Grzegorz Nowaczewski (VPPlant): Many building owners or managers do not realize how easy it is to achieve savings

The Virtual Power Plant plays a pivotal role in assisting businesses, public institutions, and various entities in effectively managing their energy consumption within buildings. This task is accomplished by harnessing the power of artificial intelligence, which contributes to sustainable cost reductions and a decreased environmental impact in the form of a smaller carbon footprint.

Grzegorz Nowaczewski, CEO of the Virtual Power Plant, shared insights into their unique solutions, the distinct nature of the market, and the current state of commercial buildings in Poland. This innovative approach not only empowers organizations to optimize their energy usage but also contributes to their commitment to environmental responsibility.

What is and how does a virtual power plant work?

A virtual power plant represents a crucial multi-tiered energy management system that’s becoming increasingly essential for effectively powering our world with electricity in the coming years. This might seem like an abstract concept, given our accustomed access to readily available and affordable electricity from outlets.

We’ve seen energy challenges in places like California and Australia, and Europe too is expected to face more frequent issues in balancing electricity demand and supply in the near future. Despite significant research efforts, large-scale, cost-effective energy storage remains a challenge. As the share of renewable energy sources (RES) grows in the energy mix, coupled with insufficient distribution infrastructure, worrisome trends emerge. The pace of investment in this infrastructure hasn’t kept up with demands or lacks economic justification. In this context, virtual power plants step in to bridge the gap, serving as a complementary solution to traditional investment approaches.

Virtual power plants are crafted through innovative algorithms that redefine the logic of consumption, buffering, grid access, and power generation from distributed or conventional sources. Their seamless integration with existing, often varied infrastructures in buildings, production facilities, logistics, and public spaces is crucial.

The widespread adoption of virtual power plants will play a pivotal role in facilitating a smooth transition from reliance on fossil fuels to embracing renewable energy sources. By addressing the complexities of energy distribution, management, and optimization, virtual power plants are a key tool in shaping a sustainable and resilient energy future.

How does VPPlant help Polish entrepreneurs and other entities to improve energy efficiency?

We actively engage in sharing insights about the evolving energy landscape, the synergistic utilization of complementary technologies, and access to our proprietary optimization platform named EnablerDSR. This platform emerged from collaborative research endeavors with Polish scientists and received support from the National Center for Research and Development. EnablerDSR functions as an overlay atop existing building automation systems. It maximizes the utilization of current technical infrastructures, enhances metering capabilities, and prepares active energy consumers for the implementation of novel business models and energy company products.

Our role extends as a technology partner across numerous optimization initiatives. We enhance previous efforts by working alongside our partners to construct a comprehensive strategy for permanently reducing carbon emissions. Our commercial operations currently span Poland, the Czech Republic, Austria, Germany, and we’re soon expanding into additional countries. Through these endeavors, we aim to foster sustainable energy practices and contribute to a greener future on a broader scale.

What is the condition of facilities in Polish cities (office buildings, public utility buildings, etc.) in this respect? Have there been any changes in recent years?

The vast majority of public utility buildings have undergone or are undergoing various modernization activities in recent years in order to reduce the costs of electricity and heat. Saving energy today is actually a patriotic duty.

Poland’s commercial infrastructure, particularly high-quality office spaces and shopping centers, is relatively young when compared to Western European counterparts. These structures encompass an impressive total area exceeding 30 million square meters. Notably, the spacious usable floor area of these commercial buildings lends itself to more effective energy management. The landscape is also dotted with numerous public utility buildings, including educational, sports, cultural, and medical facilities, both in terms of numbers and size.

The potential for enhancing energy efficiency within Poland is substantial. Achieving success hinges on skillfully integrating cutting-edge technologies and engineering expertise, coupled with a concurrent shift in everyday technical service standards. This transformation has the potential to yield results beyond our initial expectations.

Many public utility buildings have recently undergone or are currently undergoing modernization initiatives aimed at curbing electricity and heating costs. In today’s context, energy conservation stands as a patriotic responsibility.

However, there’s a tendency to place unwavering trust in marketing claims from vendors of photovoltaic systems, heat pumps, and thermal upgrades. Unfortunately, lapses in diligence or competence often arise when selecting and combining technologies during construction, renovation, and subsequent operations. A poorly chosen heat pump or inaccurately installed photovoltaic system can fail to deliver the anticipated savings.

Given the imperative of addressing climate challenges, future waves of renovations are inevitable. One can only hope that these endeavors will be executed more meticulously and thoughtfully than before, ensuring that energy-saving efforts align with both environmental and economic objectives.

Is ecological and energy awareness in Polish society growing? Building owners want to improve their energy efficiency?

Awareness is undoubtedly on the rise, although I believe that heightened awareness alone doesn’t always translate into the widespread and substantial implementation of energy efficiency projects. Many building owners or managers remain unaware of the simplicity behind cost savings. Others opt for solutions from internationally recognized brands that may not be properly installed or utilized. It’s not sufficient to merely purchase top-notch heat pumps, install solar panels, or upgrade windows. The true impact emerges when all these elements are harmoniously integrated into a unified system, aligning with the results touted in marketing materials. Unfortunately, we lack consistent role models to celebrate and emulate. This is a gap we’re striving to bridge, and we’re witnessing successful outcomes.

Both energy consumers and energy companies are undertaking long-term modernization endeavors. Our team’s expertise and unique technology play a pivotal role in bolstering modernization projects, ensuring they are energy-efficient, automated, and operationally secure. While we didn’t initially focus on modernization a few years ago, increasing necessity has compelled us to engage in these efforts. The careful selection of areas and the strategic staging of optimization projects are critical. Typically, we observe positive outcomes emerging in the initial weeks of our collaboration, reinforcing the significance of our approach.

Where should an average entrepreneur start with effective energy management?

In the future, it will be crucial for our bills (and ecology) to what extent we are able to link energy consumption with its generation from renewable sources

We propose commencing with an in-depth analysis of optimization potential and energy flexibility. The outcome of this analysis will shape the profile of optimization projects that could be jointly pursued, pursued independently, or undertaken with our involvement.

In my view, it’s advantageous to surpass the boundaries of standard energy audits, which often rely on generalized knowledge. Engaging in the long-term electronic collection of measurement data from existing devices, coupled with supplementary measurements and correlation with facility load data and technological processes, offers a more comprehensive and often enhanced portrayal of an enterprise’s initial condition. This, in turn, facilitates more refined modernization project formulation.

However, it’s essential to not confine our analysis solely to historical data. As we move forward, energy flexibility will gain prominence. While historical energy consumption held significance, the future will place greater emphasis on our ability to synchronize energy usage with its generation from renewable sources, ideally in close proximity. Activating the distributed potential of energy flexibility and skillfully aggregating it will culminate in the formidable force of a securely managed virtual power plant in the times to come. This future-oriented perspective will guide us towards achieving both cost-efficiency and environmental stewardship.

How has the energy crisis affected the demand for your solutions?

The dynamics of electricity, natural gas, and system heat have led to a shift in their positions within the broader framework of company expenses. With energy costs on the rise, there’s been a notable surge in the demand for optimization services. In fact, optimization services have transformed into an essential and high-priority commodity for businesses.

Can artificial intelligence, blockchain and other IT solutions be the answer to today’s energy problems?

Absolutely, and it’s important to note that the technologies mentioned play a vital role in facilitating energy transformation and, on a larger scale, the digitization of the global economy. The inherent inertia within complex organizations often hampers swift adaptation to evolving environmental shifts. Nevertheless, significant qualitative shifts are anticipated even within energy companies. The incorporation of artificial intelligence seamlessly aligns with the array of solutions geared towards enhancing the competitiveness of all stakeholders within the increasingly decentralized and area-sensitive energy sector. This sector continually calls for effective balancing strategies.

In what direction will your business develop?

Shifting the instantaneous demand for energy in such a way as to maximize the use of energy from renewable sources is possible

Since our company’s inception, our guiding objective has been to bridge the energy flexibility inherent in large-scale building technical infrastructures with the evolving landscape of the professional power industry. Often, energy companies overlook the distinct business and technical intricacies of energy recipients. Yet, a meat processing facility, a swimming pool, a logistics center, and an office building each possess unique energy profiles. What’s even more intriguing is that each of these profiles can be continuously managed.

We have acquired expertise in reshaping temporary energy demand to optimize the utilization of renewable energy sources. Our trajectory will lead us to further expansion in managing energy-intensive processes and energy storage, all while considering the economics of Power Purchase Agreements and the establishment of microgrids for energy clusters or cooperatives. The establishment of virtual power plants introduces fresh challenges and breaks away from traditional conventions. It undeniably forms a crucial component of a coherent strategy geared towards achieving low emissions in developed nations.