FlexPond Marc Crauwels VP Utility Sales September 2019 Asian - - PowerPoint PPT Presentation

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Marc Crauwels – VP Utility Sales September 2019 Asian Utility Week – Kuala Lumpur - Malaysia

FlexPond™

The integration of DR into a Utility Service Division

Energy supply Wholesal e energy Energy insight Energy

• ptimisation

Energy solutions

Centrica Business Solutions has been created to develop new thinking, new technologies and new ways of working to help our customers.

We assist organisations to improve their operational efficiency, ensure site resilience and unlock new sources of value with energy insight, optimisation and technical solutions.

2022 annual revenue target

£1bn >2k

Enterprise customers

£700m

Investment to 2020

Who am I?

• Marc Crauwels
• marc.crauwels@admiraldynamics.com
• +32 475 70 94 62
• VP Utility Sales Centrica Business Solutions
• + 17 years in financial and IT services
• + 25 years in energy and utilities
• Goal: to help companies think in a disruptive

manner

The integration of Demand Response into a Utility DSM service division

Challenge 1: How a production driven environment has changed to a demand driven environment!

TIME POWER

FORECAST TOTAL LOAD

In the OLD PARAD ADIG IGM, M, the starti ting g point t for the power r market t was the load forecast on the electricity grids…

THE PARADIGM SHIFT

TIME

TRACKING PRODUCTION

POWER

…and centralized, fossil fuel and nuclear based power plants, were scheduled to track this load forecast...

FORECAST TOTAL LOAD

THE PARADIGM SHIFT

TIME

TRACKING PRODUCTION

POWER

NET GRID IMBALANCE

POWER

TIME

…resulting in a (mostly) balanced and stable power grid.

FORECAST TOTAL LOAD

THE PARADIGM SHIFT

TIME

TRACKING PRODUCTION

POWER

FORECAST PRODUCTION

X

In the NEW PARADIGM, due to renewable penetration, the starting point for the power market is the load and production forecast on the electricity grids…

FORECAST TOTAL LOAD

THE PARADIGM SHIFT

TIME

TRACKING & FORECAST PRODUCTION

POWER

NET GRID IMBALANCE

POWER

TIME

X

…which is threatening grid stability, especially in Europe. The burning question is: how can we resolve this in a reliable and sustainable way?

FORECAST TOTAL LOAD

THE PARADIGM SHIFT

TIME POWER

POWER

TIME

FORECAST & TRAC RACKING TOTAL LOAD

V

TRACKING & FORECAST PRODUCTION

THE PARADIGM SHIFT

The most sustainable (and as it happens: reliable and cost-effective) way to keep the grid in balance, is not to build more power plants, but to adjust power demand to available production

!

NET GRID IMBALANCE

Challenge 2: The speed of change of the Utilities industry and the depth of change!

We’re in the middle of the Fourth Industrial Revolution, and it’s changing everything

The digital revolution and global economic transformation are putting markets under pressure like never before, with the velocity, scope and breadth of change being felt across all aspects of life. Scope

The impact is felt across all areas

• f global businesses

Breadth

The extent and depth of change to entire systems is pronounced

Velocity

The current speed of change has no historical precedent

13

Businesses are struggling with this complexity, while facing the demands

• f growth, cost control and risk

76%

• f businesses view

innovation in energy technology as a priority

66%

• f businesses are concerned

about growing energy management complexity

33%

• f customers’ purchasing

choices are influenced by a business’s sustainability

88%

• f businesses view

improving energy efficiency as a priority

UK energy non- commodity costs have risen by over 17% since 2015

30% of global electricity can now be produced from wind and solar PV in the long term

Businesses that have never suffered energy failure underestimate the effect on their revenue by 70%

$287.5 billion invested in global clean energy technologies in 2016

Challenge 3: The EC has given strict targets to decarbonise!

Europe 2020 strategy

Climate change and energy targets by 2020:

• Greenhouse gas emissions 20% lower than 1990 levels
• 20% of energy coming from renewables
• 20% increase in energy efficiency

Green House Gas Emissions

Green House Gas Emissions

Renewable Energy Share

Renewable Energy Share per Country

Primary and Final Energy Consumption

How do Utilities react to these challenges?

Device Level Insights Flexible Generation Energy Storage Flexible Demand CHP

Integrated Solutions Platform Insights Optimisation Solutions Energy Insights with Panoramic Power FlexTreo E-Power

• f individual circuits

Demand Side Management Demand Side Response FlexPond Neas Direct

FlexTract

The good bank: creating an energy services division

There is long list of players trying to establish an energy service division

What kind of traction is there in the market?

2017 European energy majors investments and acquisitions

January March June September September October October Investment Acquisition October November Q1 2017 Q2 2017 Q3 2017 Q4 2017 December December October Source: Wood Mackenzie Power & Renewables Grid Edge Data Hub

European majors make 19 investments in grid edge companies in 2018

Source: Wood Mackenzie Power & Renewables Grid Edge Data Hub

Company acquisitions and majority investments

5 4 3 2 2 1 1 1 5 4 3 2 1

Deal count per European company in 2018

7 6

Source: Wood Mackenzie Power & Renewables Grid Edge Data Hub

Deal count by grid edge market in 2018* and 2017

Energy Storage, 4 DER Developer, 2 Solar, 3 CHP, 1 Thermal Storage, 1 E-mobility, 7 E-mobility, 4 Energy Storage, 1 Demand Respose, 1 Demand Respose, 3 Connected home, 1 Connected home, 1 Residential Retailer , 1 Residential Retailer , 1 Blockchain , 1 Energy efficiency , 1

1 2 3 4 5 6 7 2018 201 7

DEAL COUNT PER COMPANY AND PER GRID EDGE MARKET

Source: Wood Mackenzie Power & Renewables

European energy majors creating American Energy divisions with recent acquisitions

Engie Services with a focus on North America The Group had plans to make €2 billion in investments by the end of 2018 to expand its portfolio for growth in energy services.

Recent acquisitions that can be bundled into Energy Services

+

$335 Million undisclose d undisclose d undisclose d Distributed generation Electric vehicle charging undisclosed undisclosed Companies making up Enel X Acquisitions that make up Engie Services North America

Recent acquisitions that can be bundled into Energy Services

$45 Million1 $300 Million $150 Million

• The three acquisitions that make up Enel X add up to a disclosed value of approximately $495 million.
• Through 2021 Enel plans to spend 1.1 billion euro on Enel X.
• As he three companies come together under the umbrella of Enel X they will begin to offer more integrated services.

$60 Million $212 Million $81.4 Million undisclose d $244 Million Companies making up Centrica Business Solutions (CBS)

Not part of CBS but can provide support

The four acquisitions that make up Centrica Business Solutions add up to a disclosed value

• f approximately $353.4 million (597.4 million

with the Neas Energy acquisition).

undisclose d undisclose d

Source: Wood Mackenzie Power & Renewables, Shell

Shell makes 7 deals in the past two years and partners to provide bundled services

In November 2018 Shell launched “Shell Energy Inside” as part of Shell New Energies, the division tasked with the provision of low carbon solutions.

2018 2017 Acquisition Investment September October December January February May May December

Investments and acquisitions in 2017 and 2018

The service bundles behind the meter optimization of electricity consumption via the intelligent orchestration of e.g. lighting, HVAC, back-up generation, battery energy storage, electric vehicles coupling the offering with the identification of demand response opportunities and retail power supply procurement.

What is Centrica Business Solutions strategy?

How has CBS countered these new market opportunities?

FlexPond™ The leading distributed energy resource management system (DERMS) solution

OFFERING FIGURES AND REFERENCES

We We of

• ffers two pr

prod

• duct

cts:

• FlexPondTM: cloud-based DERMS solution for Utilities
• FlexTreoTM: cloud-based Energy Management Software for large C&I

consumers to reduce power cost and maximize income from DSM

Clien ents

• Elia
• National Grid
• RTE
• 50Hertz
• EDF
• TEPCO
• …..

Capaci city un unde der man management

• 2.8 GW of peak flexible power
• 840 MW of 95% reliable flexible

power, 24/7/365

• R1/Frequency reg:
• R2+R3 / Fast response:
• Intraday/RT market
• Capacity Markets:

> 200 MW > 260 MW > 80 MW > 300 MW

We We pr provide one

• ne service:
• Demand Side Management programs to Commercial & Industrial and

Residential consumers in Belgium, United Kingdom, France, Germany and The Netherlands

FlexPond™ is a comprehensive VPP & DERMS solution, focused on bringing DSM to trading floors of energy suppliers to better balance portfolios

MW

Marke t Energy Supplier xyz

• Primary Reserve

Secondary Reserve Tertairy Reserve Interruptibility Capacity Market Imbalance Market Day-Ahead & Intraday

• ptimisation

FlexPond™ The leading distributed energy resource management system (DERMS) solution

FlexPond™ is a ‘Platform as a Service’, offering the entire chain

Partner Cloud

FlexPond™ The leading distributed energy resource management system (DERMS) solution

FlexPond ™ has a demonstrated track-record, with (i) large utilities, (ii) TSOs and (iii) large industrial consumers

FlexPond™ The leading distributed energy resource management system (DERMS) solution

Thank you

Centrica is in the vanguard of shaping the future – with the customer at the heart of what we do and what we offer.”

Iain Conn, Group Chief Executive, Centrica

www.centricabusinesssolutions.com If you have any questions please contact: marc.crauwels@restore.energy

“