Smart Energy: The Backbone of the Energy Revolution

Smart Energy Systems October 2020 Introduction

of Europeans agree that climate change is a 93% serious threat

x2 Electricity demand expected to as much as double by 2050

of proposed smart city projects introduced in 45% 2015 involved the energy sector

Introduction: Recent news: The energy sector has become monitoring – across the nation and in ➢ Emerson acquires OSI for one of interest and activity in recent homes and businesses. Becoming $1.6b in August 2020. years due to contentious issues such more aware of inefficiencies and as climate change and the limited fluctuations allows consumers to cut ➢ Iberdrola to open Global stores of fossil fuels. A 2019 survey by back on energy expenditure and the European Commission showed suppliers to tailor demand. In the Smartgrid Innovation Hub 93% of Europeans see climate change future, smart energy systems will allow in Bilbao, Spain, set to 1 as a serious threat . With each record- the world to cut back on CO2 emissions start operating in 2021. breaking summer heatwave, it has and integrate renewable energy into become increasingly evident just how the grid more effectively and ➢ Reserve Power Holdings important it is to reduce our carbon economically. footprint. buys Flexitricity for The world at large is becoming £15.2m, September 2020. Unfortunately, cutting down on more connected and autonomised, carbon emissions and converting to and the energy sector will not be left renewable power generation poses behind. In 2015, 45% of smart city way in which we power our lives. substantial challenges, and will not projects introduced involved the Moreover, the global smart energy 3 happen overnight nor seamlessly. The energy sector . The development of market was estimated to be worth energy system that has served many any ‘smart’ sector requires effective $24b in 2018 and is expected to countries for the past 140 years is supply of electricity to enable data increase to $60b by 20234. antiquated and inflexible; it is not communication and digitalisation – receptive to change. Adding to the blackouts could be detrimental to But what exactly is smart energy, fray, energy consumption could smart cities. Consistency is and will and how is it being used to tackle double by 20502, reaching capacities continue to be the priority of energy climate change, energy demand, and too high for the current system. supply, but smart energy provides a smart city development? path for increased demand to So how do we smoothly ultimately result in a decreased carbon 1 European Commission, Eurobarometer transition into a more adaptable footprint. (2019) system? 2 The , Great Britain’s Energy The development of technology (R)Evolution Currently, smart energy provides in and around the energy sector has 3 Liang et al (2020) opportunities for better energy the opportunity to greatly change the 4 Markets and Markets report 1 Understanding Smart Energy

What is a smart energy system?

Firstly, it is important to energy usage to reduce consumption, collected data are common themes understand the existing energy and hence spending, as well as system across many sectors undergoing network. This network consists of losses. Some sources also describe a significant growth. In the energy energy generators which produce smart energy system as one which is sector, autonomation makes for electricity and gas either by burning fully fueled by clean or even just significantly faster response times and fossil fuels or using renewable energy. renewable energy. The overarching hence, more economical and These suppliers then send this energy term ‘smart energy system’ can environmentally-friendly energy into the national grid, a high-capacity typically be divided into two branches: supply. The ability to instantaneously network of power lines and pipelines consumer smart energy systems (in meet changes in demand also creates for transporting electricity and gas homes, offices, factories, etc) and a more reliable energy source. across the country. The national grid smart energy systems in the grid. The network is managed by large two are highly connected and companies like National Grid in interactive, and systems England or SP Energy Networks in tend to build onto local, consumer Southern Scotland. Distribution systems. For the purpose of this Smart energy network operators (DNOs) then step report, ‘consumer smart energy down the high voltages and distribute systems’ may be referred to as ‘smart energy locally for consumer use. energy in the home’ (though it should National transmission companies and be noted that this also applies to Smart Meter Smart Grids DNOs are responsible for upkeeping offices, factories, or other consumers), the infrastructure on a national and while ‘smart energy systems in the local level, respectively. Finally, your grid’ may be referred to as ‘smart monthly energy bill comes from grids.’ companies known as ‘energy providers’ such as British Gas or SSE. Smart energy systems also typically imply a level of digitalisation A smart energy system is a and autonomation. Compilation of system which measures and controls data and industry optimization from Source: Smart Energy GB

2 Source: Vaclav Smil (2017) and BP Statistical Review of World Energy via OurWorldInData.org/energy

What is a smart energy system (cont.)?

Smart energy systems in the Smart grid systems collect data advanced. To keep up with these home are already well on their way to from smart meters and smart changes, excess and waste electricity being commonplace in homes across buildings. Data shared by smart can be redistributed to compensate the UK thanks to the integration of meters to energy suppliers can then for growing demand. smart meters. Energy meters have be shared with generators. The data been around for almost 50 years, but can then be used to alter energy Generally speaking, this covers until quite recently, have merely production in real time by assessing the extent of widespread smart energy measured electricity, voltage, current, end-user demand. By analysing the systems. It is very important for smart and/or power consumption. More shared data, generators and suppliers energy systems to be able to evolve recently, these have been replaced know when energy is most likely to be with growing demand and new with smart meters, which gather data at its peak in an area and when it is technology; renewable or otherwise. to show exactly how much households expected to be low; this allows are spending each day, and which suppliers to manage supply and cut appliances are the most expensive to back on waste energy at low demand run. These meters rely on ‘advanced times. Taking that a step further, metering infrastructure’ (AMI) and can automated smart systems can react communicate directly with your immediately to increase supply (either supplier to determine your bill at the by generating more or by drawing Some define smart energy end of each month. This makes the from energy storage facilities), extra step of reporting your meter removing the need to produce much systems as being fully readings each month obsolete. It also more than consumers are using at a fuelled by renewable makes readings more accurate, as the given time. These (currently small) supplier knows exactly how much adjustments are likely to make a big energy. How do smart energy is being used at a given difference in the future, since energy systems work with moment and can compare it directly electricity demand could as much as renewable energy? with the price of energy at that time, double by 2050 as electric vehicles rather than averaged across the (EVs) become more widespread and month. This system, hence, would smart buildings, smart transportation, reward consumers who use energy at and similar technologies become more inexpensive, low-demand times. 3 Smart Energy and Renewables

Smart energy and renewables: Solar and are some the peaks in the mornings and of the most popular renewables on the evenings when consumers are home Bulb recently launched its market, but the sun does not always from work, demand fluctuations still services in Texas and has shine, and the wind does not always tend to vary greatly from time and already gained 5,000 new blow (and is incredibly varied in its location. Poor planning or a lack of customers. intensity for that matter). Renewable resources can lead to blackouts or a energy needs an approach for weakened supply. Adding renewable integration and for meeting power energy into the mix creates even more demand daily and year-round. uncertainty, as the supply side is not based on demand and is quite literally The rise of renewable energy as changeable as the wind. A more suppliers such as Bulb, Octopus autonomised system, hence, becomes Octopus Energy recently Energy, , , and necessary for directing power where it acquired Evolve Energy in Ovo, as well as the push to include is needed and when. Texas for $5m, launching more renewable sources in larger companies like British Gas, Scottish In the Orkney Islands, Scottish its own expansion into Power, and E.ON, is not just a result of and Southern Energy Networks the US. government tariff incentives. Distribution (SSEN) oversaw Britain’s Consumers are becoming more first smart-grid renewable-energy conscientious of the environment and integration, a project started in 2009 of their carbon footprints, and but which reached its integration renewable generators and suppliers capacity in 2012. The Orkney system The Orkney Islands are are growing fast because of it. relies on an Active Network able to export renewable Management (ANM) system, which Digitalisation is especially energy to the mainland takes in continuous real-time important within the renewable side measurements and calculates (as of September 2020) of smart energy systems. Consumer via a 220MW electricity consumption so it can alert energy demand is volatile. Though the generators to cut back on or increase transmission cable. general curve over the course of a day supply. can be mapped to take into account 4 Smart energy and renewables (cont.): The Orkneys are well positioned Balancing Mechanism (BM) (a smart for renewable energy generation given grid platform) in December 2019, the presence of strong winds year- adding small providers and even a few The UK aims to bring round and strong tides. By 2016, the customers and independent energy green house gas Orkneys were producing 120% of their aggregators to its user-base. The BM emissions to net-zero by total electricity needs. monitors real-time demand and meets it using the input energy from big and 2050. In 2019, SSEN received approval small generators, allowing small from the Office of Gas and Energy renewable energy generators to be Markets (Ofgem) to install a 220MW more easily incorporated into the transmission cable between Orkney overall supply. and the mainland, one of the steps needed to upgrade the network. As of In addition to new small and large the 23rd September 2020, the renewable energy integration, smart GE announced it will stop transmission cable and coinciding energy systems also offer traditional selling parts to coal-fired upgrades were completed, and excess fossil fuel fed energy producers an power plants, shifting its energy distributed to the mainland5. easier transition for their existing sites. As sections of traditional power plants focus to supplying The Orkneys’ grid is a good are converted, smart systems can be renewable generators. example of why it is important for relied on to adjust the supply ratio as these systems to be adaptable for needed to best incorporate the future needs; as our technology renewable energy. improves and future innovation determines better ways for the smart Autonomised smart energy grid to operate and for clean energy to systems are the only way to balance be generated, components will need demand and supply through the to be integrated seamlessly into the transition to renewable energy. These network. systems, acting instantaneously, can help to tailor unreliable renewable 5 Current news, Britain's first smart grid Networks are being put into place energy generation to meet consumers’ and trialled throughout the UK and to open connection applications needs and will be vital at all stages of again, 2020 Europe. National Grid expanded its the renewable energy revolution. 5 Government Recognition

Government recognition: One of the big questions Only then will renewables be go. Though Scotland generated 90% of regarding the implementation of affordable for all consumers. its electricity demand from renewable renewables, is the willingness of the Eventually, there will be enough energy in 20198, electricity demand consumer. Though many consumers generation sites and enough will climb as the number of EVs are becoming more aware of the supporting infrastructure that tariffs overtakes that of non-EVs and electric environmental impact their everyday will no longer be necessary, and gas heating becomes more commonplace. choices have, not all consumers can can be phased out. Furthermore, EV charging stations will afford the luxury of pursuing need to be distributed more In June 2019, the UK became the environmentally friendly, and typically consistently, since EVs cannot yet first major economy to mandate net- more expensive, practices. This is travel as far as petrol-fuelled vehicles zero greenhouse gas emissions by especially true in the energy sector, and take much longer to recharge. 2050. Scotland has announced even where renewables are more expensive These stations will be significantly loftier goals in its net-zero plan, aiming due to new generation sites and more effective if connected to an to be ahead of the deadline by 5 years. infrastructure needing to be built to overarching smart system, allowing By 2019, the UK had already reduced meet demand and replace existing drivers to find chargers and pay with emissions by 42% as compared to fossil fuel facilities. Gas often remains ease, redirecting power from stations 1990 levels, while growing the the cheaper option. This affordability that are not in use to those that are. economy by 72%, and it expects to see issue makes government incentives The same is true for distributing the number of jobs created by important to ensure widespread energy within homes and throughout renewable energy (“green collar jobs”) renewable energy conversion. Though neighbourhoods. Electricity will need reach two million by 2030. Moreover, some believe government tariffs are to be allocated as efficiently as the government expects the value of the key to promoting consumer possible, and hence, the practical side exports from the low carbon economy conversion, government policy and of the renewable energy policy will to grow to £170b over the next ten investment in the renewable sector require the implementation of smart years6. Furthering these goals, the UK may be more important, as it will build energy systems. also plans to move forward the ban on the infrastructure and make the sale of new petrol, diesel, and renewable energy widely accessible. hybrid vehicles from 2040 to 20357. Arguably, renewable energy needs 6 UK Government news story There is a lot of action towards government policy and investment to 7 BBC article conversion to a net-zero world, but bridge the gap caused by 8 Scottish Renewables statistics implementation still has some way to infrastructure implementation costs.

6 225 million smart meters are expected in the EU by 2024

Cross-border smart grids are at the forefront of EU grid design

European Commission to invest €998m into smart grids

Government recognition (cont.): It appears the UK government number of projects are working to demonstrates just how important understands this – it aims to have a build a network: SINCRO.GRID operate smart energy systems are perceived to total of 51.6 million smart meters in Slovenia and Croatia, ACON in be by governments. There is no installed by 2024. Moreover, Ofgem Czechia and Slovakia, Smart Border questioning the presence of smart has proposed £25b to transform Initiative in France and Germany, energy systems in the future, but energy networks and make them more Danube InGrid in Hungary and rather the form their presence will conducive to delivering clean energy Slovakia, Data Bridge in the Baltics, take. to consumers9. This will aid greatly in Denmark, Finland, and France, and creating a smarter grid network, with Cross-Border Flexibility Project greater interaction and simpler between Estonia and Finland11. integration for delivery of renewable EU Member States announced a energy. Commission proposal in October 2020 Like the UK, many other to invest €998m in energy countries are making policy changes to infrastructure projects that connect push for net-zero carbon. In recent Europe. €720m has been allocated to months, governments around the the Baltic Synchronisation Project world have been paying more linking Estonia, Latvia, Lithuania, and attention to their climate change Poland, an additional €102m given to policy – a consequence of the Danube InGrid, and the rest will go to pandemic and coinciding disturbances similar projects, including the first

such as record wildfires and storms. grant for a CO2 transport project for Belgian and Dutch ports12. These The European Commission projects will shape the energy market reported that there will be nearly 225 as it progresses closer and closer to million smart meters in the EU by removing fossil fuels altogether, 2024, equivalent to about €47b worth 9 further engraining the EU as a single, Ofgem press release of investment and representing almost 10 united, progressive entity. European Commission press release 77% of European consumers10. 11 European Commission press release This evidence of significant 12 European Commission press release Within the EU, cross-border government initiative and investment smart grids are a necessity, and a

7 The Smart Energy Market

Drax Power Station

The smart energy market Smart energy comes in many unexpected lows), and compensate for More about Drax: shapes and sizes. Even as suppliers like fluctuations in renewable generation. Drax power station is Ecotricity, Good Energy, and Bulb push for and invest in creating new Zenobe is the largest leading the way towards renewables infrastructure, existing independent owner and operator of a coal-free future. As the battery storage in the UK. Their generators are making a greater effort largest power station in to adapt their facilities. As the world batteries serve commercial and moves away from using fossil fuels, industrial clients as well as utilities and the UK, it is one of the companies like the Drax Group and infrastructure, providing more reliable, largest decarbonisation EDF Energy will likely want to consistent power supply. projects in Europe. It repurpose those facilities from gas and Large-scale battery storage for coal power to biogas or other clean the grid is a key part of the transition converted its fourth coal energy generation techniques. Smart to renewables. Energy demand is unit to use biomass in grid technology will not only enable highly volatile, and traditional renewables to be added more generators will burn an excess to 2018, allowing two thirds effectively but also enable traditional overcompensate in case of of the power station to producers to transition more unexpected spikes in demand. produce renewable smoothly. On the production end, Renewable energy exacerbates this producers will need to rebuild and volatility since the supply itself is no electricity. They have repurpose their existing sites, while on longer steady or reliable, and hence, two remaining coal the user’s end, new connections may energy storage becomes very need to be put in place to handle the important in bridging the gaps generating units left and change in supply. between supply peaks and demand expect to be coal free Energy storage is another key peaks. before 203013. part of smart grid design, in particular for renewable energy integration / conversion. Energy storage at different points on the grid helps to offset 13 Drax press release fluctuations in energy usage (such as unexpected peaks), cut down on energy losses (taking energy in at 8 The smart energy market (cont.): Arenko, is focusing their country participated in the clapping Fulcrum also deliver end-to-end technology on autonomising the for carers at 8pm on 23 April 2020, electric vehicle (EV) charging solutions supply response in battery storage. Its and at around 8:02pm, all those for commercial and destination platform integrates utility / people went inside, turned on the TV, charging across the nation. Its commercial battery storage into the put the kettle on, and / or put dinner installation includes network grid and reads demand in second-to- in the oven. This simultaneous re- connections, metering installation, second trading intervals so that it can entering caused a 950MW spike in in power substation installation, and release energy immediately when energy demand across the nation14, cabling at all voltages, making its demand requires. At times of low and Arenko’s technology was able to services in EV charging comprehensive demand, Arenko’s technology allows detect that spike and release enough and grid connected. Fulcrum sees itself battery operators to buy renewable energy to cover 10% of the necessary aligned with the progression of net- energy when wholesale prices are low supply to avoid blackout. The clapping zero incentives, and it expects its or even negative. Operators can then for carers spike demonstrated the position in the market to be highly sell that energy back to the grid at high importance of such technology, and opportunistic as new technology demand times (when wholesale prices just how useful it can be for the grid. creates the need for new utility are positive) to bridge the gap that connections. Fulcrum will additionally renewable energy may not be able to As the supply of energy becomes be well positioned to repurpose gas cover. This can make both the storage more diversified and digitised, updates infrastructure to suit more sustainable and release of electricity into the grid to utilities connections will also need fuels such as green hydrogen. These profitable, thanks to the recent to be updated. Fulcrum Utilities, a UK services will be important for small- development of negative wholesale company listed on the AIM, is a and large-scale smart grid and prices. Arenko’s platform autonomises utilities infrastructure provider. This renewable energy developments. the process to maximise returns and year, Fulcrum announced a change in react immediately to changes in strategy in the hopes to better align demand. For consumers, its itself with the drive towards net-zero technology reduces the volatility of carbon emissions. In addition to its traditional gas and electric offerings, supply-response and, hence, over-all 14 Arenko news volatility. Fulcrum provides smart metering installations and multi-utility In April, when clapping for conversion to aid companies in their carers started, Arenko’s technology transition to renewable generation. proved its worth. Most people in the 9 2019 Revenue: £46.1m Market Cap (AIM): $89.95m (Oct 14 2020)

OVO 2019 Revenue: £1bn+19

2019 Revenue: £120m Market Cap (AIM): $27.96m (Oct 14 2020)

The smart energy market (cont.): Fulcrum and similar companies an EV charging app which launched its More about Ovo: are likely to become increasingly EV charging payments app, Zap-Pay, in important in the coming years as the September 2020, making its platform OVO group, founded in UK transitions to its net-zero goals and more connected and comprehensive18. 2009, has grown EVs become more widespread. As these technologies work more quickly in the past 11 smoothly with each other and with EV charging integration is energy suppliers / generators, more years; it is active in the another growing part of smart grid electricity can be conserved and UK, France, Spain, and systems. EVs have been especially redistributed to parts of the local grid prominent in recent headlines, with with higher demand. Australia and has over Uber announcing its £5m funding for 250 smart home EV charging infrastructure in London15, Kaluza, part of the OVO group, SSE imploring the Department for introduced their vehicle-to-grid (V2G) engineers. Ovo Transport to make it mandatory for solution in 201819. Kaluza’s platform recently acquired SSE’s fleets to switch to electric by 203016, connects EV smart charging stations to and Octopus energy just recently the grid via the DNO Western Power household retail passing its 1,000 EV charger Distribution (WPD) to provide greater business. It also milestone17. This follows the UK flexibility. Kaluza was formerly focused acquired Spark Energy moving forward the ban on the sale of solely on connecting Sonnen (a petrol-, diesel-, and hybrid-fuelled German company) batteries in homes in 2018, which it is vehicles to 2035, and the growing to WPD’s local grid. Its platform allows now merging with its comprehension that our transit habits the grid to communicate with local are one of the worst for the batteries to regulate SSE branch, taking the environment. during fluctuations (releasing energy name of SSE20. at peaks). Kaluza’s recent addition of Good Energy is a UK supplier grid-connected transport devices which is also diversifying its offerings 15 Guardian article provides greater flexibility to the grid 16 into the EV market. The renewable Current news article and allows storage and transport 17 energy provider acquired the majority Current news article devices to work together at a local 18 Good Energy, LSE announcement holding in Next Green Car Ltd (NGCL) level. 19 OVO Group, Our Business Key Facts in June of 2020. NGCL owns Zap-Map, 20 Spark Energy website

10 The smart energy market (cont.): Another company, Chameleon the wholesale energy market through and regulate exchanges of energy technologies has launched a platform their platform21. directly between generators and with Bulb and Samsung which gathers consumers using blockchain users’ data from their smart meters to Similarly, WePower specifically technology to guarantee security. track usage on in-home displays (IHDs) sells green energy to businesses. Their Energy would become significantly and cloud connected devices. Users push to convert commercial and cheaper for consumers, as they would can also connect their smart home industrial companies to renewable be able to access energy at wholesale controls to be adjusted as desired energy covers about two thirds of prices, and it would also be beneficial from smart phones and tables. Further overall energy consumption which for generators, as their energy supply autonomation which allows for greater most green suppliers do not focus on. would be efficiently allocated to control and conservation of power. WePower cuts out the middleman and reduce waste. allows companies to purchase green Other efforts to create a more power more directly and more efficient grid look at the traditional economically. One day, these smaller structure of the network itself. A trading platforms could be expanded number of efforts deal with the into a larger grid system, so that all localisation of grids. If your neighbour energy is traded. generates excess electricity from solar New data from Kaluza panels on their roof, that excess TenneT, in the Netherlands and reveals AI-powered smart energy could be transferred to you Germany, is one company working on homes could save the and the rest of the neighbourhood. a full-gird energy trading platform. It uses blockchain22 (known widely as the energy industry £2.5b. SSEN and SP Energy Networks technology that enables bitcoin) to announced an agreement with create a secure sequence in the smart Origami Energy to begin three trials grid. The use of blockchain would using their P2P trading platform in allow both consumers, generators, 2019. Origami’s platform, aggregators, and other grid users to Renewables+, uses a real-time securely exchange information about 21 Origami news article machine learning program to optimise balancing supply, usage, and 22 For more info, please see Aalto’s Big energy trading. It relies on consumer payments. Energy trading will likely be Data and the Music Industry Insights data to determine demand and supply largely autonomised in the future, so and to enable users to interact with that AI and advanced algorithms settle 11 Investment in Smart Energy

Investment in smart energy: The energy market is busy; develop from its innovation hub in Anesco, which was added in 2019. globally, oil and gas remain the 202123. Quinbrook Infrastructure Partners has dominant energy source while interest invested over $8b in renewable energy in renewables is ever on the rise. UK-based Octopus Energy has infrastructure through the past 30 Smart energy systems and also announced plans to build an years and operates in the UK, USA, and technologies are already being energy innovation hub in Manchester. Australia. Alpiq has announced it will integrated in order to simplify the It expects the technology, data be focusing more on renewable transition to a zero-carbon world. science, and AI centre to be key in the energy investments in its home- Smart energy holds immense promise development of smart grid technology. country, Switzerland, and mainland for the future of the power grid, but it Its cloud-based energy platform, Europe25. still has a way to go and will continue Kraken, is already used by companies to develop to fit the needs of the such as E.ON and Good Energy to consumer. It is an area of significant facilitate interaction across the grid, interest, and recent investment and its recent acquisition of Evolve activity demonstrates this. Energy for $5m will help it push Kraken into the US market. Octopus’s Spanish utility giant, Iberdrola, is CEO also recently announced it would currently constructing a global smart begin raising capital in 2021 to grid innovation hub at their continue its expansion into the US distribution operation centre in Bilbao, market24. Spain. The hub is expected to open in spring 2021 and is intended to bring In September 2020, Alpiq Digital together suppliers and collaborators sold Flexitricity to Quinbrook for CHF from around the world. 18m. Flexitricity is a UK-based company controlling a portfolio of Iberdrola, whose subsidiaries demand-side response companies. include and Avangrid Flexitricity uses a virtual power plant (USA), increased its annual investment to meet demand and additionally to €280m in 2019 and has already control a number of energy storage 23 Iberdrola press release identified 120 new smart grid projects facilities, including 70MW storage for 24 Octopus Energy announcement worth €110m which it hopes to Gresham House, and 19.5MW for 25 Quinbrook press release

12 Start-up’s to watch Location Funding (m)

Moixa UK £24.3

Upside Energy UK £6.2

Electron UK £1.4

Depsys Switzerland $18.4

Zenobe UK £100

BBOXX UK $100.1

Chameleon UK -

Limejump UK -

Lition Germany -

GreenCom Germany -

Equiwatt UK -

Grid Singularity Germany -

FlexiDAO Spain -

Verv UK - Investment in smart energy (cont.): Greenbird Integration Technology Main Market of the Stock is a Norwegian company providing a Exchange23. cloud-based energy data integration In the UK, Aberdeen Standard platform. Greenbird completed a €5m Investments invested £48m in smart series B funding round in September, metering installation through a demonstrating there are promising partnership with Calvin Capital. new technologies emerging in the There is a lot of activity in the smart energy market26. smart energy subsector. Moreover, In addition to grid investments, there are a number of companies with Lithuania-based Ignitis Grupe secured new emerging technologies and a €110m loan from the European platforms which will be very attractive Investment Bank (EIB) to help install its to larger players in the energy industry smart meters and IT solutions for the who are looking to set their business energy distribution operator, Energijos up for a key position in the future grid. Skirstymo Operatorius (ESO)27. The For the smart grid to function company provides production, supply, smoothly, there will likely be and maintenance of power and heat in consolidation, as too many energy Lithuania, Latvia, Estonia, Poland, and trading platforms or other smart Finland. Ignitis has their own technologies will merely complicate innovation fund, which they invest in communication and data analysis the UK, Norway, France, and Israel. more. The funding from the EIB has been followed by Ignitis’ IPO onto the Nasdaq Vilnius in October 2020, for which the company raised €450m and became the largest IPO in the Baltics. The company’s 20 million shares will 26 Greenbird new release trade on the Main Trading List of 27 EIB news release Nasdaq Vilnius and its global 28 Ignitis Group news release depository receipts will trade on the

13 Conclusion

Conclusion: Smart energy systems are technology and software will need to More recent news: expected to be the link, not only be integrated to accommodate ➢ Software firm Teletrac between generators and consumers, additional renewable energy but also the present and the future. generators (from new offshore wind Navman launched its New technology involving blockchain, farms to solar cells on residential new AI tool designed P2P lending, and streamlined battery roofs), to convert coal or fossil fuel to give fleet operators communication holds promising burning sites, and to keep up with the potential for better integrated growing power demand. more insight into EV systems, cutting back CO2 emissions, charging requirements. and saving consumers money. Big In an age where data is the most energy companies such as British Gas, valuable commodity, smart energy ➢ Emerson Electric National Grid, and E.ON are working to systems will hold immense insight for create and adjust to a more integrated the energy sector and how it can best acquires OSI Inc. for grid. There is significant potential for adapt to the renewables transition. $1.6b. consolidation among most Smart energy is aligned with world technologies in the smart energy autonomation and will benefit as ➢ Bulb launches UK’s first market due to the need for efficient renewable energy becomes cheaper green, smart Pay-As- communication and fast response to and money moves out of the oil and demand fluctuations. gas industry. You-Go (PAYG) platform. It may seem like investment is The energy sector is important restricted to large institutions and and active, and smart energy systems ➢ The UK government is government organisations, but the will need to progress hand in hand field is multifaceted and there are with renewables to achieve zero- set to release its net- many technologies emerging that will carbon goals, making it a vital zero strategy ahead of contribute to the evolving grid subsector. Though the push to reach structure. New battery storage, smart net-zero goals is driving smart energy the COP26. EV charging ports, and linkable home change, it also makes it clear that appliances will all be important as smart energy is indeed the backbone smart meters become more advanced of the energy revolution and the and connected. As smart grids opportunity should not be overlooked. develop, new communication 14 Aalto Capital Smart Energy Discussion October 2020

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