Battery storage and flexibility for municipal utilities

How municipal energy suppliers benefit from flexibility markets and battery storage and actively shape the future

The energy transition is not only changing technical systems, it is also putting the business models of municipal utilities to the test. Decentralized generation, volatile feed-in, increasing grid requirements and new customer expectations are challenging us to rethink.

But it is precisely this change that offers tangible opportunities. Storage technologies and flexibility markets are opening up new revenue streams, strategic positioning and the opportunity to actively shape the future of energy for municipal energy suppliers.

Flexibility as a key competence

Battery storage and flexibility services are increasingly seen as key factors for a stable, economical and sustainable energy supply. They enable municipal utilities to respond to new challenges with marketable solutions:

• Relieve local grids
• Provide balancing energy
• Smooth load peaks
• Optimize own generation
• Develop new services for commerce, industry and neighborhoods

Especially against the backdrop of Redispatch 2.0, new regulatory framework conditions and increasing complexity in grid management, these technologies are becoming a strategic asset.

Four fields of action for new value creation

In joint projects with municipal utilities, EARLY BRANDS has identified four key fields of action in which storage and flexibility can be specifically transferred into new business models. In the following, we show specific approaches and design options for each of these fields:

1. 1. revenue sources & growth

• Grid-serving large-scale battery storage: revenue from grid services, peak shaving and spot market trading
• Energy-as-a-Service: storage and load management solutions for business customers without own investments
• Neighborhood solutions: Integration of PV, battery storage and charging infrastructure in residential and commercial areas
• Sector coupling for industry: efficiently networking electricity, heat and mobility for large-scale consumers

2. 2. leverage value potential

• Heat storage for industrial processes
• Self-consumption optimization in the municipal utility, e.g. by optimizing electricity costs in the waterworks through battery storage
• Co-location of renewables & storage for flexibilization

3. 3. seize the opportunities of the digital transformation

• Virtual power plants (VPP) for better market integration
• Dynamic electricity tariffs via smart metering
• Microgrids & energy management as a service

4. 4. future viability through resilience

• Blackout prevention through storage solutions
• Demand-side management in real time
• Temporary storage solutions for critical infrastructures

Microgrids as a resilient and independent energy solution for industrial and commercial customers.

From potential to implementation – with a sense of proportion and experience

Many municipal energy suppliers have recognized that flexibility strategies and storage technologies can not only achieve ecological goals, but also open up new earnings potential. But which models make economic sense, which can be implemented with existing personnel and what is really relevant to the market?

EARLY BRANDS provides practical support on these issues, with a clear focus on what is feasible. In close cooperation with municipal utilities, viable concepts are developed within a few weeks, which are

• can be realized on the market within 12-24 months,
• build on existing structures,
• and are validated by employees and customer/market feedback.
  Our experience in innovation and technology consulting in the field of energy storage and flexibility strategies shows that it is not just the strategy that is decisive: It is not just the strategy that is decisive, but the way to get there. From the conception, support during implementation with excellent technology partners and ongoing integration of the ideas of employees and customers.

Actively shaping the future

The future of energy is no longer abstract – it is happening locally: in municipal utilities, in neighborhoods, in industrial partnerships. Those who consistently invest in flexibility and storage today can position themselves in new markets, mitigate risks and strengthen their own resilience.

Figure: Teamwork meets method: agile innovation approaches create business models for the municipal energy transition

EARLY BRANDS brings many years of practical experience to the table. Whether in the development of battery storage projects with a capacity of over 100 MW, in strategic innovation processes or through active participation in specialist committees such as the working groups on large-scale storage and financing in the German Energy Storage Systems Association (BVES). Involvement in the VKU Association of Municipal Enterprises also contributes to this.
Municipal utilities that recognize these opportunities are not only securing their future viability, but are also actively shaping how supply, economic efficiency and sustainability will interact in the future.

Catch the Future…!