The rapid advancement of both large and small intermittent generation capacities has raised as the most pressing problem for the energy sector today. We recently had the chance of a conversation with Răzvan Rădulescu, CEO Software Media WEBUS 4 ENERGY, at Energynomics Talks. He advanced several possible solutions to the imbalances. One of them is related to using energy management systems, and we presented it earlier. Another promising solution lies in better integrating consumers and producers.
This approach involves creating a more dynamic and interactive market environment where consumers can respond to real-time price signals and adjust their consumption accordingly. By aligning consumption patterns with production, we can achieve a more balanced and efficient energy system. This requires not only technological advancements but also a shift in market and commercial behaviors to foster collaboration and flexibility.
“With large consumers, we go and see what their consumption behavior is and propose a totally digitalized supplier,” explains Răzvan Rădulescu. “I have larger consumers for whom I see consumption every five minutes and I have producers where I control production. [As a business], the integrated system is totally decoupled [from the national grid] and works as a digitalized energy island.”
There is no need for physical connection between the parties involved in the system, only meters that obtain information and transmit it remotely for processing and decision-making. With the WEBUS 4 ENERGY equipment and platform, “we are helping all parties, suppliers, consumers and producers. When we balance them all, prices go down because we eliminate imbalances and unpredictability goes down.”
The role of battery storage in tackling imbalances
Battery storage is integral to addressing the imbalances posed by intermittent renewable energy sources, says Răzvan Rădulescu. In addition, “there is no decarbonization without storage”. In the context of PV plants, batteries ensure consistent energy availability and cost efficiency. They also enable a more dynamic interaction between consumers and producers, promoting more predictable energy profiles and efficiency on both the operational and commercial fronts.
However, there is much talking, but crucial steps are yet to be made in order to really support deployment of battery storage systems at large scales. “The battery alone does nothing without energy control and management systems. We helped to carry out feasibility studies for the submission of projects financed by the Modernization Fund (cumulative capacities of 200 MW, editor’s note), where 10 points out of 100 are awarded for storage. In addition to batteries, energy management solutions should also be included in the applicant’s guide,” advocates Răzvan Rădulescu.
According to him, investing in storage will solve the problem of price differences between midday and peak hours. On the other hand, investing in storage just to monetize these price differences could be risky if not accompanied by investment in new generation capacity: “in the long run, evening prices will come down because more players will emerge” interested in this type of business.
On the other hand, Răzvan Rădulescu is not necessarily concerned about the risk of cannibalization between renewable generation projects – the reduction in selling prices and returns on investment as new capacity is deployed, because “we need very large investments in renewable generation” to replace existing fossil-based units.
In order to accelerate the development of the energy market, not least through the adoption of such technological solutions and business models, more information is needed, says Răzvan Rădulescu. “We have started to do that and we bring concrete data as arguments. The results are tangible,” he says, claiming that the Software Media team has managed to reduce imbalances by 80% without using storage solutions and without intraday market purchases, and by 90% when intraday market purchases were also involved.
