Press Release

​Open​ ​Utility​ ​has​ ​secured​ ​£412,500​ ​funding​ ​from​ ​BEIS​ ​Energy Entrepreneurs​ ​Fund​ ​(EEF)​ ​to​ ​develop​ ​a​ ​groundbreaking​ ​new​ ​online​ ​marketplace​ ​for​ ​local electricity​ ​flexibility​ ​trading.​ ​The​ ​marketplace​ ​will​ ​help​ ​Distribution​ ​Network​ ​Operators (DNOs)​ ​play​ ​an​ ​active​ ​role​ ​in​ ​managing​ ​local​ ​smart​ ​grids:​ ​seen​ ​by​ ​many​ ​as​ ​a​ ​key​ ​missing​ ​piece​ ​in the​ ​transformation​ ​to​ ​a​ ​decentralised​ ​and​ ​decarbonised​ ​energy​ ​system.

With​ ​the​ ​rapid​ ​rollout​ ​of​ ​distributed​ ​renewable​ ​generation,​ ​storage​ ​and​ ​electric​ ​vehicles​ ​DNOs are​ ​facing​ ​unprecedented​ ​congestion​ ​problems​ ​on​ ​the​ ​local​ ​network.​ ​Open​ ​Utility’s​ ​platform will​ ​help​ ​DNOs​ ​transition​ ​into​ ​active​ ​“Distribution​ ​System​ ​Operators”​ ​(DSOs)​ ​that​ ​can​ ​procure customer​ ​flexibility​ ​to​ ​reduce​ ​congestion​ ​at​ ​specific​ ​times​ ​and​ ​locations;​ ​as​ ​a​ ​cost​ ​effective​ ​and agile​ ​alternative​ ​to​ ​network​ ​reinforcement.

Online​ ​marketplaces​ ​like​ ​Airbnb​ ​and​ ​Uber​ ​combine​ ​intuitive​ ​web​ ​design​ ​with​ ​scalable​ ​resource optimisation​ ​algorithms​ ​to​ ​lower​ ​barriers​ ​to​ ​entry​ ​and​ ​unlock​ ​the​ ​value​ ​of​ ​underutilised​ ​assets. Open​ ​Utility​ ​is​ ​leveraging​ ​the​ ​power​ ​of​ ​online​ ​marketplaces​ ​to​ ​solve​ ​one​ ​of​ ​the​ ​biggest challenges​ ​facing​ ​the​ ​energy​ ​industry:​ ​enabling​ ​DNOs​ ​to​ ​become​ ​DSOs.

Open​ ​Utility​ ​has​ ​built​ ​up​ ​a​ ​track​ ​record​ ​of​ ​innovating​ ​on​ ​a​ ​global​ ​scale.​ ​The​ ​flexibility marketplace​ ​will​ ​join​ ​their​ ​first​ ​product,​ ​a​ ​peer-to-peer​ ​matching​ ​service​ ​for​ ​renewable​ ​energy suppliers,​ ​which​ ​is​ ​already​ ​operational​ ​in​ ​the​ ​UK,​ ​Italy​ ​and​ ​the​ ​Netherlands.

A​ ​smart,​ ​local​ ​and​ ​flexible​ ​grid

According​ ​to​ ​a​ ​report​ ​by​ ​BEIS​ ​and​ ​Ofgem,​ ​a​ ​smart​ ​and​ ​flexible​ ​energy​ ​system​ ​could​ ​reduce​ ​UK electricity​ ​generation​ ​emissions​ ​and​ ​realise​ ​up​ ​to​ ​£17-40bn​ ​of​ ​savings​ ​by​ ​20501.​ ​These benefits​ ​come​ ​from​ ​better​ ​optimisation​ ​and​ ​operation​ ​of​ ​the​ ​system​ ​which​ ​avoids​ ​or​ ​defers network​ ​reinforcements,​ ​avoids​ ​generation​ ​build,​ ​and​ ​avoids​ ​curtailment​ ​of​ ​low​ ​carbon generation.​ ​Highly​ ​scalable​ ​services​ ​that​ ​enable​ ​customer​ ​participation​ ​in​ ​local​ ​flexibility services​ ​is​ ​fundamental​ ​to​ ​unlocking​ ​these​ ​benefits.

The​ ​rapid​ ​growth​ ​of​ ​electric​ ​vehicles​ ​(EVs)​ ​will​ ​have​ ​a​ ​particularly​ ​big​ ​impact​ ​on​ ​the​ ​local electricity​ ​network.​ ​Flexibility​ ​trading​ ​platforms​ ​will​ ​play​ ​a​ ​key​ ​role​ ​in​ ​enabling​ ​EVs​ ​to co-ordinate​ ​their​ ​charging​ ​schedules​ ​with​ ​the​ ​DSO,​ ​so​ ​the​ ​decarbonisation​ ​of​ ​transport​ ​does not​ ​require​ ​£billions​ ​of​ ​electricity​ ​network​ ​reinforcement​ ​which​ ​ultimately​ ​would​ ​have​ ​to​ ​be borne​ ​by​ ​bill​ ​payers.

Local​ ​flexibility​ ​marketplaces​ ​are​ ​mentioned​ ​as​ ​being​ ​a​ ​focus​ ​for​ ​innovation​ ​funding​ ​in​ ​the​ ​BEIS Smart​ ​Systems​ ​and​ ​Flexibility​ ​Plan.​ ​With​ ​the​ ​£412,500​ ​grant​ ​to​ ​Open​ ​Utility,​ ​BEIS​ ​are demonstrating​ ​that​ ​they​ ​are​ ​keen​ ​to​ ​turn​ ​words​ ​into​ ​action.

Ian​ ​Marchant,​ ​former​ ​CEO​ ​of​ ​SSE​ ​and​ ​investor​ ​in​ ​Open​ ​Utility,​ ​is​ ​supportive​ ​of​ ​Open​ ​Utility’s developments.​ ​Ian​ ​says:​ ​"As​ ​the​ ​energy​ ​system​ ​evolves​ ​into​ ​one​ ​that​ ​is​ ​decentralised​ ​and decarbonised​ ​the​ ​role​ ​of​ ​the​ ​local​ ​distribution​ ​companies​ ​will​ ​change​ ​fundamentally.​ ​Local​ ​and peer​ ​to​ ​peer​ ​energy​ ​and​ ​flexibility​ ​markets​ ​with​ ​play​ ​a​ ​leading​ ​role​ ​in​ ​this​ ​change​ ​and​ ​I​ ​am delighted​ ​the​ ​BEIS​ ​are​ ​sponsoring​ ​this​ ​key​ ​piece​ ​of​ ​preparatory​ ​work​ ​with​ ​Open​ ​Utility"

Value​ ​to​ ​DSOs

DSOs​ ​are​ ​beginning​ ​to​ ​trial​ ​novel​ ​approaches​ ​for​ ​procuring​ ​customer​ ​flexibility.​ ​Most​ ​notably, UK​ ​Power​ ​Networks​ ​announced​ ​in​ ​August​ ​2017​ ​that​ ​they​ ​were​ ​launching​ ​tenders​ ​for customer​ ​flexibility​ ​in​ ​10​ ​areas​ ​covering​ ​13,000​ ​postcodes​ ​in​ ​London,​ ​East​ ​Anglia​ ​and​ ​the South-East​ ​2.

However,​ ​DSOs​ ​face​ ​several​ ​challenges​ ​in​ ​making​ ​local​ ​flexibility​ ​procurement​ ​a​ ​success.​ ​They have​ ​little​ ​experience​ ​in​ ​engaging​ ​with​ ​customers,​ ​as​ ​historically​ ​they​ ​were​ ​an​ ​invisible​ ​part​ ​of the​ ​energy​ ​supply​ ​chain.​ ​Without​ ​high​ ​levels​ ​of​ ​participation​ ​in​ ​their​ ​tenders,​ ​they​ ​cannot guarantee​ ​any​ ​benefits​ ​over​ ​traditional​ ​reinforcement.​ ​Open​ ​Utility’s​ ​solution​ ​can​ ​help​ ​DSOs interact​ ​with​ ​the​ ​long​ ​tail​ ​of​ ​flexibility​ ​providers​ ​to​ ​maximise​ ​participation​ ​in​ ​their​ ​tenders.

Tender​ ​processes​ ​need​ ​to​ ​become​ ​fully​ ​automated​ ​if​ ​they​ ​can​ ​eventually​ ​scale​ ​to​ ​cover​ ​the​ ​1.7 million​ ​postcode​ ​areas​ ​in​ ​the​ ​UK.​ ​They​ ​will​ ​also​ ​need​ ​to​ ​coordinate​ ​with​ ​the​ ​System​ ​Operator, who​ ​needs​ ​to​ ​maintain​ ​overall​ ​control​ ​over​ ​national​ ​system​ ​balancing.​ ​Open​ ​Utility’s​ ​solution utilises​ ​resource-optimisation​ ​algorithms​ ​to​ ​manage​ ​this​ ​complexity​ ​and​ ​has​ ​interfaces​ ​to other​ ​interested​ ​parties​ ​like​ ​the​ ​System​ ​Operator.

We​ ​are​ ​speaking​ ​to​ ​a​ ​number​ ​of​ ​DSOs​ ​to​ ​join​ ​the​ ​trial​ ​later​ ​this​ ​year.

Value​ ​to​ ​Flexibility​ ​Providers

A​ ​key​ ​goal​ ​of​ ​the​ ​project​ ​is​ ​to​ ​lower​ ​barriers​ ​for​ ​providers​ ​to​ ​take​ ​part​ ​in​ ​local​ ​flexibility trading.​ The​ ​benefits​ ​are​ ​increased​ ​revenue​ ​opportunities​ ​which​ ​are​ ​uniquely​ ​available​ ​for distribution​ ​grid​ ​connected​ ​assets.

We​ ​will​ ​be​ ​running​ ​a​ ​consultation​ ​to​ ​engage​ ​with​ ​the​ ​flexibility​ ​community​ ​to​ ​ensure​ ​that​ ​the service​ ​fits​ ​the​ ​needs​ ​of​ ​a​ ​wide​ ​range​ ​of​ ​stakeholders,​ ​including​ ​demand-response​ ​aggregators, battery​ ​manufacturers,​ ​energy​ ​suppliers,​ ​distributed​ ​generators,​ ​project​ ​developers,​ ​electric vehicle​ ​manufacturers​ ​and​ ​technology​ ​suppliers.

Piclo​ ​Platform

Open​ ​Utility​ ​is​ ​becoming​ ​a​ ​global​ ​leader​ ​in​ ​software​ ​infrastructure​ ​for​ ​decentralised​ ​energy through​ ​their​ ​Piclo​ ​Platform.​ ​The​ ​flexibility​ ​marketplace​ ​will​ ​become​ ​the​ ​latest​ ​service​ ​to​ ​be offered​ ​on​ ​the​ ​platform.

The​ ​first​ ​commercial​ ​service​ ​on​ ​the​ ​Piclo​ ​Platform​ ​is​ ​a​ ​peer-to-peer​ ​(P2P)​ ​energy​ ​matching service​ ​for​ ​businesses​ ​who​ ​want​ ​to​ ​buy​ ​from​ ​local​ ​renewable​ ​generators.​ ​Open​ ​Utility​ ​trialed the​ ​P2P​ ​service​ ​through​ ​funding​ ​from​ ​a​ ​previous​ ​EEF​ ​award​ ​from​ ​the​ ​government​ ​in​ ​2014,​ ​and subsequently​ ​launched​ ​a​ ​commercial​ ​version​ ​with​ ​Good​ ​Energy​ ​in​ ​2016.​ ​Open​ ​Utility​ ​is​ ​now setting​ ​up​ ​trials​ ​of​ ​the​ ​P2P​ ​matching​ ​service​ ​in​ ​Italy​ ​in​ ​partnership​ ​with​ ​ERG​ ​and​ ​in​ ​the Netherlands​ ​in​ ​partnership​ ​with​ ​Essent.

About​ ​Open​ ​Utility

About​ ​Open​ ​Utility​ ​is​ ​an​ ​ambitious​ ​software​ ​company​ ​based​ ​in​ ​London.​ ​In​ ​2015​ ​Open​ ​Utility launched​ ​their​ ​flagship​ ​Piclo®​ ​peer-to-peer​ ​energy​ ​marketplace​ ​for​ ​UK​ ​business​ ​customers with​ ​their​ ​first​ ​partner​ ​Good​ ​Energy.​ ​In​ ​2017​ ​Open​ ​Utility​ ​is​ ​expanding​ ​the​ ​Piclo®​ ​service​ ​in selected​ ​international​ ​markets.​ ​Open​ ​Utility​ ​has​ ​secured​ ​£1.5million​ ​of​ ​funding,​ ​including grants​ ​from​ ​DECC​ ​and​ ​private​ ​investment​ ​from​ ​Ian​ ​Marchant,​ ​former​ ​CEO​ ​of​ ​SSE.​ ​Open​ ​Utility has​ ​been​ ​named​ ​by​ ​Bloomberg​ ​as​ ​one​ ​of​ ​the​ ​UK’s​ ​top​ ​50​ ​Business​ ​Innovators​ ​and​ ​won​ ​Startup of​ ​the​ ​Year​ ​at​ ​European​ ​Utility​ ​Week.​ ​​ ​More​ ​information​ ​is​ ​available​ ​at: www.openutility.com/piclo

Footnotes:

1​ ​Upgrading​ ​Our​ ​Energy​ ​System:​ ​Smart​ ​Systems​ ​and​ ​Flexibility​ ​Plan,​ ​BEIS​ ​and​ ​Ofgem,​ ​July 2017, https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/633442/upg rading-our-energy-system-july-2017.pdf

2​ ​Flexibility​ ​Services:​ ​Invitation​ ​for​ ​Expressions​ ​of​ ​Interest,​ ​UK​ ​Power​ ​Networks, http://www.ukpowernetworks.co.uk/internet/en/have-your-say/documents/Flex_EoI_Aug17.pdf