For large battery storage systems, the focus so far has been on deploying them in traditional electricity markets, such as the day-ahead market, the intra-day market, and for providing ancillary services (such as frequency response). However, a new business model is emerging: the virtual distribution of battery capacity among consumers, allowing this battery capacity to be rented as a virtual home battery.
The virtual home battery can enable so-called prosumers to rent their own energy storagecapacity without needing to physically install a battery in their home. This could help them store excess energy (for example, generated by solar panels) for later use or to trade on a peer-to-peer (P2P) energy market.
Consider the following aspects in your research
1. Technology and Infrastructure
- How can such a virtual distribution of battery capacity be technically realized? What infrastructure is needed to remotely manage and distribute the battery among different consumers?
- How is the interaction between the battery and the P2P energy market technically facilitated? What roles need to be fulfilled?
- What is the impact of a virtual home battery on national and local grid congestion?
2. Economic Feasibility
- What are the costs and benefits of renting out battery capacity to consumers instead of marketing the battery on traditional electricity markets?
- What could the pricing structure look like for consumers renting virtual storage capacity? How does this compare to the cost of purchasing a physical home battery?
- How can consumers benefit from P2P energy markets by using virtual batteries?
3. Regulation and Market Dynamics
- What regulations need to be considered for offering virtual home batteries and P2P energy trading? Are there barriers or limitations that need to be addressed?
- How would the virtual home battery fit within the proposed Energy Act?
- How could this model impact current electricity markets and the role of energy suppliers? Are there potential conflicts or synergies?
Based on your findings, formulate an advisory report for RWE: Should RWE explore this new model of virtual home batteries, and if so, under what conditions and with what strategy?
For over 100 years we have been making electricity in the Benelux, and we do so in an increasingly sustainable way. We continue to reduce the use of fossil energy sources such as gas and coal. And we invest heavily in renewable energy sources such as wind and solar. RWE is the driving force behind the energy transition, investing 55 billion euros from 2024 to 2030 in making our energy production more sustainable worldwide. Moreover, we are exploring innovative solutions such as the use of batteries and hydrogen.