16 Jun How you work in the future is going to change forever
Change is the only constant. And, our market is changing at every point along the value chain; from the way we generate, who provides the power (the generator or customer), the way we retail, the way we buy and interestingly and for the first time ever, the way we store.
These changes are quite simply turning the market on its head, from a centrally controlled one-way flow grid, to a dynamic distributed interactive energy system. The change in the generation mix (fossil fuels, renewables) is creating both negative prices & super high prices. Customers are now generating, and supplying power back to the grid. In fact, whole communities are taking up self-supply. Discussion around DSR is almost at fever pitch, with everybody in some way looking at a way of operating more dynamically with the grid. What started as a way for people to shut off at high prices, is fast moving into shut down, use more or maybe even store to sell back later.
How we work in the future is changing. Here’s how we think things are moving…
#nomoresilos. Everybody has to work together. It will be really hard to operate in a silo in this new world. How can customers who are self-generating, or using storage, not link procurement with energy engineering/efficiency in some way? How can a supplier not get an understanding of possible changes, if they in turn are trying to balance the portfolio in the wholesale market? The truth is they can’t.
#billingisover. Say hello to dynamic digital billing. Finding out what your energy bill was at the end of the month is going to be relegated to the past, like the Walkman Music Player.. Customers, suppliers and everybody in the supply chain will need to know costs to date and short-term costs at any time, in order to take advantage of any opportunities. Not just commodity costs – all costs, including third party elements. Nor just costs on a monthly basis, but more frequently, such as what are they today between 3-7pm? Am I long, am I short, should I take advantage of a wholesale DSR event or should I wait for the Red Zone Avoidance? How would my actions impact my supplier’s portfolio in the wholesale market, and what does that mean to me?
#scalecasting. Say hello to #scalecasting a new decentralised way of forecasting at the site level, based on real operational data, and real actions which real people are about to take. Get used to bigger swings in wholesale prices as we move from surplus at times of renewables and deficit when the wind stops blowing. The way we forecast today is to put sites into groups/portfolios and correlate to weather or some other factor and roll the model forward. There are some exceptionally sophisticated models out there – but they are not likely to fair well in a world where a customer is self-generating, storing or taking action against a price event? The new world of forecasting is going to be a lot more inclusive – it’s going to be a lot more operational, where on-site teams are ultimately going to tell the energy buyers what’s happening, who in turn will roll up to the supplier, who in turn will roll up to the portfolio.
The scale of change is unprecedented yet we are still trying to manage the risk of this dynamic change with our old models of working, adding “risk premiums” onto costs, throwing renewable energy away, or heavily discount on-site generators.
It’s now time to change the way we think and work, to embrace this new world we’re all in. The technology available to us goes beyond what we believed possible 10-15 years ago
So no more portals, no more simply sharing information, or trying to get the same information that was once on piece of paper, over to customers in a web page. Let’s build truly interactive systems and ways of working together.
Welcome to the Hub!
We ask, would a supplier reduce a risk premium if customers could provide better forecasts? Would a customer reduce energy usage if a supplier needed help in balancing a portfolio? And would all parties store more energy at times of surplus so we don’t have to throw our precious renewable energy away.
We all love this market, we all want to make it better, and at Utilidex we believe that together we can build a much #smarterenergyfuture if we embrace these new energy paradigms, rather than trying to hang on to outdated models of working.
For our part, we’ll work hard on delivering beautiful technology that amazes you. Products that will help generators, customers, suppliers or service providers to interact and work more collaboratively than was ever thought possible.