Sympower is currently active in 10 European countries. How do you decide on the expansion strategy of the company?
When it comes to expanding Sympower's reach across Europe, our decision-making process is rooted in several key factors. First and foremost, we prioritise impact. We want to be active where we can make the most significant difference, which means targeting countries where Demand-Side Flexibility (DSF) regulations are conducive to our operations. Only then can we successfully participate in the market and maximise the value generated for our customers and the grid.
Additionally, we pay attention to regions experiencing growth in renewable energy installations. That indicates a need for our flexibility services and presents an opportunity to contribute to a more sustainable energy landscape. By carefully considering these criteria, we ensure that our expansion efforts are strategic and aligned with our mission of driving positive change in the energy sector.
You mentioned favourable rules that allow the participation of Demand-Side Flexibility. What do you mean by that exactly?
Several aspects are crucial when referring to favourable rules for Demand-Side Flexibility participation. Firstly, a country allowing independent aggregation empowers businesses to take a more active role in balancing markets. They can choose their preferred flexibility services provider, even if their energy supplier doesn't offer demand response services directly. Consumers can then participate in demand response initiatives regardless of their energy supplier's stance. It is also important that barriers such as supplier agreements or compensation requirements are eliminated to streamline and incentivise participation.
Payment models also play a significant role in incentivising participation. We advocate for compensation structures that reward businesses for making their energy assets available and also compensate them when they are actively deployed to address grid needs.
Lastly, allowing bidding of small-capacity assets reduces the aggregation threshold, making it easier for smaller assets to participate. Aggregating loads of all sizes demonstrates reliability, cost-effectiveness, and environmental sustainability, a win-win scenario for all stakeholders involved in the energy market: participating businesses, flexibility services providers, and grid operators.
Can you share any success stories or case studies from Sympower's expansion efforts?
Absolutely. One success story we are particularly proud of is our expansion into Greece. Our collaboration with Greek Transmission System Operator ADMIE began in 2020 when the Greek TSO recognised our extensive experience in Demand-Side Flexibility and selected our local experts to support them with the opening of balancing markets. Drawing on almost a decade of European experience, our international expert teams worked closely with our Greek counterparts to anticipate the Greek TSO's needs, questions, and potential objections.
Working hand in hand with ADMIE gave us a great understanding of the Greek market's specificities, allowing us to tailor our platform accordingly and develop specific tools to address local requirements. All this resulted in the successful opening of balancing markets for demand response in 2022, with Sympower being the first independent flexibility services provider to enter the market.
Is there anything challenging about having a pan-European footprint nowadays?
Yes, some challenges do come with that, primarily stemming from the diversity of regulation, terminology, and IT systems across different countries. Each country has its own set of rules and regulations, often expressed in local languages, making it challenging to navigate the regulatory landscape. At the same time, this forces us to grow our knowledge and expertise within the company. So it’s a good kind of challenge.
How about the benefits?
Well, when it comes to the benefits, they definitely outweigh the challenges. Like I mentioned, operating in multiple countries allows us to accumulate a wealth of expertise and experience across diverse markets. This expertise enables us to better serve our customers and navigate the complexities of different regulatory environments. Moreover, for customers with production plants in multiple countries within the EU, a single contract with Sympower streamlines operations and offers greater convenience. The potential of DSF is huge and as more and more countries are embracing Demand-Side Flexibility, our goal is to provide seamless, comprehensive energy solutions for businesses of all sizes across the continent.
