benefits fromcommercializaton of load adjustments

• Positive image : innovation & activecontribution to grid stability andefficiency

• Transparency on own energyconsumption : first step towardspossible reduction and decision forfurther value-adding services

Ready to participate within 4 weeks from first meet ing

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Entelios as of today is capable switching quite a n umber of loads including distributed generation.

Lighting

Ventilation

Air Conditioning

Cooling

Heating

Fork Trucks

Pumps

Pressure

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Load ManagementIntelligence

The Entelios NOC combines in-depth industry know -how with scalable processes and state of the art ICT.

Dem

and

Sid

e P

artic

ipan

ts

CRM, PRMCustomer Analytics

Billing & InvoicingRevenue Assurance

E-TradingAsset Management

InterfacesInterfaces

Sys

tem

Ope

rato

r &

Util

ity C

lient

s

Entelios Network Operations Center (NOC) CoreReal-time Rule -based Engine

Residential(E-Mobility only)

Businesses &Industry

Prediction & Modeling System

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Important measures to overcome current slow market adoption of Demand Response.

Policy Support & Regulatory Frameworks

Public / Private Partnership

Awareness Generation

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Demand Response is:

• faster

• greener

• and more capital efficient

Demand Response is a critical resource!

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Thank You!

Dirk IdsteinBusiness DevelopmentEntelios AG

Mobile +49 171 2240931eMail dirk.idstein@entelios.com

ww

w.e

ntel

ios.

com

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