New business models are within reach
'P2P can't be done due to regulatory limitations', is something we hear quite a lot. At ENTRNCE, we feel that is just a matter of (mis)interpretation. And of somewhat rigid retailer back-end systems…
As we move towards a more decentralised market, it's evident that consumers and businesses are becoming more and more independent. Rooftop solar is adding to those levels of autonomy, but freedom of choice - choosing your own external power source - is not readily available in the market.
Sure, there are community initiatives out there, but actual p2p trading between generators and consumers is hardly catered for. We all understand a retailer licence has to be in place to trade power in any form, but what is holding licensed retailers back to explore these business opportunities? Why aren't they embracing this local focus, which is stimulated at European level?
“P2P can't be done due to regulatory limitations, is something we hear quite a lot. At ENTRNCE, we feel that is just a matter of (mis)interpretation. And of somewhat rigid retailer back-end systems.”
The anwers to those questions lie in how utilities have become used to managing portfolio's in their communication with ESO's and market administrators: their aggregated back-end approach to forecasting and settlement isn't designed to facilitate bilateral transactions between individual consumers and generators. This requires a certain level of de-aggregation: data processing at metering point level.
With the ENTRNCE Trader, we allow retailers to offer customers actual p2p trading, all within the regulatory framework of the market. We settle transactions financially and close imbalance positions of individual MPANS. The tech is here; actual energy communities are closer than you think. And ambitious retailers should be grasping at these new opportunities.