Posted on: 04/07/2018
Following the launch of our new Asset Optimisation business function, Robert Groves, Chief Executive Officer, explains how our team have been leading the way in the flexibility market and recaps on the celebratory launch event enjoyed by customers.
Last week, SmartestEnergy hosted a customer launch event to celebrate our new Asset Optimisation business function. The event centered around our unique offering in the flexibility market space, and our ability to create both commercial value and business resilience as the energy system continues to change.
The new Asset Optimisation business harnesses our intelligent commercial models – via cutting-edge technology from Origami Energy – to react quickly to market changes, ensuring our customers are connected to the most profitable revenue streams as they become available.
Market shifts that brought about the need for this business function
Since we first assembled a team to develop our asset optimisation capabilities in 2014, the flexibility market has grown considerably. At that time, the first Capacity Market Auctions were only just being introduced.
It’s only been more recently that discussions about flexibility have taken centre stage. With flexibility becoming more mainstream, we've seen an increased participation in ancillary markets such as Firm Frequency Response (FFR), Short Term Operating Reserve (STOR) and the Balancing Mechanism.
With our entrenched market knowhow, we are able to leverage the increasing liquidity of these markets to deliver multiple revenue streams to our customers.
Our ability to monetise multiple assets to deliver the best results for our customers
We’ve recognised the potential for a full Asset Optimisation service; a service that can monetise our customers assets in multiple areas, including:
1) Simple cost management initiatives
2) Participation in balancing services
3) Short-term energy trading arrangements
There are commercial models to predict and optimise the performance of our customers’ assets and monetise them in multiple markets. Our industry leading technology partner, Origami Energy, lets us aggregate, manage and dispatch our customers’ distributed assets across the UK in real-time to deliver optimal value.
The future energy system will look very different from today. Aurora Energy Research forecasts that flexible capacity could grow at a rate of 10% per year, almost tripling to more than 25GW of installed capacity by 2030 – at which point the market will generate revenues of close to £3 billion per year.
As a next generation energy company, we’re proud to extend our business model with our new Asset Optimisation function. The SmartestEnergy team have worked hard to bring this together and we now have a dedicated workforce of 20 employees running the function.
Introducing our customers to this game-changing business function
This business function is now fully functional. The customer event last week allowed us to introduce the benefits of Asset Optimisation and celebrate recent successes with our customers, partners and other energy professionals.
We captured some video responses from the SmartestEnergy team. To get a feel for how excited our team are about Asset Optimisation and this milestone event, hear what James Graham, Daniel Smith and Chris Smith have to say: