What is a flexible energy system, and how does Kaluza’s technology help energy retail companies to navigate it?
A flexible energy system is much more dynamic than the energy system used to be. First, we are seeing a lot of new devices coming online. Customers might have EVs, heat pumps, or new batteries. Then, there are new forms of generation and storage and people are using energy at different times and in different ways. And third, we are seeing more price volatility. Those three elements combined mean that managing the system is starting to look very different from what it used to be.
Kaluza is an intelligent software platform specifically designed to help energy retail suppliers adapt to this landscape. They may be operating across various software platforms, managing a vastly growing number of data points required for a much more distributed system. Our platform enables them to centralize and efficiently manage all that data.
Can you give an example of an application enabled by Kaluza’s software, and what it does for clients and consumers?
OVO is particularly relevant to mention. We were originally incubated within OVO and, though we are now an independent company, they remain one of our key customers. We migrated their entire customer base onto our platform and collaborated on a ‘Charge Anytime’ offering, which allows customers to charge their EVs at cheaper, greener rates whenever they plug in, without needing to worry about when renewables are most abundant.
Customers have access to an app where they can either set and forget - saying, "Charge my car by this time at the cheapest or most carbon-efficient moment" - or manually adjust settings. This results in customer, carbon and company savings – as well as grid stability – and enables companies like OVO to design new tariff structures.
What other collaborations illustrate how software can empower consumers in a flexible energy system?
With Volvo, we have an integrated smart charging app that allows Volvo EV users to manage when and how their cars charge. Another important pilot is with PG&E—an hourly flex pricing collaboration. Building on the previous REDWDS collaboration, it specifically enables communities, with half from disadvantaged or low-income backgrounds, to access better savings. The new pilot offers hourly flex pricing, allowing us to vary pricing every hour and help customers benefit from real-time market volatility. What is clear is that the platform empowers both the end consumer and our customers, the energy retailers, as both have a critical role to play in the energy transition.
How have you seen clients’ and end-consumers’ concerns about the green energy transition evolve during your tenure as Head of Sustainability at Kaluza?
Over the last 10 years, the new technologies we need in the energy transition have been at the forefront of the conversation. We have seen a surge in EVs: by 2030, a significant part of the cars on the road will be electric. Similarly, the conversation around heat pumps has advanced. In the UK and the EU, we expect millions of heat pumps to be installed in households, which really changes things.
For the consumer, a key current debate is how they can be empowered to play the right role in the energy transition. A big part of that is making sure they have the tools and information to decide how and when they want energy to be consumed, or to put trust back in energy companies to manage it. For major energy retailers – who all have decarbonization strategies to hit the Paris Agreement targets – concerns are about barriers and risks to achieving those goals. These include grid stability, customer affordability, and ensuring an equitable transition.
In the UK, there is concern that government subsidies for heat pumps are inaccessible and insufficient, putting green home energy systems out of reach for consumers. What can energy companies do?
We talk a lot about how information and data can encourage investment and government policy to ensure that the right support reaches the right places. It is important to understand the current state of data management.
There are essentially four things energy companies need to do to allow customers to benefit from subsidies and cost savings. One is understanding how devices like EVs and heat pumps integrate; however, many companies do not even know which customers have them.. Second is ensuring that energy-use information goes back into the company, and that bills are real-time and accurate. Third is optimizing for carbon and managing energy trading. Fourth is strengthening customer care, ensuring customers have the information and tools to make the right decisions. It is complex, and currently those tools do not exist, making transparency difficult. Without a platform like ours, energy companies cannot manage that well.
In which markets is there most interest for Kaluza’s technology?
We are seeing interest in many major markets. We were incubated in the UK, but last year, we got a big investment from AGL - one of the biggest energy retail providers and generators in Australia. We are now rapidly rolling our technology out to their customers. We also have a joint venture with Mitsubishi in Japan and partnership with PG&E in the United States. In Europe, similar conversations are happening.
Grid stability is one of the top issues for electrifying the energy system worldwide, with governments actively addressing it. Our software platform helps reduce the risk of outages, increases the ability to use renewable resources, and reduces the need for heavy infrastructure investments.
As the global energy transition accelerates, Kaluza remains committed to empowering energy companies with the tools needed to ensure stability, reduce carbon emissions, and make sustainable energy accessible to everyone.
