Smart Energy: The Backbone of the Energy Revolution - Smart Energy Systems October 2020 - Aalto Capital
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Smart Energy: The Backbone of the
Energy Revolution
Smart Energy Systems
October 2020
Introduction
of Europeans agree that climate change is a
93% serious threat
x2 Electricity demand expected to as much as
double by 2050
of proposed smart city projects introduced in
45% 2015 involved the energy sector
Introduction: Recent news:
The energy sector has become monitoring – across the nation and in ➢ Emerson acquires OSI for
one of interest and activity in recent homes and businesses. Becoming $1.6b in August 2020.
years due to contentious issues such more aware of inefficiencies and
as climate change and the limited fluctuations allows consumers to cut
stores of fossil fuels. A 2019 survey by back on energy expenditure and
➢ Iberdrola to open Global
the European Commission showed suppliers to tailor demand. In the Smartgrid Innovation Hub
93% of Europeans see climate change future, smart energy systems will allow in Bilbao, Spain, set to
as a serious threat1. With each record- the world to cut back on CO2 emissions start operating in 2021.
breaking summer heatwave, it has and integrate renewable energy into
become increasingly evident just how the grid more effectively and
important it is to reduce our carbon economically.
➢ Reserve Power Holdings
footprint. buys Flexitricity for
The world at large is becoming £15.2m, September 2020.
Unfortunately, cutting down on more connected and autonomised,
carbon emissions and converting to and the energy sector will not be left
renewable power generation poses behind. In 2015, 45% of smart city way in which we power our lives.
substantial challenges, and will not projects introduced involved the Moreover, the global smart energy
happen overnight nor seamlessly. The energy sector3. The development of market was estimated to be worth
energy system that has served many any ‘smart’ sector requires effective $24b in 2018 and is expected to
countries for the past 140 years is supply of electricity to enable data increase to $60b by 20234.
antiquated and inflexible; it is not communication and digitalisation –
receptive to change. Adding to the blackouts could be detrimental to But what exactly is smart energy,
fray, energy consumption could smart cities. Consistency is and will and how is it being used to tackle
double by 20502, reaching capacities continue to be the priority of energy climate change, energy demand, and
too high for the current system. supply, but smart energy provides a smart city development?
path for increased demand to
So how do we smoothly ultimately result in a decreased carbon 1 European Commission, Eurobarometer
transition into a more adaptable footprint. (2019)
system? 2 The Drax Group, Great Britain’s Energy
The development of technology (R)Evolution
Currently, smart energy provides in and around the energy sector has 3 Liang et al (2020)
opportunities for better energy the opportunity to greatly change the 4 Markets and Markets report
1
Understanding Smart Energy
What is a smart energy system?
Firstly, it is important to energy usage to reduce consumption, collected data are common themes
understand the existing energy and hence spending, as well as system across many sectors undergoing
network. This network consists of losses. Some sources also describe a significant growth. In the energy
energy generators which produce smart energy system as one which is sector, autonomation makes for
electricity and gas either by burning fully fueled by clean or even just significantly faster response times and
fossil fuels or using renewable energy. renewable energy. The overarching hence, more economical and
These suppliers then send this energy term ‘smart energy system’ can environmentally-friendly energy
into the national grid, a high-capacity typically be divided into two branches: supply. The ability to instantaneously
network of power lines and pipelines consumer smart energy systems (in meet changes in demand also creates
for transporting electricity and gas homes, offices, factories, etc) and a more reliable energy source.
across the country. The national grid smart energy systems in the grid. The
network is managed by large two are highly connected and
companies like National Grid in interactive, and smart grid systems
England or SP Energy Networks in tend to build onto local, consumer
Southern Scotland. Distribution systems. For the purpose of this
Smart energy
network operators (DNOs) then step report, ‘consumer smart energy
down the high voltages and distribute systems’ may be referred to as ‘smart
energy locally for consumer use. energy in the home’ (though it should
National transmission companies and be noted that this also applies to Smart Meter Smart Grids
DNOs are responsible for upkeeping offices, factories, or other consumers),
the infrastructure on a national and while ‘smart energy systems in the
local level, respectively. Finally, your grid’ may be referred to as ‘smart
monthly energy bill comes from grids.’
companies known as ‘energy
providers’ such as British Gas or SSE. Smart energy systems also
typically imply a level of digitalisation
A smart energy system is a and autonomation. Compilation of
system which measures and controls data and industry optimization from
Source: Smart Energy GB
2
Source: Vaclav Smil (2017) and BP Statistical Review of
World Energy via OurWorldInData.org/energy
What is a smart energy system (cont.)?
Smart energy systems in the Smart grid systems collect data advanced. To keep up with these
home are already well on their way to from smart meters and smart changes, excess and waste electricity
being commonplace in homes across buildings. Data shared by smart can be redistributed to compensate
the UK thanks to the integration of meters to energy suppliers can then for growing demand.
smart meters. Energy meters have be shared with generators. The data
been around for almost 50 years, but can then be used to alter energy Generally speaking, this covers
until quite recently, have merely production in real time by assessing the extent of widespread smart energy
measured electricity, voltage, current, end-user demand. By analysing the systems. It is very important for smart
and/or power consumption. More shared data, generators and suppliers energy systems to be able to evolve
recently, these have been replaced know when energy is most likely to be with growing demand and new
with smart meters, which gather data at its peak in an area and when it is technology; renewable or otherwise.
to show exactly how much households expected to be low; this allows
are spending each day, and which suppliers to manage supply and cut
appliances are the most expensive to back on waste energy at low demand
run. These meters rely on ‘advanced times. Taking that a step further,
metering infrastructure’ (AMI) and can automated smart systems can react
communicate directly with your immediately to increase supply (either
supplier to determine your bill at the by generating more or by drawing
end of each month. This makes the from energy storage facilities),
Some define smart energy
extra step of reporting your meter removing the need to produce much systems as being fully
readings each month obsolete. It also more than consumers are using at a fuelled by renewable
makes readings more accurate, as the given time. These (currently small)
supplier knows exactly how much adjustments are likely to make a big energy. How do smart
energy is being used at a given difference in the future, since energy systems work with
moment and can compare it directly electricity demand could as much as
with the price of energy at that time, double by 2050 as electric vehicles
renewable energy?
rather than averaged across the (EVs) become more widespread and
month. This system, hence, would smart buildings, smart transportation,
reward consumers who use energy at and similar technologies become more
inexpensive, low-demand times.
3
Smart Energy and Renewables
Smart energy and renewables:
Solar and wind power are some the peaks in the mornings and
of the most popular renewables on the evenings when consumers are home
Bulb recently launched its market, but the sun does not always from work, demand fluctuations still
services in Texas and has shine, and the wind does not always tend to vary greatly from time and
already gained 5,000 new blow (and is incredibly varied in its location. Poor planning or a lack of
customers. intensity for that matter). Renewable resources can lead to blackouts or a
energy needs an approach for weakened supply. Adding renewable
integration and for meeting power energy into the mix creates even more
demand daily and year-round. uncertainty, as the supply side is not
based on demand and is quite literally
The rise of renewable energy as changeable as the wind. A more
suppliers such as Bulb, Octopus autonomised system, hence, becomes
Octopus Energy recently Energy, Ecotricity, Good Energy, and necessary for directing power where it
acquired Evolve Energy in Ovo, as well as the push to include is needed and when.
more renewable sources in larger
Texas for $5m, launching
companies like British Gas, Scottish In the Orkney Islands, Scottish
its own expansion into
Power, and E.ON, is not just a result of and Southern Energy Networks
the US. government tariff incentives. Distribution (SSEN) oversaw Britain’s
Consumers are becoming more first smart-grid renewable-energy
conscientious of the environment and integration, a project started in 2009
of their carbon footprints, and but which reached its integration
renewable generators and suppliers capacity in 2012. The Orkney system
The Orkney Islands are are growing fast because of it. relies on an Active Network
able to export renewable Management (ANM) system, which
Digitalisation is especially takes in continuous real-time
energy to the mainland important within the renewable side
(as of September 2020) measurements and calculates
of smart energy systems. Consumer electricity consumption so it can alert
via a 220MW energy demand is volatile. Though the generators to cut back on or increase
transmission cable. general curve over the course of a day supply.
can be mapped to take into account
4
Smart energy and renewables (cont.):
The Orkneys are well positioned Balancing Mechanism (BM) (a smart
for renewable energy generation given grid platform) in December 2019,
the presence of strong winds year- adding small providers and even a few The UK aims to bring
round and strong tides. By 2016, the customers and independent energy green house gas
Orkneys were producing 120% of their aggregators to its user-base. The BM
total electricity needs. monitors real-time demand and meets
emissions to net-zero by
it using the input energy from big and 2050.
In 2019, SSEN received approval small generators, allowing small
from the Office of Gas and Energy renewable energy generators to be
Markets (Ofgem) to install a 220MW more easily incorporated into the
transmission cable between Orkney overall supply.
and the mainland, one of the steps
needed to upgrade the network. As of In addition to new small and large
the 23rd September 2020, the renewable energy integration, smart GE announced it will stop
transmission cable and coinciding energy systems also offer traditional selling parts to coal-fired
upgrades were completed, and excess fossil fuel fed energy producers an power plants, shifting its
energy distributed to the mainland5. easier transition for their existing sites.
As sections of traditional power plants
focus to supplying
The Orkneys’ grid is a good are converted, smart systems can be renewable generators.
example of why it is important for relied on to adjust the supply ratio as
these systems to be adaptable for needed to best incorporate the
future needs; as our technology renewable energy.
improves and future innovation
determines better ways for the smart Autonomised smart energy
grid to operate and for clean energy to systems are the only way to balance
be generated, components will need demand and supply through the
to be integrated seamlessly into the transition to renewable energy. These
network. systems, acting instantaneously, can
help to tailor unreliable renewable 5
Networks are being put into place Current news, Britain's first smart grid
energy generation to meet consumers’ to open connection applications
and trialled throughout the UK and needs and will be vital at all stages of again, 2020
Europe. National Grid expanded its the renewable energy revolution.
5
Government Recognition
Government recognition:
One of the big questions Only then will renewables be go. Though Scotland generated 90% of
regarding the implementation of affordable for all consumers. its electricity demand from renewable
renewables, is the willingness of the Eventually, there will be enough energy in 20198, electricity demand
consumer. Though many consumers generation sites and enough will climb as the number of EVs
are becoming more aware of the supporting infrastructure that tariffs overtakes that of non-EVs and electric
environmental impact their everyday will no longer be necessary, and gas heating becomes more commonplace.
choices have, not all consumers can can be phased out. Furthermore, EV charging stations will
afford the luxury of pursuing need to be distributed more
In June 2019, the UK became the
environmentally friendly, and typically consistently, since EVs cannot yet
first major economy to mandate net-
more expensive, practices. This is travel as far as petrol-fuelled vehicles
zero greenhouse gas emissions by
especially true in the energy sector, and take much longer to recharge.
2050. Scotland has announced even
where renewables are more expensive These stations will be significantly
loftier goals in its net-zero plan, aiming
due to new generation sites and more effective if connected to an
to be ahead of the deadline by 5 years.
infrastructure needing to be built to overarching smart system, allowing
By 2019, the UK had already reduced
meet demand and replace existing drivers to find chargers and pay with
emissions by 42% as compared to
fossil fuel facilities. Gas often remains ease, redirecting power from stations
1990 levels, while growing the
the cheaper option. This affordability that are not in use to those that are.
economy by 72%, and it expects to see
issue makes government incentives The same is true for distributing
the number of jobs created by
important to ensure widespread energy within homes and throughout
renewable energy (“green collar jobs”)
renewable energy conversion. Though neighbourhoods. Electricity will need
reach two million by 2030. Moreover,
some believe government tariffs are to be allocated as efficiently as
the government expects the value of
the key to promoting consumer possible, and hence, the practical side
exports from the low carbon economy
conversion, government policy and of the renewable energy policy will
to grow to £170b over the next ten
investment in the renewable sector require the implementation of smart
years6. Furthering these goals, the UK
may be more important, as it will build energy systems.
also plans to move forward the ban on
the infrastructure and make
the sale of new petrol, diesel, and
renewable energy widely accessible.
hybrid vehicles from 2040 to 20357.
Arguably, renewable energy needs 6 UK Government news story
There is a lot of action towards 7
government policy and investment to BBC article
conversion to a net-zero world, but 8 Scottish Renewables statistics
bridge the gap caused by
implementation still has some way to
infrastructure implementation costs.
6
225 million smart meters are expected in the EU by 2024
Cross-border smart grids are at the forefront of EU grid design
European Commission to invest €998m into smart grids
Government recognition (cont.):
It appears the UK government number of projects are working to demonstrates just how important
understands this – it aims to have a build a network: SINCRO.GRID operate smart energy systems are perceived to
total of 51.6 million smart meters in Slovenia and Croatia, ACON in be by governments. There is no
installed by 2024. Moreover, Ofgem Czechia and Slovakia, Smart Border questioning the presence of smart
has proposed £25b to transform Initiative in France and Germany, energy systems in the future, but
energy networks and make them more Danube InGrid in Hungary and rather the form their presence will
conducive to delivering clean energy Slovakia, Data Bridge in the Baltics, take.
to consumers9. This will aid greatly in Denmark, Finland, and France, and
creating a smarter grid network, with Cross-Border Flexibility Project
greater interaction and simpler between Estonia and Finland11.
integration for delivery of renewable
EU Member States announced a
energy.
Commission proposal in October 2020
Like the UK, many other to invest €998m in energy
countries are making policy changes to infrastructure projects that connect
push for net-zero carbon. In recent Europe. €720m has been allocated to
months, governments around the the Baltic Synchronisation Project
world have been paying more linking Estonia, Latvia, Lithuania, and
attention to their climate change Poland, an additional €102m given to
policy – a consequence of the Danube InGrid, and the rest will go to
pandemic and coinciding disturbances similar projects, including the first
such as record wildfires and storms. grant for a CO2 transport project for
Belgian and Dutch ports12. These
The European Commission
projects will shape the energy market
reported that there will be nearly 225
as it progresses closer and closer to
million smart meters in the EU by
removing fossil fuels altogether,
2024, equivalent to about €47b worth 9 Ofgem press release
further engraining the EU as a single,
of investment and representing almost 10 European Commission press release
united, progressive entity.
77% of European consumers10. 11 European Commission press release
This evidence of significant 12 European Commission press release
Within the EU, cross-border
government initiative and investment
smart grids are a necessity, and a
7
The Smart Energy Market
Drax
Power
Station
The smart energy market
Smart energy comes in many unexpected lows), and compensate for
More about Drax:
shapes and sizes. Even as suppliers like fluctuations in renewable generation. Drax power station is
Ecotricity, Good Energy, and Bulb push
for and invest in creating new Zenobe is the largest leading the way towards
independent owner and operator of
renewables infrastructure, existing
battery storage in the UK. Their
a coal-free future. As the
generators are making a greater effort
to adapt their facilities. As the world batteries serve commercial and largest power station in
moves away from using fossil fuels, industrial clients as well as utilities and the UK, it is one of the
companies like the Drax Group and infrastructure, providing more reliable,
consistent power supply. largest decarbonisation
EDF Energy will likely want to
repurpose those facilities from gas and projects in Europe. It
Large-scale battery storage for
coal power to biogas or other clean the grid is a key part of the transition converted its fourth coal
energy generation techniques. Smart
grid technology will not only enable
to renewables. Energy demand is unit to use biomass in
highly volatile, and traditional
renewables to be added more generators will burn an excess to
2018, allowing two thirds
effectively but also enable traditional overcompensate in case of of the power station to
producers to transition more unexpected spikes in demand.
smoothly. On the production end, produce renewable
Renewable energy exacerbates this
producers will need to rebuild and volatility since the supply itself is no electricity. They have
repurpose their existing sites, while on
the user’s end, new connections may
longer steady or reliable, and hence, two remaining coal
energy storage becomes very
need to be put in place to handle the important in bridging the gaps
generating units left and
change in supply. between supply peaks and demand expect to be coal free
Energy storage is another key peaks. before 203013.
part of smart grid design, in particular
for renewable energy integration /
conversion. Energy storage at different
points on the grid helps to offset 13 Drax press release
fluctuations in energy usage (such as
unexpected peaks), cut down on
energy losses (taking energy in at
8
The smart energy market (cont.):
Arenko, is focusing their country participated in the clapping Fulcrum also deliver end-to-end
technology on autonomising the for carers at 8pm on 23 April 2020, electric vehicle (EV) charging solutions
supply response in battery storage. Its and at around 8:02pm, all those for commercial and destination
platform integrates utility / people went inside, turned on the TV, charging across the nation. Its
commercial battery storage into the put the kettle on, and / or put dinner installation includes network
grid and reads demand in second-to- in the oven. This simultaneous re- connections, metering installation,
second trading intervals so that it can entering caused a 950MW spike in in power substation installation, and
release energy immediately when energy demand across the nation14, cabling at all voltages, making its
demand requires. At times of low and Arenko’s technology was able to services in EV charging comprehensive
demand, Arenko’s technology allows detect that spike and release enough and grid connected. Fulcrum sees itself
battery operators to buy renewable energy to cover 10% of the necessary aligned with the progression of net-
energy when wholesale prices are low supply to avoid blackout. The clapping zero incentives, and it expects its
or even negative. Operators can then for carers spike demonstrated the position in the market to be highly
sell that energy back to the grid at high importance of such technology, and opportunistic as new technology
demand times (when wholesale prices just how useful it can be for the grid. creates the need for new utility
are positive) to bridge the gap that connections. Fulcrum will additionally
renewable energy may not be able to As the supply of energy becomes be well positioned to repurpose gas
cover. This can make both the storage more diversified and digitised, updates infrastructure to suit more sustainable
and release of electricity into the grid to utilities connections will also need fuels such as green hydrogen. These
profitable, thanks to the recent to be updated. Fulcrum Utilities, a UK services will be important for small-
development of negative wholesale company listed on the AIM, is a and large-scale smart grid and
prices. Arenko’s platform autonomises utilities infrastructure provider. This renewable energy developments.
the process to maximise returns and year, Fulcrum announced a change in
react immediately to changes in strategy in the hopes to better align
demand. For consumers, its itself with the drive towards net-zero
technology reduces the volatility of carbon emissions. In addition to its
supply-response and, hence, over-all traditional gas and electric offerings, 14 Arenko news
volatility. Fulcrum provides smart metering
installations and multi-utility
In April, when clapping for conversion to aid companies in their
carers started, Arenko’s technology transition to renewable generation.
proved its worth. Most people in the
92019 Revenue: £46.1m
Market Cap (AIM): $89.95m (Oct 14 2020)
OVO 2019 Revenue: £1bn+19
2019 Revenue: £120m
Market Cap (AIM): $27.96m (Oct 14 2020)
The smart energy market (cont.):
Fulcrum and similar companies an EV charging app which launched its
More about Ovo:
are likely to become increasingly EV charging payments app, Zap-Pay, in
important in the coming years as the September 2020, making its platform OVO group, founded in
UK transitions to its net-zero goals and more connected and comprehensive18. 2009, has grown
EVs become more widespread. As these technologies work more
smoothly with each other and with
quickly in the past 11
EV charging integration is energy suppliers / generators, more years; it is active in the
another growing part of smart grid
systems. EVs have been especially
electricity can be conserved and UK, France, Spain, and
redistributed to parts of the local grid
prominent in recent headlines, with with higher demand. Australia and has over
Uber announcing its £5m funding for 250 smart home
EV charging infrastructure in London15, Kaluza, part of the OVO group,
SSE imploring the Department for introduced their vehicle-to-grid (V2G) engineers. Ovo
Transport to make it mandatory for solution in 201819. Kaluza’s platform recently acquired SSE’s
fleets to switch to electric by 203016, connects EV smart charging stations to
and Octopus energy just recently the grid via the DNO Western Power
household retail
passing its 1,000 EV charger Distribution (WPD) to provide greater business. It also
milestone17. This follows the UK flexibility. Kaluza was formerly focused acquired Spark Energy
moving forward the ban on the sale of solely on connecting Sonnen (a
petrol-, diesel-, and hybrid-fuelled German company) batteries in homes in 2018, which it is
vehicles to 2035, and the growing to WPD’s local grid. Its platform allows now merging with its
comprehension that our transit habits the grid to communicate with local
are one of the worst for the batteries to regulate energy supply
SSE branch, taking the
environment. during fluctuations (releasing energy name of SSE20.
at peaks). Kaluza’s recent addition of
Good Energy is a UK supplier grid-connected transport devices 15 Guardian article
which is also diversifying its offerings provides greater flexibility to the grid 16 Current news article
into the EV market. The renewable and allows storage and transport 17 Current news article
energy provider acquired the majority devices to work together at a local 18 Good Energy, LSE announcement
holding in Next Green Car Ltd (NGCL) level. 19 OVO Group, Our Business Key Facts
in June of 2020. NGCL owns Zap-Map, 20 Spark Energy website
10The smart energy market (cont.):
Another company, Chameleon the wholesale energy market through and regulate exchanges of energy
technologies has launched a platform their platform21. directly between generators and
with Bulb and Samsung which gathers consumers using blockchain
users’ data from their smart meters to Similarly, WePower specifically technology to guarantee security.
track usage on in-home displays (IHDs) sells green energy to businesses. Their Energy would become significantly
and cloud connected devices. Users push to convert commercial and cheaper for consumers, as they would
can also connect their smart home industrial companies to renewable be able to access energy at wholesale
controls to be adjusted as desired energy covers about two thirds of prices, and it would also be beneficial
from smart phones and tables. Further overall energy consumption which for generators, as their energy supply
autonomation which allows for greater most green suppliers do not focus on. would be efficiently allocated to
control and conservation of power. WePower cuts out the middleman and reduce waste.
allows companies to purchase green
Other efforts to create a more power more directly and more
efficient grid look at the traditional economically. One day, these smaller
structure of the network itself. A trading platforms could be expanded
number of efforts deal with the into a larger grid system, so that all
localisation of grids. If your neighbour energy is traded.
generates excess electricity from solar
New data from Kaluza
panels on their roof, that excess TenneT, in the Netherlands and reveals AI-powered smart
energy could be transferred to you Germany, is one company working on
a full-gird energy trading platform. It homes could save the
and the rest of the neighbourhood.
uses blockchain22 (known widely as the energy industry £2.5b.
SSEN and SP Energy Networks technology that enables bitcoin) to
announced an agreement with create a secure sequence in the smart
Origami Energy to begin three trials grid. The use of blockchain would
using their P2P trading platform in allow both consumers, generators,
2019. Origami’s platform, aggregators, and other grid users to
21
Renewables+, uses a real-time securely exchange information about Origami news article
22 For more info, please see Aalto’s Big
machine learning program to optimise balancing supply, usage, and
energy trading. It relies on consumer payments. Energy trading will likely be Data and the Music Industry Insights
data to determine demand and supply largely autonomised in the future, so
and to enable users to interact with that AI and advanced algorithms settle
11Investment in Smart Energy
Investment in smart energy:
The energy market is busy; develop from its innovation hub in Anesco, which was added in 2019.
globally, oil and gas remain the 202123. Quinbrook Infrastructure Partners has
dominant energy source while interest invested over $8b in renewable energy
in renewables is ever on the rise. UK-based Octopus Energy has infrastructure through the past 30
Smart energy systems and also announced plans to build an years and operates in the UK, USA, and
technologies are already being energy innovation hub in Manchester. Australia. Alpiq has announced it will
integrated in order to simplify the It expects the technology, data be focusing more on renewable
transition to a zero-carbon world. science, and AI centre to be key in the energy investments in its home-
Smart energy holds immense promise development of smart grid technology. country, Switzerland, and mainland
for the future of the power grid, but it Its cloud-based energy platform, Europe25.
still has a way to go and will continue Kraken, is already used by companies
to develop to fit the needs of the such as E.ON and Good Energy to
consumer. It is an area of significant facilitate interaction across the grid,
interest, and recent investment and its recent acquisition of Evolve
activity demonstrates this. Energy for $5m will help it push
Kraken into the US market. Octopus’s
Spanish utility giant, Iberdrola, is CEO also recently announced it would
currently constructing a global smart begin raising capital in 2021 to
grid innovation hub at their continue its expansion into the US
distribution operation centre in Bilbao, market24.
Spain. The hub is expected to open in
spring 2021 and is intended to bring In September 2020, Alpiq Digital
together suppliers and collaborators sold Flexitricity to Quinbrook for CHF
from around the world. 18m. Flexitricity is a UK-based
company controlling a portfolio of
Iberdrola, whose subsidiaries demand-side response companies.
include Scottish Power and Avangrid Flexitricity uses a virtual power plant
(USA), increased its annual investment to meet demand and additionally
to €280m in 2019 and has already control a number of energy storage 23 Iberdrola press release
identified 120 new smart grid projects facilities, including 70MW storage for 24 Octopus Energy announcement
worth €110m which it hopes to Gresham House, and 19.5MW for 25 Quinbrook press release
12Start-up’s to watch Location Funding (m)
Moixa UK £24.3
Upside Energy UK £6.2
Electron UK £1.4
Depsys Switzerland $18.4
Zenobe UK £100
BBOXX UK $100.1
Chameleon UK -
Limejump UK -
Lition Germany -
GreenCom Germany -
Equiwatt UK -
Grid Singularity Germany -
FlexiDAO Spain -
Verv UK -
Investment in smart energy (cont.):
Greenbird Integration Technology Main Market of the London Stock
is a Norwegian company providing a Exchange23.
cloud-based energy data integration In the UK, Aberdeen Standard
platform. Greenbird completed a €5m Investments invested £48m in smart
series B funding round in September, metering installation through a
demonstrating there are promising partnership with Calvin Capital.
new technologies emerging in the There is a lot of activity in the
smart energy market26. smart energy subsector. Moreover,
In addition to grid investments, there are a number of companies with
Lithuania-based Ignitis Grupe secured new emerging technologies and
a €110m loan from the European platforms which will be very attractive
Investment Bank (EIB) to help install its to larger players in the energy industry
smart meters and IT solutions for the who are looking to set their business
energy distribution operator, Energijos up for a key position in the future grid.
Skirstymo Operatorius (ESO)27. The For the smart grid to function
company provides production, supply, smoothly, there will likely be
and maintenance of power and heat in consolidation, as too many energy
Lithuania, Latvia, Estonia, Poland, and trading platforms or other smart
Finland. Ignitis has their own technologies will merely complicate
innovation fund, which they invest in communication and data analysis
the UK, Norway, France, and Israel. more.
The funding from the EIB has
been followed by Ignitis’ IPO onto the
Nasdaq Vilnius in October 2020, for
which the company raised €450m and
became the largest IPO in the Baltics.
The company’s 20 million shares will 26 Greenbird new release
trade on the Main Trading List of 27 EIB news release
Nasdaq Vilnius and its global 28 Ignitis Group news release
depository receipts will trade on the
13Conclusion
Conclusion:
Smart energy systems are technology and software will need to
More recent news:
expected to be the link, not only be integrated to accommodate ➢ Software firm Teletrac
between generators and consumers, additional renewable energy
but also the present and the future. generators (from new offshore wind Navman launched its
New technology involving blockchain, farms to solar cells on residential new AI tool designed
P2P lending, and streamlined battery roofs), to convert coal or fossil fuel
communication holds promising burning sites, and to keep up with the
to give fleet operators
potential for better integrated growing power demand. more insight into EV
systems, cutting back CO2 emissions, charging requirements.
and saving consumers money. Big In an age where data is the most
valuable commodity, smart energy
energy companies such as British Gas,
systems will hold immense insight for
➢ Emerson Electric
National Grid, and E.ON are working to
create and adjust to a more integrated the energy sector and how it can best acquires OSI Inc. for
grid. There is significant potential for adapt to the renewables transition. $1.6b.
consolidation among most Smart energy is aligned with world
technologies in the smart energy autonomation and will benefit as ➢ Bulb launches UK’s first
market due to the need for efficient renewable energy becomes cheaper
and money moves out of the oil and green, smart Pay-As-
communication and fast response to
demand fluctuations. gas industry. You-Go (PAYG)
It may seem like investment is The energy sector is important platform.
and active, and smart energy systems
restricted to large institutions and
will need to progress hand in hand ➢ The UK government is
government organisations, but the
field is multifaceted and there are with renewables to achieve zero- set to release its net-
carbon goals, making it a vital
many technologies emerging that will
subsector. Though the push to reach
zero strategy ahead of
contribute to the evolving grid
structure. New battery storage, smart net-zero goals is driving smart energy the COP26.
EV charging ports, and linkable home change, it also makes it clear that
appliances will all be important as smart energy is indeed the backbone
smart meters become more advanced of the energy revolution and the
and connected. As smart grids opportunity should not be overlooked.
develop, new communication
14Aalto Capital
Smart Energy Discussion
October 2020
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