Revolutionizing Energy Grids: Exaum Develops New Business Models for Grid Balancing

Climate change mitigation has catalyzed a global shift toward renewable energy sources. Finland, committed to this cause, aims to eliminate fossil fuels from its energy mix by 2035, paving the way for renewables like wind and solar power. However, integrating renewables presents challenges, as their production lacks the controllability of traditional fossil fuel-based plants. Enter reserve capacity—a vital component for balancing the grid in the face of fluctuating renewable energy output.

While reserve capacity is crucial for grid stability, its production and delivery pose significant challenges. Traditional methods are costly, inefficient, not environment-friendly, and often fall short of meeting the dynamic demands of modern energy grids. National grid operators grapple with the need for flexible solutions that can adapt to changing conditions in real-time.

To tackle these challenges, Exaum, with the support of the Finnish Centre for Economic Development, Transport and Environment (ELY Centre) and EU Structural Funds, undertook a successful business model development project from February 20th 2023, to March 31st, 2024.

The project aimed to build a transformative approach to reserve markets, focusing on providing flexible consumption services for grid balancing. The goals of the project were:

  1. Develop and deploy an automated, cost-optimized system for producing adjustment electricity consumption flexibility services.
  2. Test and validate their solution in real-world environments to ensure its effectiveness.
  3. Verify the viability of their new business model in the market, setting a precedent for industry innovation.
  4. Strengthen their growth and internationalization prospects, positioning themselves as global leaders in energy technology.

The positive impact of the project has been:

  1. Creating a new way of balancing energy grids as the production of renewable energy continues to increase.
  2. Through improved balance reserve offerings, Transmission System Operators (TSOs) in charge of balancing national main grids can maintain grid balance more efficiently and affordably.
  3. Exaum’s solution enables and accelerates the green transition in energy production.