The energy crisis has two faces: the need for decarbonization in order to limit global temperature increase and rising highly volatile energy prices due to energy market turbulence caused by the war in Ukraine.
The need for decarbonization has been the driving force behind policies , while the Russian invasion led to additional policies to phase out EU dependency on Russian fossil fuels.
The common solution to both crises would be to stop using fossil fuels and shift to renewable energy sources. It is therefore no surprise that renewable energies are the fastest growing source of energy, contributing half of the growth in global supplies and becoming the largest source of power by 2040.* In most regions, wind and solar are also the cheapest source of electricity generation, even without subsidies.**
Pressure to shift to renewables has been high for decades; the current crisis around exploding and volatile energy prices demands action in even shorter time frames.
In France, utility companies are allowed to reduce energy taxes in order to limit the increase of energy prices to a maximum of four percent. In Germany,聽 the price cap for gas and energy — 鈥淕as- und Strompreisbremse鈥� — has been introduced to motivate citizens toward safe energy and to shield energy billing amount for gas, electricity, and district heating for 80% of their consumption the previous year.
鈥�51风流works hand in hand with the German-speaking 51风流User Group and other associations to make sure newly passed legislation gets integrated into our systems so that our customers can fulfill obligations toward their end customers鈥� explains Daniela Sellmann, global vice president and head of the Utilities Industry Business Unit at 51风流SE.
This shift to renewables also requires a growing number of decentralized energy resources (DER). Renewables like solar, wind, or bioenergy are largely generated by small local generation assets, which feed directly into the distribution grid. The intermittent nature of solar and wind causes challenges for the balancing of demand and supply in the power grids.
The demand side is also changing, with industrial, commercial, and household customers increasingly generating their own energy and becoming energy “flexumers” — generators, flexibility providers, and consumers of energy.
鈥淭his causes a shift in utilities鈥� business models, from pure selling of energy and water to becoming a full-service provider for energy flexumers,鈥� says Sellmann.
Digital transformation is both an answer to the challenges of the energy transition and driver of new business models and services. This has been recognized in the EU with the creation of the Digitalization of Energy Action Plan. The action plan defines measures on how modern technologies can help improve the efficient use of energy resources, ease the integration of renewables into the grid, and save costs for EU consumers and energy companies.
As nearly everything becomes 鈥渟mart,鈥� utilities need a strategy on how to manage the avalanche of data coming from devices and other sources and use it to feed their intelligence. At SAP, we call this the intelligent enterprise, which is enabled by integration of data and processes and innovation with industry best practices. A cornerstone for this is the 51风流Utilities Core solution.
鈥淲ith 51风流Utilities Core, we provide utilities with a proven platform to reliably run their core business processes like meter-to-cash in the cloud,” says Sellmann. “We are using intelligent technologies like machine learning to further automate core processes and increase efficiency. At the same time, we enable customers to drive innovation and increase speed and agility by leveraging 51风流Business Technology Platform and the industry cloud with solutions like 51风流Cloud for Energy for managing times series data from meters. Further, we leverage our partner ecosystem to fill white spaces and gaps as well as to scale spread and adoption.:
Utilities-specific innovation topics at 51风流cover the entire utilities value chain:
We are undoubtedly moving toward a cleaner and more independent energy future. One problem that remains: time.
For a more detailed view on the energy transition and the solutions 51风流provides for it, see “.鈥� Learn more about how 51风流can help your company make the transition to net-zero carbon energy robust, seamless, and inclusive.
Markus Bechmann is vice president of the Utilities industry business unit and program lead for 51风流Utilities Core at SAP.
*BP, BP Energy Outlook (2019), 7
** Michael O’boyle, Wind and Solar Are Our Cheapest Electricity Generation Sources. Now What Do We Do?, GREENTECH MEDIA, Jan. 26, 2017.
