The product development of an innovative energy service for decentralized energy resources requires a coordinated Approach by various stakeholders within a utility company: Sales, Product Management, Portfolio Management, Trading, Balancing Group Management, Business Development, Marketing, …

Entelios has extensive practical experience in the design and implementation of successful utilities’ Demand Response / Virtual Power System sales products for their industrial and commercial power consumers. Based on this structured and proven approach, Entelios offers its support to interested utilities in a joint project to design and pilot such products based on their individual needs.

This complete implementation approach within such a collaborative project typically combines three main steps – that obviously can be adapted according to specific needs.

Step 1: Concept

An overview analysis of the Demand Response potential within the utility customer base creates a first important starting point for the definition of a Demand Response/ Virtual Power System offering for industrial and commercial customers. With its extensive practical experience, Entelios can contribute in various industrial sectors that are relevant for Demand Response.

With a business case 1.0, the initial commercial structure is laid out as the basis for decision-making during the next steps. This first business case will be continuously validated based on practical experiences from the participant interactions.

Together with the utility sales organization, the first suitable customers will be selected and approached to win them as Demand Response participants for a pilot.

Step 2: Pilot

Once the first customers have been contacted, an assessment of their individual flexibility potential from loads, on-site generation and energy storage within the production processes is carried out in a technical workshop lasting up to three hours only. Based on this Information, a first indication of the commercial benefits for the participating customer can be made. If the customer is convinced and motivated to participate, Entelios implements a secure bi-directional communication between the flexibility assets and the Entelios Network Operations Centre (NOC) via the E-Box™. For each utility a separate flexibility pool will be established to guarantee information security and transparent reporting.

The first assessment of the flexibility potential will be validated through technical tests (live switching events) in order to check the quality of the connection and understand the responsiveness of the individual flexibility assets (gradients, continuity, etc.), validation of the identified Demand Response potential.

In parallel, based on the operating model, the required business processes are established at the utility. To be fully prepared for the start of the commercial use and subsequent scaling, the interfaces to the Entelios NOC are established and the reporting content and format defined.

Step 3: Scaling

Additional flexibility will be aggregated and for the first time commercially used as soon as the required volume is reached, e.g. for minimum bidding criteria at reserve markets. The necessary preparations to start commercialization are finalized, e.g. pre-qualification of the flexibility assets and the pool with the respective TSO in case of reserve energy.

The objective at the end of step 3 is to have generated a substantial volume of aggregated flexibility in a dedicated pool with a stable operational model implemented, and to have won customer reference cases from various types of industries as a basis for a further successful go-to-market.