“Nowy Przemysł” magazine: how will the value of the real estate market increase as a result of the transformation of the energy industry?

The 10th European Economic Congress is held in Katowice on 10-12th May. New issue of  ”Nowy Przemysł” magazine covering the event published a text by Virtual Power Plant’s CEO: “How will the value of the real estate market change as a result of the transformation of the energy industry?”.

Full article below.

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The better we are able to satisfy our basic needs, the more we pay attention to healthy lifestyle and comfort. We want to live in a green environment at both home and at work. Often providing high comfort levels is in conflict with being energy efficient, since air quality is dependent on complex processes implemented in building’s ventilation systems. The progress of civilization surprises us every once and again also in other fields of technology. Soon hundreds of thousands of electric cars on European roads will topple the traditional rules of electric energy distribution and the market value of commercial estates will be measured by new criteria such as how many fast chargers for electric cars are available or how to maintain comfort for tenants while keeping the minimal carbon footprint.

New offers from energy companies

The competition amongst energy suppliers is getting bigger. The question is how traditional energy companies can maintain competitive advantage in the race for customers by introducing a new product offering? Such offer would meet the expectations of managers of commercial estates, as long as traditional energy contacts could be combined with promoting rational energy consumption by providing services to manage the fleets of electric vehicles.

From the point of view of property managers, the costs of electric energy is a significant factor in the overall costs incurred by users of modern office buildings, however even more important is ergonomics and reducing the number of employees’ sickness leaves.

We should consume energy rationally

What’s hiding behind the term “rational energy consumption”? Due to the increased demand for energy during peak hours, a new measure of rational energy consumption has emerged. It is expressed in reducing energy consumption during the hours of peak demand by shifting the consumption to off-peak hours.

What is interesting is that high demand for energy in the grid is revealed only during several dozen hours of the year but requires readiness of about 10% of all the generating capacity of European power plants. Electricity generated by those power plants, used annually only 1% of the time is many times more expensive than electricity generated by power plants working for many months. The alternative for generating expensive energy from such power plants is to substitute them with so-called virtual power plants.Nowy Przemysł, 2/2017


oBEMS (office building energy management system)

The purpose of Virtual Power Plant is to prevent black outs, or uncontrolled power outages. Interestingly,  thanks to the mechanisms of virtual power plants on the same distribution infrastructure it will be possible to more effectively charge more electric cars. Virtual power plants are a technical platform that reduces the risk of high prices on wholesale market from the perspective of energy sellers, or power suppliers.

Generally, building managers are paying for energy to power suppliers at flat price rates, even though power suppliers are buying energy on wholesale market at a price different for each hour of the day. The price of energy bought by power supplier can be many times higher than price offered to energy consumers. By shifting the demand to off-peak hours we will generate savings for power supplier. It is enough to rationally manage energy intensive processes, such as ventilation and air-conditioning in modern buildings, by adjusting the consumption to the prices on wholesale market. The main condition though, is to shift the demand while maintaining comfort for the tenants of optimized spaces.

A new technology called oBEMS developed by Virtual Power Plant company is based on a similar idea. oBEMS is dedicated to office buildings equipped with EnablerDSR technology. After the implementation of EnablerDSR, the infrastructure of optimized buildings becomes a part of virtual power plant. In this exemplary way the market value of commercial buildings can increase thanks to the transformation of energy industry.

Grzegorz Nowaczewski
CEO Virtual Power Plant


Nowy Przemysł, 2/2017

 This text was published 

in issue 2/2017 of “Nowy Przemysł” magazine