Forget flying cars and robot butlers – is the real revolution already here, in your electric car or even your smart home speaker?
Following Ofgem’s decision to allow Virtual Lead Partners (VLPs) to open the doors of the energy market, the invitation is now there for tech giants like Tesla, Amazon, Google, and Apple to join a party that, potentially, they were not planning on attending. Is this a dawn of new tech innovation in the energy market, or are we slowly walking into a new power dynamic where the tech giants are the real beneficiaries of this new world? You could argue, do we really care as long as our screens stay on and our batteries are charged?
Imagine the future where:
- Your Tesla battery becomes a money-making machine, selling unused power back to the grid when demand (and prices) spikes.
- Your Amazon Echo whispers sweet nothings about energy efficiency, dimming the lights and adjusting your thermostat based on real-time grid needs.
- Your Google Assistant transforms into a personal energy guru, suggesting ways to reduce your consumption and score sweet rewards for participating in demand response programs.
We must embrace this revolution but not lose sight of the consequences and risks that must be addressed and managed through this exciting journey:
- Data, and lots of, it everywhere: Are we comfortable with tech giants accessing our most intimate energy consumption habits? Will this data be used to nudge us towards “sustainable” choices or simply line their pockets?
- Monopoly: Can we trust these tech titans to play fair in a market traditionally dominated by established players? Or will they use their vast resources to squeeze out smaller competitors, new innovations, and create a new kind of monopoly?
- Complexity: Will VLPs truly empower consumers or simply create a new layer of complexity, leaving us more confused and reliant on tech companies than ever before?
The VLP revolution is upon us, but the question remains: Are we prepared for the potential consequences? Before we embrace this new energy order, have we got the controls established to manage the risks that will ensure this revolution is fair and benefits all?
Engage Consulting
At Engage, we have a team of expert consultants with extensive experience of the energy sector Market Arrangements and the challenges that changes in these have on your business. We have the experience, expertise, and commitment to help you succeed, and we are working with clients today who are investing in Engage to realise the benefits on offer to them. We can support industry participants in the development of a Demand Side Response Strategy, insight into the current landscape, support you in understanding data and how these will support new products and services and the readiness of your third parties to support you in delivering these. As a business, we are motivated by the overarching goal of a lower carbon energy system that provides affordable energy to consumers
Contact us today to learn more about how we can help you realise the benefits on offer.