Local utility companies are not commonly associated with a culture of innovation. That may have been true in the past, but things in the energy sector are changing. In recent years, we have seen many of these companies start making real progress in various areas, from the rise in wind and solar power to the support of electric vehicles, battery storage, heat pumps, demand management and variable tariffs. The “boldest” have also launched digitalization initiatives that are essential to the optimal functioning of what will eventually become a new energy system.
The power grid of the future will have to be able to deal with a much higher demand than today. In fact, very soon there will be a tidal wave of electricity demand generated by electric heating and e-mobility to come crashing down on public utilities. But, enormous though it may be, ultimately it is still a wave that they can not only learn to ride successfully, but even turn into an opportunity to make the most of the changes taking place in the energy sector. On April 25-26, many of the utilities that are prepared to benefit from the increased electricity demand attended Handelsblatt’s two-day event in Berlin or online. “Public utilities 2023. At the center of attention” was an excellent opportunity to discuss both the challenges and the possible solutions that the transition to a green energy system offers.
Given that they provide essential services to millions of people, municipal utilities play an important role in both the energy sector and the energy transition, and the ongoing crisis has only increased the focus on them. How do they tackle the risks? How can they make the most of the opportunities? How will the utilities landscape change in the future? These are just some of the main questions that attendees sought to answer in presentations, breakout discussions, and some of them even in informal chats during lunch.
We couldn’t possibly list all the talks that we listened to in Berlin, so suffice it to say that the event covered all key topics that will be vital for the clean energy transition, including market design changes, new business models, future investments, energy efficiency, and safeguarding critical infrastructure. And, of course, what is so close to our hearts: local flexibility.
In his talk, our Head of Business Development, Kornel A. Balogh, discussed how public utilities can maximize local flexibility, prompting his audience to think about how they can tap their full potential to achieve net zero while staying on top in a highly competitive market that is increasingly dominated by renewable energy. Virtual power plants (VPPs) offer a promising way to manage flexibility, but it can be challenging for utilities to select the best service provider, and they may be locked into a long-term commitment. Kornel shared a way in which VPPs actually compete for assets, giving utilities and private asset owners much more freedom and control. Needless to say, Kornel used surfing as a metaphor for how utilities can not only stay afloat but ride the wave.
It is indeed a giant wave, but many utilities are willing to take it on and be on the crest of it. They are taking matters into their own hands to ensure that our energy system is ready for whatever the future may hold in store.
