The potential for energy flexibility and energy storage

Energy flexibility and energy storage in France and Europe

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In a true systemic approach to energy flexibility and energy storage, Orygeen defines strategies, supports companies in the realisation and integration of the chosen solution, all while taking into account all about the company’s energy performance.

Energy flexibility: the true potential for companies

The electrical network works on the basis of a constant balance between supply and demand on a European scale.

This balance involves managing the variations in consumption by adjusting production. But the opposite can also be true: the company adapts its’ consumption to the available product. This is energy flexibility. Against remuneration, companies participate in balancing by reducing their consumption or by injecting electricity on the network at certain moments, generally for limited periods. 

The shorter the delay of reactivity, the higher the remuneration, and so the interruption of electrical consumption corresponds to extreme reactivity (three seconds). 

Capacity and remuneration market for the flexibility of demand

France has created a capacity market which remunerates companies and consumers capable of producing energy to be injected into the network, and the companies with the capacity to reduce or end their consumption receive an instant donation.

Elsewhere in Europe, it is generally network operators who manage energy flexibility via bilateral contracts.

The flexibility of offer and demand

On the producers’ side, the balance of the electrical grid demands the constant adaptation of energy production capacity in order to answer for consumption highs or production shortfalls. The switching on (or end of production activity) is lead by various purchasing markets / energy sales (Day Ahead, Intraday, spare capacity…).

In terms of flexibility, certain energy sources are more adaptable than others: a nuclear plant is particularly long to start up or turn off, while a hydroelectric dam, a cogeneration or a ground of electrogenes on an industrial site allow for better reactivity.

And so the capacities for decentralised electricity production on an industrial (or even tertiary) site can gain value on the markets and participate in balancing the network.

How to make the most of energy flexibility?

For industrial sites, the logistical platforms or the big tertiary companies, energy flexibility allows the benefit of a net remuneration or to make the most of purchasing opportunities all while respecting their production and service engagements.

Untapped, underutilized or unvalued energy generation capabilities are therefore interesting levers to explore.

To improve energy efficiency, Orygeen will:

Detect the potential for production or offloading

Define valorisation solutions and exploitation procedures

Negotiate adapted valorisation contracts

Choose the management tools

Put into place the chosen solutions

Third-party finance from inherent investors

Energy storage: new opportunities for energy flexibility

The continual improvement of energy storage technologies as well as the mass production of batteries have opened the way for new opportunities in energy flexibility. 

Furthermore, the appearance of a market for ‘second life’ batteries issued from electrical vehicles and the innovations to come in storage technology will accelerate the lowering of costs.

According to the International Energy Agency (IEA), the cost of energy storage is actually divided by two every two years.

Energy storage presents three advantages:

  • the protection against electric cuts
  • the maximum valorisation of intermittent energy production (via photovoltaic or wind power) by serving as the regulatory buffer between production and consumption
  • the participation in the balance of the electrical network against remuneration. 

In matters of energy storage, Orygeen intervenes in order to:

Define the best adapted technology

Quantify and qualify the investments

Instal the solution and associated management systems

Third-party financing of entire operation