Smart Grid Solutions
Rapidly declining equipment costs, data analytics and deregulation are driving new business models throughout power markets.
- Solar and windfarm equipment and electronics manufacturing costs are declining due to massive economies of scale.
- Big Data, sensors, controls and wireless networks can make almost any energy-consuming device “smart.”
- Governments are adapting regulations to include new classes of service (such as energy storage), which is allowing technology providers to monetize the value they can create.
In response to these trends, a host of new business models has emerged, including demand response, real-time controls, storage solutions, charging stations and appliances, green power portfolios, net metering, specialized and customized billing services, big data/analytics, and cybersecurity. Fundamentally, there will be five ways to make money in future power markets:
- Producing electricity
- Transporting and storing electricity
- Allocating supply to demand
- Transacting power purchases
- Consuming electricity more wisely
Virtual Power Plants (VPP) and Distributed Energy Resource Management (DERM) have the potential to save massive amounts of energy and cost, and consequently new revenue potential for technology pioneers within the first three categories, especially in the context of conventional vertically-integrated utilities.
Utilities as well as Commercial and Industrial (C&I) customers and residential users will use storage to lower their peak capacity requirements. This will reduce the need for peaker plants, and enable efficiencies over a wide range of generating and transmission assets. Over half of total installations will be at utilities – these will be operating as Virtual Power Plants.
BSI works with utilities and Virtual Power Plant technology providers to capture cost savings and improve return on assets.
As commercial, industrial and even residential customers increasingly become power producers, a new optimization – Distributed Energy Resource Management Systems (DERMS) – will be able to capture efficiencies by connecting nodes of production and intelligently dispatching energy from the lowest cost ones.
BSI also works with DERMS solution providers to offer both utilities and C&I customers windfall savings.