Demand response market trends

Four key trends accelerating demand response adoption

The last months of 2021 brought electricity issues back into focus due to high energy prices. If today the energy business is largely one-way, where the consumer is billed for electricity, then in the future it will be two-way. The consumer will also start contributing to the well-being of the electricity system. In the renewable energy sector, four main trends will give us momentum this year.

The development of the energy market enables consumers to become more involved

Legislation and directives of the European Union promote the involvement of consumers in the electricity market. If presently the energy business is largely one-way, where the consumer is billed for electricity, then in the future it will be two-way. Consumers can participate in the electricity system not only as consumers and payers, but they can also contribute to the well-being of the electricity system. And for that, the electricity system is also ready to give back.

In some countries, large-scale consumers can already participate in the balancing energy market, earning additional revenue for this. In addition, these consumers also help reduce the carbon footprint of the electricity system. For example, in Estonia, consumers only have this opportunity through the Fusebox platform. We also operate in Lithuania, Latvia and Finland, and new countries are being added.

Specifically, we operate in the balancing market with an electricity demand response service. There must be a balance between production and consumption in the electricity system, but from time to time there are unexpected fluctuations where the operator will then have to increase production or reduce consumption.

We help improve the capability to respond to changes in consumption and production with the help of consumers. Consumers connected to the platform will experience a very small reduction in consumption, many at a time, so that they even do not notice it. All together it will be quite a lot. Together we get the minimum capacity we need to participate in the market. This takes place conveniently and safely through automation systems and within certain conditions.

The more consumers are connected to the platform, the less expensive diesel or gas stations would be able to enter the market, which would be used otherwise.

Global green transition

Secondly, green transition. The addition of renewable energy makes the electricity market even more volatile, so the importance of demand response will continue to grow.

The green transition is global and passes vertically through all sectors. As the topic of the green transition passes vertically through all industries and personally affects a very large number of people, it is easier for us to reach new markets. We will certainly have new competitors, but it will push us to move forward faster and smarter.

The development of technology: smarter equipment and automation systems

Thirdly, the development of technology has a positive impact on connecting to our platform. There are more and more so-called smart buildings and devices that are easy to connect to the platform as they can be controlled remotely. For example, equipment related to electric pumping, cooling and ventilation with electrical inertia is well suited to our platform. For instance, many commercial buildings in Estonia are already connected to the Fusebox platform, as well as shopping malls, cold stores and others. These smart buildings and equipment are designed to generate revenue by reducing both energy costs and CO2 emissions.

The dramatic rise of electricity prices

Fourthly, the dramatic rise of electricity prices. This has made our field highly important and encouraged customers and partners to take up the issue to alleviate the increased costs.

In conclusion, the continuation of the green transition is an important issue globally. The development of the energy market provides an opportunity for consumers to be more involved and contribute to the security of the electricity system and the reduction of CO2 emissions. For that, the electricity system is ready to give back and companies can also receive an additional income. With your smart devices, it takes place conveniently and safely through automation systems and within certain conditions.

Ten-fold increase in Fusebox client earnings Electricity demand response solution available for EG EnerKey’s customers