The energy transition cannot wait and requires large amounts of new fossil-free energy. By 2045, electricity consumption is expected to double. The problem, however, is that the existing power grid lacks the capacity to handle this increased consumption, which will require changes in customer behavior and new contract solutions.
This is emphasized by Digpro’s Sales Director and Vice CEO, Jonas Jacobsson, and Evado’s CEO, Rickard Hellgren, who are launching a new concept in response to this challenge.
“The model of hourly contracts is outdated,” says Jonas Jacobsson. “It incentivizes customers to shift their electricity consumption to times when prices are lowest. But when everyone does this simultaneously, the power grid risks becoming overloaded. The future, instead, is about finding a balance between electricity production, grid capacity, and consumer behaviors.”
Electricity production has undergone significant changes over the past 20 years in Sweden. During this time, wind power has increased by almost 900 percent, growing from an insignificant part of total electricity production to now accounting for one-fifth. Solar power represents less than one percent but is expected to grow. In other words, electricity production has become increasingly variable, depending on weather conditions.
Instruments for optimized consumption
Digpro has 30 years of experience in mapping the power grid to analyze and understand both distribution and consumption.
“Our system creates a digital twin of the grid – now also enhanced by AI and machine learning. With our software, grid owners can make their own forecasts and analyses,” says Jonas Jacobsson.
In the long term, the power grid can be expanded – though at great cost – and supplemented with batteries to store surplus electricity, but in the short term, consumption must be optimized to available electricity production and grid capacity.
This is where Digpro’s concept comes into play. In May 2024, Digpro acquired Evado, a company that offers apps with detailed information about electricity usage and costs for the end customer. Together, Digpro and Evado provide a way forward where both the energy company and its customers are offered various control mechanisms. For example, consumption is not based on the lowest hourly rate but at times optimal for availability and grid capacity. Customers are offered compensation and guaranteed a certain comfort level, such as having their electric car charged to ‘only’ 80 percent.
The concept is still in its early stages – the acquisition was only recently completed – but several pilot projects are already underway.
“The energy transition will continue for a long time, and stable suppliers are essential. That’s why we at Evado are proud to now be part of Digpro,” says Rickard Hellgren. “It’s important to start the work now, but it must be done methodically and adapted to the specific conditions of each energy company.”
CEO Evado – part of Digpro
Director of Sales and Deputy CEO, Digpro
About Evado
Evado offers mobile solutions and digital business, as well as operational development for energy companies, municipalities, and municipal operations. The products are primarily used in the areas of energy, water, waste, and heating. Read more about the acquisition.
This text was originally published on di.se in September 2024.