The smart energy solutions company Ignitis has started collaboration with the Estonian start-up „Fusebox“, which plans to become the first independent demand response and flexibility supplier of electricity in Lithuania. The innovation – demand aggregation service in the country’s electricity market, also known as the „virtual power plant“, is crucial for contributing to energy security and more efficient energy use.
Independent electricity demand aggregators will provide reserve power and electricity network balancing services. „Fusebox“ is based on connecting existing hardware to a large electricity-consuming or generating unit, such as an industrial refrigerator or a small hydroelectric plant.
Independent electricity aggregators participate in electricity balancing auctions organized by the transmission system operators (TSOs) of the Baltic States. Transmission system operators take advantage of all submitted offers of aggregators and provide instructions for operative changes of electricity generation or consumption modes, if the overall balance of the Baltic States system is not maintained. In other words, aggregators ask costumers to reduce or increase their electricity consumption over a period of time, thus creating a kind of a „virtual power plant “.
Implementation of innovations and leadership in the energy sector is one of the goals set in the „Ignitis Group‘s“ strategy. This time, we are the first in Lithuania to contribute to the development of a completely new activity in the electricity market, which is strategically important for the whole country.
Independent aggregators will increase the flexibility of the Lithuanian electricity system and play an important role in the electricity balancing market. The services provided by the aggregators will be especially important after the synchronization of the electricity networks of all the Baltic States with Western Europe, when the need for capacity, maintaining the system frequency, will increase. „In this way, it will also contribute to strengthening the energy security of the whole country, “ says Darius Maikštėnas, Chairman and the CEO of Ignitis Group.
In collaboration with „Fusebox “, Ignitis will be the balance responsible party for transmission system operator, thus enabling the start-up to provide the services required for balancing the electricity network.
Representatives of FuseBox note that collaboration with electricity aggregators would allow companies that consume a lot of electricity to receive additional income. They would not have to invest in the installation of new equipment but could use existing infrastructure.
„Now FuseBox provides an opportunity for such large electricity consumers as „Rimi“, „VIA 3L“, and many others to benefit from participating in the electricity network balancing process in Lithuania as well. They can earn extra money, at the same time bringing social and economic benefits to all Lithuanian electricity consumers, “ says Tarvo Õng CEO of FuseBox.
The opportunity to provide electricity aggregation services to both companies and individuals arose in June this year after the Lithuanian Parliament approved the amendments to the Law on Electricity, which established the activity of demand aggregation.