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Європейський досвід SAP в областіреформування ринку електроенергетики. Уроки та рекомендації

Андреас ФлікНезалежний експерт з питань енергетики

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 3© SAP Utilities Info Day - Ukraine IEAC/A. Flik

Agenda

1. Energy Transition

2. Current regulation in the EU

3. Market-opening and Competition in Germany

4. Future EU planning

5. New electricity market law in Ukraine

6. Energy Trading and Procurement in Germany

7. Digital revolution - Changes in the Utilities value chain

8. Energy Transition facts – conventional Generation and Renewables

9. Virtual PowerPlant and Demand Side Management

10. New Business for Power-to-X and Sector Coupling

11. Unbundling of the Transmission Grid

12. DSO-development for the next 10 years

13. Energy Transition facts in the Sales Segment

14. Digitalization of Measurement

15. Energy Service Provider

16. Shared Economy and a comprehensive look into the future


© A. Flik

Atmospheric CO2 levels are 40% higher than they were in 1750

Greenhouse Gas has the dominating role

Greenhouse gas acts in the atmosphere for 100 years

Damage due to climate change till 2050 (Munich RE-insurance):

➢ Global: 5 - 20% of annual GDP (currently: US $ 2,200 - 9,000 bn), with effective

climate protection measures: 1% (currently US $ 450 bn)

➢ Germany: 800 billion €

➢ Incomplete estimates: 0.2 to 2% income loss at 2 ° C additional warming

Social and technological, in some cases disruptive changes have a huge leverage,

so cost projections are not very reliable Source: Munich RE 2016


© A. Flik

The Energy-Transition – the largest structural change in thehistory of German Energy Industry

Future aims of the Energy Transition in Germany➢ Complete phase-out of nuclear Energy till 2022

➢ Ambitious targets exist for the decarbonization

of Energy Generation

➢ Zero net anthropogenic greenhouse gas emissions

to be reached during the second half of the 21st century

The Decentralization of Energy Supply will be solved by➢ Installing dezentralized Renewables (Wind, Solar, Biogas,

Water,..)

➢ Changing the existing grid to the future autonomous

and intelligent Grid (Smart Grid)

➢ Market-opening especially in the sales area

➢ New storage concepts

Changing from the old Energy World

to the new Energy Supply

<2˚m(1,5 ˚) -

target by UN

till 2100

80%

Renewables

till 2050

Minus 40%

Greenhouse-

gas till 2030

IPCC: Intergovernmental Panel on Climate Change

27%

Renewables

till 2030

27%

Energy-

Efficiency till

2030

Emissions Trading and

coupling of cross-border

transmission capacity

http://unfccc.int/files/meetings/paris_nov_2015/application/pdf/paris_agreement_-_next_steps_post_adoption.pdf

http://unfccc.int/meetings/marrakech_nov_2016/session/9676/php/view/agenda.php#c

http://unfccc.int/meetings/marrakech_nov_2016/session/9676/php/view/agenda.php#c


© A. Flik

History of legislation for the internal EU market

➢The liberalization of the energy market in the EU

started in 1996 with the Directive on the electricity

internal market 96/92/EC followed by the corresponding

gas directive 98/30/EC in 1998 (" the 1. Package")

➢This was followed by the so called "Accelaration

Directives" in 2003: 2003/54/EC for electricity and

2003/55/EC for gas

➢Ending up so far in the "3th package" today consists of 5

directives / regulations

➢ACER Regulation (EC) 713/2009, forces reporting

mechanisms (REMIT, EMIR, MiFID)

➢Electricity Cross-Border Regulation (EC) No 714/2009

➢Gas Cross-Border Regulation (EC) No 715/2009

➢Electricity Directive 2009/72/EC

➢Gas Directive 2009/73/EC

1. Separate grid

operation from

supply and

generation

2. Unbundle

Transmission

3. Strengthening

customer rights

4. Smart Meter

Rollout

5. Basic supply of

Electricity and

Gas


© A. Flik

General Situation in the EU

➢Markets for C&I are all open; for household customers to a very far extend.

Germany has liberalized metering too (UK and NL to some extend as well)

➢Switching rate completely different, mainly due to still regulated prices for

household customers

➢Rules for market processes and communication differ from country to

country.

➢only one common approach among the members of the ebIX-group with

different implementation per country (only CH is using 100% „pure“ ebIX).

➢nordics countries decided to harmonize their rules so far (until 2015)

➢Suppression of RES feed-in by grid-companies not possible

➢ leads to compensation

➢grid investments to be done (good climate for RES investment based on priority

dispatch rules)


© A. Flik

Market-opening and Competition in Germany

National sales

▪ Deregulation to

the Utilities value

chain

▪ Sales

organization

– Industrial

approach for

sales activities

▪ Branding and

segmentation

DeregulationProcesses & Systems

▪ Co-determination

of market rules

▪ On top of IT-

System, clear

SAP-usage

strategy

▪ Struggling with

Smart-Devices

▪ How to live

Unbundling

Market CompetencePlatform strategy

“getting smart “

• Realization

of efficiencies in

partnerships

• Beginning of

digital

Transformation

• StandardizationProcess / IT-

Integration

▪ Privatization

▪ Full vertical

integration

▪ Market

Liberalization

Privatization

- 2004 - 2010 Tomorrow < 2000 - 2017

Smart X

Smart-X Business

▪ Industry 4.0

▪ Cloud

▪ Mobility

▪ Virtualization

▪ Autonomy

▪ AI

▪ Robotics

▪ Big data analytics

▪ Social Layering

▪ Sharing Economy

T D G S Market efficiency


© A. Flik

The „Winter-Package“Clean energy for all Europeans

➢Focus on distributed generation, „Prosumage“,

local energy communities / networks

➢ Incentives to innovate

➢Estabish Regional Control Centers/ROC

for TSO‘s and DSO-TSO cooperation

➢Discussion on capacity markets vs regional balancing

➢Coupling of sectors energy, Heat, Transport & Logistic, eMobility

➢No more price regulation for households / vulnerable customers

➢New „DSO-entity“

➢Billing transparency, cyber security

➢Standaridized market communication across EU


© A. Flik

New electricity market law in Ukraine

Key issues and expected outcomes

➢Liberalizing and restructuring of Electricity market in compliance with the

requirements of the “EU Third Energy Package”

➢Establishment of free market and competition in production, supply and

trade segments of the electricity market, which should be unbundled from

network activities. New entries are expected to these segments of the market.

➢Stabilization of regulatory framework for renewables, and embracement of the

responsibility for imbalances

➢Bankability of renewable projects to be enhanced as PPAs (power purchase

agreements) will become possible at early stages of development projects

(“guaranteed buyer”)

➢Electricity market to open up for international cross-border trade and

exchanges, and to continue synchronization with neighboring markets and

integration into the European regional power system

➢ Investments to be more readily raised for the network upgrade and development,

including through the privatization of energy assets

Source: CMS


Structure of the new electricity market in Ukraine

Liberalized electricity market

on 1st of July 2019

a) Market of bilateral

contracts

b) Day ahead market (DAM),

c) Intraday market (IDM)

d) Balancing market (BM)

e) Market for ancillary

services

f) Retail market


Basic business model of energy trading

(after liberalization in 1997)

➢ Power plant operators and small

generators supply electricity to

traders and large consumers

➢ The choice of electricity supplier is free

➢ Trader and plant operators are part of a Balancing group or are

Balancing group managers

➢ App. 9000 balancing areas care for the grid-stability in Germany

The Energy Trade

➢ balances the energy portfolio across different markets

➢ Is interface in international markets

➢ Fair market price through the trade (not only by regulative intervention)

➢ Trading can be done physical and derivative, via trading instrument

Trading and procurement including balancing group

managers Energy Trade

Generation SalesTradingTrading

Wholesale


The energy trade

➢ takes place in various marketplaces, on exchanges and outside

exchanges via OTC-markets (Over-the-counter)

➢ OTC offers freely negotiable contracts

➢ optimizes the sales and procurement portfolio

Utilities see the energy trading market as a reference value for energy the

next day in the spot market or for the future in the Derivates market

➢ Plant operation is based on real options

(adaptation of assets to a changed corporate environment in order to

optimize performance)

➢ the physical electricity trading is used for procurement optimization

(using one's own power plants)

Trading and procurement including balancing group managers

Energy Trade / Optimization and Dispatching

€


The different markets

➢ Spot-market: Short-term purchase of shortages (open or close trading

positions) strong volatile character

➢ Derivates market: Reduction of price and volume risks in the

procurement

Process for investment-decision:

➢ Power plant operator opts for new investment if variable

(eg fuel costs, emission certificates) and fixed costs

(new construction) are lower than expected revenues

➢ For existing investments, profit contribution and marginal

costs are calculated, if long-term negative:

➢ owner can decide for plant switch off

➢ Closes open trading-positions at the spot-market

➢ This leads to Risc-Management


Different markets and Investment decision



Trade relations and physical compensation

Trading

physical Layer

Seller Stock Market Buyer

Clearing

House CCP

Grid operators Grid operatorsFeed-In Extraction

Grid-Service

Balance Regulation

Balancing energy in

the case of deviation

byTSO

Balancing energy in

the case of deviation

byTSO

anonym

Central Counterparty (CCP Clearing)

European Commodity Clearing AG for EEX

EMIR: European Market

Infrastructure Regulation

Support an minimize the credit risk, eg by margin payment members side, price forward curve

e.g. Power failure


➢ Falling wholesale prices

➢ Increasing regulatory demands

➢ Challenges in declining electricity prices, caused by

surplus capacity in the market (RES)

➢ Accelerated Grid Expansion

➢ Increasing Digitization

Leads to unprofitable power plants and makes „Make-or-Buy“ principle

dominating.

Trading and procurement including balancing group managers Future major Risks


Digital revolution has hit the Energy IndustryDigitalization of Energy Industry by law

Changing the rules for the Utilities

Value Chain

➢ Multi-Channeling to the customer

➢ Customer with access to relevant

informations

➢ Individual offerings of services

➢ Complex demand behavior

➢ Mobile devices and fast internet

➢ New technologies

➢ Access of non-Utility suppliers, Start-

Ups

➢ Web 2.0 and the Internet of Things

➢ Big data to capture customer foot-

print

➢ Changing regulatory environment

Challenges

➢ Bidirectional Energy-flow

➢ Direct Marketing

➢ Digitized Measurement

➢ Decentralization RES

➢ Customer Proximity

➢ Volatility

➢ Price

comparison


Changes in the Utilities Value Chain

Customer Centric perspective

Transmission

Distribution

Generation

Storage

Measurement

Trading

Wholesale

Sales/Delivery

Marketing

Services &Value-addedBusiness

Virtual Powerplant, P2P/P2X-Storage

Industry 4 & digitized Plant-Management

Predictive Maintenance

Digitized Network Planning, mobile

Automatization technical Fieldservice

Smart Metering

Merging of consumption and customer data

Precise forecasting

Realtime Transaction Planning

Big data, Customer Analytics, Customer

Segmentation, Social Media, Smart Home

Multi-Channel, Funding, Smart Cities

TelCo, eMobility, Smart Logistics, M2C-providing,

Energy-related Services, dig. Process HR, FI

Customer-

Proximity

B2C, C&I

Prosumer

Digital

Culture


© A. Flik

Energy Transition Facts

„Generation“

› Drop in prices of wholesale trade

https://www.eex.com/en/

(current spot-price)

› No improvement of the situation in sight:

prices expected for future below 30€/MWh,

Unpredictable events in addition

› Conventional generation is going down

› Gas-fuelled PP are predictably not economically

viable due to negative contribution. Lower

margins for coal-fuelled PP from 10-15€/MWh

to 0-5€/MWh - New buildings would refinance

only to 50% of the market allow

PhysicalElectricityIndex Jan. toOct. 2016 on average:27,18€/MWh

https://www.epexspot.com/de/marktdaten/elix/index-table/2016-12-31/EU

!Wind + Solar

Temper., shortage

https://www.eex.com/en/

EnergiepreisentwicklungXLS_5619001.xls


© A. Flik

Energy Transition Facts„RENEWABLES“

› 32,6% in 2015 (2014: 25,8 %, 2000:

6%) of gross electricity generation is

based on renewables.

Stagnation in 2016!

› The amount of renewables will

increase up to 80% of generation

till 2050. The grid-extension has to

fulfill the needs.

› Every 55th German is statistically an

energy producer. We have 450

conventional PP and 1,5 Mio. dec. IPP

(Solar, Biomass, Wind)


© A. Flik

The Energy Transition is confronting the operators of conventional

power plants with challenges in different areas

Challenges for conventional Powerplants

The Powerplant Ressource Sheduling has to

fulfill new and complex influence factors

The requirements for Powerplant Operations in

terms of Flexibility will increase dramatically

New Energy Markets will potentially exist and the

structures of the Energy Markets get more

complex

No Protection of Economic Viabilitywithout handling these challenges


© A. Flik

Energy Transition

Requirements for Flexibility, basic principle

➢ Load shifting potentials in Smart

Grid lets renewable feed-in rise

independent if Energy price climbs

or falls

➢ Based on Virtual PowerPlant-

concepts, the „Prosumer“ can

benefit from the energy transition

with his own flexibility and load

➢ The regulation of Demand could be

done by Energy Service

Providers

➢ Renewables-capacities has to increase to reach CO2-emission-target 2050

➢ International agreements, national laws and regulations force to act

➢ New market designs are obligatory: Smart Grid, Smart Market, Load Mgnt.

➢ Sector coupling based on Storage, eMobility, P2H,… increases electricity

demand additionally

➢ Capacities makes load-shifting possible, based on flexible energy

logistics and management of grid bottlenecks

RE-

generation

residual

fossil generation

RE-shortfall

app. 550(TWh/a 2015)

250 190

110

Germany 2050


© A. Flik

Demand Side Management (DSM)

Challenges

• To enable the “Energiewende” and integrate volatile renewable energy sources

DSM is required

• Residential customers need to be included on a large scale

• The DSO needs to act as a market facilitator and as an active system operator

Value

• In Germany DSM

can shift up to

19GW load (peak

load is about

80GW)*

• Annual cost savings

are estimated to be

about 500m €*

• DSM helps to

minimize necessary

investment into

additional grid

capacity. * Source: Institute for Energy Economics and the Rational Use of Energy (IER), University Stuttgart


© A. Flik

Virtual Power Plant Management as a future

Core-competence, Meter2Cash for Prosumers

Reference: http://srren.ipcc-wg3.de/report/IPCC_SRREN_Ch08.pdf

The Virtual Power Plant is managing an intelligent,decentralized and flexible power supply

➢ Fluctuating production(Wind, PV)

➢ Controllable plants (CHP & Bioenergy)

➢ Storage concepts➢ Flexible consumers

are connected together to ensure a stable power supply

VPP


© A. Flik

Virtual power plant ManagementRevenue potential by marketing of balancing power and the scheduled operation

• Targeted control of electricity demand

• System flexibility for load shifting in times of higher electricity prices (e.q. to pick intraday price fluctuations)

• Generation and demand fluctuations can be compensated in the power grid

Electric power generation on demand

• Ensure stable power frequency (49,5 to 50,2 Hz)

• TSO demand on positive and negative balancing power for primary balancing power, secondary balancing power and minute reserve requested

• Controllable, renewable energy and CHP suited to offer minute reserve and secondary balancing

Balancing Power

• Compensation for the mere provision of flexibility

Revenue potential for power plant operator

Requirements for participantsC&I-customer and producers:

➢ Completely ramp up and down within 15min

➢ Temporal shifts within the production process

➢ Supervizingmarket prices(intraday,day-ahead, bal.)

➢ VPP-Management-System(Experienced Energy Service)

➢ Technical & Oper.restrictions


© A. Flik

Basics for storage system operators (eg natural gas)

Legal unbundling is obligatory if storage is part of vertical integrated

company (competitive)

Regulative situation exists…

➢if access to the installation necessary, in order to grand technical and

economic access to the grid regarding customer supply

➢if its the task fulfillment of the grid operator (eg for maintaining the grid

stability)

Access to storage facility has to be done non-discriminatory

Guidelines with good practice for Storage System Operators (SSO) exists

for standardization of access conditions at EU level


© A. Flik

Power-to-Heat Technology

➢Resistance- or Electrodes hot water boiler

➢short response times

➢negligible operating costs

➢exceptionally flexible to cover short-term load peaks

➢Heat Pump

➢higher specific investment costs

➢ less dynamic in the control behavior

➢much higher energy efficiency

➢ lower variable costs

➢ to prefer with constant base load requirement

Demand and compensation of balancing energy determine the profitability of

the plants substantially


© A. Flik

Power-to-Heat, cross-sector system solution

➢Hybrid generation of heat from surplus power and fossile fuel possible

➢Demand side can respond more flexible to stock offers and balancing energy

market

➢Preferrable if sum of electricity purchase costs, grid charges, levies and taxes

below costs of fossile–based heating

Measures

Effectsbalancing group

management

Surplus

Electricity

Offer >

Demand

(nationwide)

Grid

Bottleneck

(regional)

planned

unplanned

Distribution

Grid

Transmission

Grid

Spot-Market

Balancing

Energy

Neg. prices

Negative

balancing

Energy

Feed-In

Management

Day-After

Trading


© A. Flik

Power-to-Heat / Importance as a system service provider

Business-Case:

➢ Several installations in Germany are existing in the range between 5MW to

100MW.

➢ Base load of a district heating network is approximately 10% of the peak load

of the coldest day of the year

➢ Maximum efficiency in the case that base-load is identical to the Energy

surplus.

➢ Easy storage capabilities of heat can take over Energy surplus

Total performance of district-heating facilities in Germany exceeds 28GW

Based on appraisal, thermic Potential of about 28 x 10% = 2,8GW exists for

facilities

➢ No exemption from power-to-heat and power-to-gas grid fees as energy is

not taken from the same grid and feed back into it (Power-to-power, by

contrast, complies with the facts)

➢ Combined sector-coupled storage, such as high-temperature storage HTS,

where energy can be partially fed back into the same grid complies


© A. Flik

Different Storage Technologies for different applications

Forward Market

Day Ahead Market

Intra Day Market

Balancing Market

Lithium

Lithium-Iron-Phosphate

Advantage Lithium:

• Fast response

• Quick Service

• 80% DOD

• High Power

• Efficiency > 95%

• No Memory

effect

• Highest energy

density

• 15 to 20 years LT

Lithium Lead

Carbon (LC)

Disadvantage:

High Cost

Size: 0,1 - 10MWh

Advantage LC:

• Large storage

• 50-70% DOD

• High power

• Lower cost

• Efficiency > 85%

• 10-15 years LT

Disadvantage:

Medium Energy Density

High Weight

Efficiency 80%

Size: 0,1 - 10MWh

Redox Flow

(RF)

Advantage RF:

• Large storage

• 50-70% DOD

• High Power

• Lower cost

• No memory effect

• 15 to 20 years LT

Disadvantage:

Low Energy Density

No fast response

Efficiency < 80%

Size: 1 - 10MWh

High Temp Storage

(HTS)

Advantage HTS:

• Very large

storage

• 80% DOD

• Electricity, heat

and AC

generation

• Lowest Cost

• Minimum space

• 50 years LT

Disadvantage:

No fast response

E-Efficiency 40%

H-Efficiency 40%

Size: 3 - 500MWh

Copyright© 2016 RES All Rights Reserved


© A. Flik

Increased requirements for Transmission Grid Operators

in the Energy Act 2011

➢Federal Network Agency Germany works for thorough

implementation of behavior regulation

➢One of the factors which made ownership of transmission

subsidiaries less attractive

➢Leads power companies to decide to sell their transmission

subsidiaries (ownership unbundling)

➢EnBW and RWE kept their Transmission Business within the group

as an Independent Transmission Operator (ITO)

➢Advantages in influencing the financial invest, keeping the overall

Rating

➢Profitable transmission business

➢Leverage of external synergies


The last step: Based on the EU 3rd package there exist 3 principal

unbundling options for Transmission

Generation

TSO

(Ownership +

Operation)

Sales / Trading

Generation

Gridowner

Sales / Trading

Generation

ITO

Sales / Trading

Independent

grid operator

1 2 3Ownership Unbundling Independent System

Operator (ISO)The Third Way (ITO)

› Keeping the grid assets

› Systemmanagement and investment

decissions by independent ISO

› ISO plans grid extensions and enforces

the grid owner to do the investments

› In principle loss of ownership

› Independent decissions by ITO

› Restrictions in HR

› Option for independent financing

› no Shared Services (IT,

Controlling)

› strict Management Unbundling

› Ownership unbundling

› TSO must not have control of

generation and sales;

› No common management;

› No common financing


© A. Flik

Energy Transition Facts Germany

„Grid Segment“

› 35 TKm of Transmission Grid length maintained by 4 Operators

› Depending on technology 3500km of new high-voltage tracks are

required (grid bottleneck north to south)

› DSOs are operating more then 1,1m Km of Low-Voltage and more the

500.000 Km of Medium-Voltage

Power Grid

› Since 2011 Federal Network

Agency planned to expand

the Distribution Grid

by 8-10 TKm annually

(up to 195 Tkm)


© A. Flik


„Grid Segment“

Wholesale market

State allocations- Tax (54% in 2016)

Net usage fee

- Start of newregulatory Period 2016

Primary Electricity Supply

- End user


DSO – the next 10 years?

Demand side participation - Rural and Remote(*) - Urban

Business Drivers

➢ Customer and Community Expectations

➢ Distributed Energy Resources

➢ State and local planning

➢ Environmental Policy

➢ Smart Logistics and eMobility

➢ Shared Economy

➢ Network Performance

➢ Asset Renewal

➢ Data Management, Sensorik 4, remote

Monitoring and Control

➢ Regulatory Influence and Incentives

➢ Aging Workforce

Key Operations and Roles

➢Energy Transition

Project Manager

Supporting Roles

➢Customer Service and Connections

Service Agents

➢Network development

Network Planner

➢Asset Management

Asset Designer, Asset Manager

➢Supply restauration

Field Crew Member

➢Smart-X, VPP

Controller / Dispatcher / Operator

(*) Rural embrace od Microgrid, DER, onsite Energy storage, Solar PV


Various requirements exists

which have to be solved(examples)

Customer requirements toquality and quantity

- Frequency ofoutages

- Efficiency ofdistributioninfrastructure

- Responsivenessof maintenance

- Relative impact of outages on customers and system

-…

RegulatoryRequirements

- 3rd package

- ACER Regulation (EC) 713/2009 (REMIT, EMIR, MiFID)

- Electricity & Gas Cross-Border Regulation (EC) No 714-715/2009

- Electricity & Gas Directive2009/72+73/EC

Profitability / Margin

- Competitiveness

- Sustainability ofcost levels/tariffs

- Cash flowmanagement

- Control of theftand accountedlosses

- Ability to billconsumers

Physical„wearing out“ offacilities

- PredictiveMaintenance

- Planning & Investment Strategie

- Smart Grid


© A. Flik

Measurement / Meter Operator

Digitalization of Measurement

Development of the legal framework in Germany

➢3. EU Internal Market Package (2009)

Implementation of smart metering systems to be implemented by 80% of final

consumers by 2020

➢EnWG amendment (2010, 2011 and 2012)

Legal anchoring of the EU installation obligation in Germany

➢Cost-Benefit Analysis (KNA) 2013

The cost-benefit analysis prepared on

behalf of the BMWi comes to a positive

business case for a partial rollout

in Germany

➢Draft act on the Digitalization of the

Energiewende (4 November 2015)

Existing laws and regulations are being

adapted by 15 individual articles in

the new MsbG.


© A. Flik

Important points and rollout

specifications

➢Time staggering of the rollout obligation

according to customer groups

➢ Introduction of staggered price

caps for metering fees

➢ Introduction of a minimum rollout rate

of 10% in the first three years

➢ Introduction of a fundamentally

responsible Measuring

point Operators (fMO)

➢Separation between DSO

(MO) and (fMO)

Source: BSI


© A. Flik


„Sales Segment“

› Re-municipalization: since 2007, more than 60 new municipalities were founded

➢Change in the competitive landscape: increasing market share of new competitors since 2002 by 20% to 50%. Upcoming competition – a challenge ?➢ New independent retailers (Ikea, Yello, Greenpeace, procurement organizations) - Sales

➢ “Energiegenossenschaften” (>1000 in DE, Prokon with 537MW cap.) – Building new RES-Plants

➢ “Schwarmenergie” , Lichtblick – Intelligent Energy, local balancing for VPP

➢ Google (RES – map) – Identification of solar potential at home

➢ Sonnenbatterie, DE – Energy storage concept for VPP

➢ Tesla, BMW – Energy storage concepts

➢ https://www.reddit.com/r/slockit/comments/4b0zcj/rwe_slockit_reveal_blockcharge_video_electric/

› Change in customer expectations and behavior : churn rates have risen steadily. Statistically, every 4th Industrial- and private customers changes the supplier this year

› No margin in classic B2B-customer segment, B2C Prosumer with B2B-requirements

https://www.reddit.com/r/slockit/comments/4b0zcj/rwe_slockit_reveal_blockcharge_video_electric/


Digital transformation (Smart-X-world)

The utilities relationship to the customer is being redefined

Customer UtilityChange !

Business closer to Real Time

➢ dynamic pricing per 15/30/60 min interval; curtailments on short notice

New Customer Services leveraging AMI and Home Automation

➢ Dis/reconnection, on demand read, demand side mgmt

New Energy Efficiency Products

➢ Time of use/day rates; price signals, rebate incentives for energy savings

Consumer-owned Generation

➢ self-usage/trading, local/remote, settlement

New Business Models

➢ generation/supply contracting; selling of ancillary/settlement/admin services

E-Mobility

➢ Managing demand, plug-in versus battery-swap, billing


Background EU:

➢ Energy Efficiency Directive (2006/32 / EC)

➢ Reduction of energy consumption

➢ Promotion of the market for energy services

Definition of an energy Service Provider:

Combines energy with energy-efficient technology and / or provides the necessary

operational, maintenance and control activities.

The basis is a contractual relationship, e.g. to provide light or heat.

Interaction between suppliers, device manufacturers, IT and software

companies and measurement service providers takes place.

Provides individual, specialized and assembled services instead of products.

Energy Service Provider


© A. Flik


Typical aggregator task „Direktvermarktung“

The Market Premium is to replace the difference between the fixed EEG remuneration and the monthly

average price on the exchange determined ex-post

Market Premium

Exchange

RevenuesEnergy

Marketing of balancing

energy


Turnover doubling over the next 3 years

➢ Energy management and digitalization for the systematic monitoring of

energy flows and their automatic control

➢ Process analysis together with customer finds out service areas

with value-added

➢ Customer proximity and partner management, and detailed customer-

segmentation

➢ Contract-Management with clear responsibilities, shedules. fulfillment of

legal requirements

➢ Linking with products outside the energy sector (Alerting, Repair-

Services, Travel-Management, Insurance,…)


Opportunities for growth


© A. Flik

Based on action framework of past and ongoing IT-activities, the IT

becomes a core-competency and relevant success-factor for German

Utility-companies

2004 2006 20081998 2000 2002 2010

Merge

Liberalisation,

Customer

Processes

Regulation New Products

Productivity

Bu

sin

ess

Replacement ofLegacy billingSystems

Setup of Yello Systems

Setup of Energy

Logistics

Market Processes

Informational

Unbundling

Smart Meter

Retail

Products

Geographical

Information Systems

Employee

Self Services

Consolidation of Data

Centers

SAP Introduction

Expert-systems

Operation-

Systems

IT

load-variable tariffing

Regu

lation

§7AGEnWG

GPKEGELIG685

Systemsplit

ITO

2012 2014

§

Pro

jec

ts WiMUNICODE B2C

Platform C&I-

Sales

Analytics

IDEX

Template

Billing

Core-

Template

CRMCCC for

Deregulation

SEPA

Smart-Bus.

SM Rollout

3rd party

Home-

Connection

Consolidation

SAP Usage

Strategy

EDM

DMS/

Archiving

Core-IntegrationWorkforce

Energytrade

M&A

New Business

models

2016

g/wMSB

Social Layer

Meter Operator

Law

Feed-In

processes

WiM

MsbG

Gabi Gas 2

MaBis 2.0Neues EEG

Strom NZV

2018

Multi-

Channel

§

Challenges:

Complexity

Costs

Flexibility

Agility

Lifecycle

Service

Cloud

Media

Mobility

Analytics

IT-spend


© A. Flik

Sharing Economy

Smart Contracts

Smart Devices

➢New Business Models

without intermediaries

➢Decentral storage of

transaction-data increases

the safety level

➢ Lots of use-cases are

possible:

Payment, Digitalization of

Contracts & Content

➢ Physical factors (Energy-

Transactions)

➢ Payment in Crypto-Currency

➢Regulatory boundary

conditionsCentral Decentral

De

ce

ntr

al

Ce

ntr

al

Energy Sales

(classical Utility)

e.q. MotelOne, Sixt

Trading Platform

e.q. Airbnb, Uber

Energy

Distribution

(pure sales

company)

Smart Contracts

decentral

documentation

of decentral

transactions

Service Delivery

Tra

ns

ac

tio

n

pa

ym

en

t

Source: PwC


© A. Flik

A comprehensive look into the future

➢ The business model of the classic energy provider no longer

exists

➢ All players are connected via a digital energy network

➢ Commodity processes are standardized and automated across

the enterprise in the cloud

➢ Agile product innovations and comprehensive market

intelligence are critical success factors in the new energy world

➢ New technology (e.g. In-memory) allows drastic efficiency gains

and new business models through forward-looking, self-

optimizing processes

Source. SAP/S. Engelhardt

Documents

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