Article in ew magazine: Visualisation solutions for dynamic tariffs

The energy transition in Germany is making progress. In 2023, the share of renewable energies in electricity generation rose to well over 50%, as the progress monitor from BDEW and EY shows. According to reports from the Federal Statistical Office (Destatis), around 3.4 million photovoltaic systems were installed in April 2024, around 25% more than at the same time in the previous year. This growth on the supply side is increasingly leading to negative electricity prices while demand remains the same. The CHP Info Centre expects around 100 days and more than 500 hours in 2024 in which negative electricity prices occurred on the Epex Spot electricity exchange. At the same time, the increased electricity feed-in from photovoltaic systems in lines that are not designed for this also increases the risk of grid overloads. Such phases pose a challenge for the energy market and require solutions that enable both suppliers and consumers to benefit from the fluctuations and protect themselves against them.

It was discussed for a long time, but has now become mandatory for all electricity providers and a necessity for the German economy: dynamic tariffs. However, many end users are still not really clear about what this is all about, as the ‘Digital Energy Transition Monitor’ by Enpal shows. According to the survey, almost 46% of respondents are still unsure about the costs of using a dynamic electricity tariff.

The aim of dynamic tariffs is to better harmonise electricity supply and demand. They enable consumers to adjust their electricity consumption to the current price situation and thus benefit from low or even negative electricity prices - as well as regulating the grid load at peak times. For the latter reason in particular, the topic is becoming increasingly important and regulators are now referring to the rollout of smart metering systems as a control rollout rather than a metering rollout. After a lengthy review, the German Federal Office for Information Security (BSI) has now certified control boxes in accordance with the technical guideline provided for this purpose. This means that shortages and overloads in the smart grid can be avoided, while prosumers can optimise their costs through flexible tariffs.

Transparent price overview for informed decisions

In order for end customers to be able to react optimally to fluctuating prices, they need a transparent and comprehensible visualisation of price developments and the respective effects on costs. The EnergyCockpit - a white-label SaaS solution from GreenPocket - provides private customers and small businesses with a clear visualisation of the Epex spot exchange price in day-ahead trading, enabling them to make informed decisions regarding their electricity consumption. The customer can easily recognise when electricity will be cheapest in the next few hours and on the next day and consequently control the charging of their electric vehicle accordingly, for example.

This gives end customers the opportunity to plan their energy consumption in a cost-orientated manner and, ideally, to control it via a home energy management system (HEMS). Using an intelligent algorithm, the HEMS can, for example, automatically schedule the operation of a heat pump or the charging process of an electric car for times when electricity prices are low or negative, meaning that households not only reduce costs but also actively contribute to the stability of the electricity grid.

The algorithm achieves something that only additional hardware could do as an alternative - it ensures that all devices work together and in coordination to provide the best possible prices for the customer. Finally, the customer must be informed at the customer interface. This is done with the help of push notifications, status displays or other notifications. The EEBus standard can play a decisive role here, as it enables smooth, manufacturer- and technology-independent communication between devices. In future, this will also be used as the basis for controlling PV systems, storage devices, etc. and thus link the grid-connected assets with the HEMS assets - be it to charge an electric car, operate a heat pump or recharge an electricity storage unit. One thing is certain: the HEMS offerings on the market are becoming increasingly diverse - broad market penetration will materialise when the environmental conditions are suitable for mass use.

Dynamic tariffs: An underestimated potential for suppliers and end customers

Suppliers are currently still finding it difficult to assess the benefits of dynamic tariffs. This is understandable, as only just under 1 million of around 50 million possible smart metering systems have been installed so far, meaning that not even 2% of consumers can utilise the benefits of this technology. But what is often forgotten: Dynamic electricity tariffs, which are based on the Epex spot exchange price, can be used not only by households with a smart metering system, but also by the more than 40 million SLP customers. These customers can also reduce their electricity costs by up to 30 % with the help of dynamic tariffs, as innovative players such as Rabotcharge and Tibber show. This potential and the opportunity to improve customer service are still often underestimated by suppliers.

There was also a lot of uncertainty and concern around the topic of billing. But there is no longer any reason for this. In the GreenPocket system, the end consumer is not only shown the current exchange price, but also the entire electricity price thanks to the cooperation with Solarize. As an expert in billing, Solarize offers the option of transferring the billing values to the supplier's ERP system and thus providing an invoice for the end consumer. This removes a showstopper for many suppliers, enabling them to include dynamic tariffs in their product portfolio on a mass scale in future.

Dynamic grid fees from April 2025

In addition to the dynamic tariffs, grid operators will also have to offer dynamic grid charges from April 2025, which, according to the Federal Network Agency, will also help to stabilise the electricity grid. For example, anyone who charges their electric car in the morning rather than in the evening at peak load times will benefit from lower grid charges and at the same time contribute to a more balanced utilisation of the electricity grid. The prerequisite for this is a smart metering system.

GreenPocket: Visualisation solutions for companies and private customers

Grid operators, metering point operators and energy suppliers, as well as large commercial customers, are obliged by various laws to offer energy management solutions. Apart from this, climate change and a rethink in society demand intelligent solutions that help to reduce energy consumption and CO2 emissions. GreenPocket's mission is to use intuitive software to make energy management so easy that it becomes a matter of course for everyone - whether a company or a private household. GreenPocket uses data-driven software solutions to help energy suppliers and their customers to effectively reduce their energy consumption and carbon footprint. The AI-driven software brings intelligence to data volumes, turning the digitalisation of the energy sector into a real opportunity. As a specialist in energy management and visualisation software, GreenPocket has already successfully implemented over 200 projects with national and international energy suppliers, and over 5,000 commercial customers are using the tools on their way to climate neutrality.

To the issue of ew magazine: ew 02/2025 | ew magazine

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