Future energy systems: flexibility through demand side management

MeteoViva introduces the first fully automated demand side management for buildings - in conversation with CEO Dr. Stefan Hardt.

In the US, MeteoViva has introduced a new digital solution that manages the electricity demand of an office building in a way that minimizes the costly purchase of electricity at peak times. What is the potential of this new development?

Demand side management, which is the systematic management of electricity on the demand side, is becoming a key competitive factor in the US. It isn't just the rise in electricity prices that can be a problem for businesses, it's the high costs incurred when electricity is consumed at peak times. In Washington state alone, the price per kilowatt of peak demand has increased by 60 percent in the last 1.5 years. By participating in demand response programs, companies also receive lucrative payments for agreeing to reduce their energy use during times of grid stress. Companies therefore have a tangible interest in professional consumption management. We expect similar developments in Europe, although the markets are still somewhat different.

How do companies manage the problem of peak loads?

Still not digital enough. In the US, demand response programs sometimes send faxes or e-mails to consumers offering financial incentives in exchange for shutting down their systems at certain times. A more recent approach are so-called digital communication protocols such as OpenADR, through which utilities offer incentives to consumers to turn off their systems at certain times. It is also possible to use this protocol to directly access switchable devices. This is done without regard to time of use or user comfort. Until now, there has been no fully automated solution for demand side management, i.e., solutions that automatically switch systems on and off in the buildings based on market signals without compromising user comfort. We are filling this gap with our new product MeteoViva Demand Side Management (DSM).

What opportunities do you see for the European market?

While we are knocking down open doors in the US where the system has already been implemented several times, the solution in Europe is particularly interesting for organizations that are both consumers and producers and operate campus-like areas. Examples include factory sites, airports and large hospitals with many buildings and EV-charging stations.

In Germany, the transmission networks are not the responsibility of the utilities. Transmission system operators, in turn, have no influence on energy prices. As a result, the utilities themselves have a strong interest in reducing peak loads and offering variable tariffs, for example. But we are seeing changes in the market, both in Germany and in other European countries. With the expansion of renewable energies and the rise of decentralized energy supply, more pressure is being put on the transmission networks. The development of consumer-side flexibility represents one of the central building blocks required to successfully implement the energy transition. To this end, we have already successfully implemented a pilot project with the energy supplier EnBW in 2021, demonstrating that MeteoViva technology can be used to operate a larger building in a grid-serving manner.

In the meantime, we have further developed MeteoViva Demand Side Management (DSM) and can offer it on the electricity side as well as on the heat side when using district heating networks. Once again, we have proven that we are the market leader in the predictive operation of buildings.