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Six solutions for Commercial and Industrial clients

Six solutions for Commercial and Industrial clients

Enel X presents business models catering to various necessities of its C&I clients. Turnkey solutions to lower energy costs and foster energy conservation

Published on DECEMBER 04, 2019

Is it possible to engineer bespoke storage solutions?

Every factory, business venture and housing system - the so-called Commercial & Industrial (C&I) clients - has very specific goals, necessities and regulations to follow. In order to design, engineer and put into operation a storage system, many hardware (batteries) and software (Energy Management System - EMS) aspects need to be included in a tailor-made solution based on specific needs of those who resort to storage systems as a way to cut energy costs while they aim to lower consumption, integrate renewable facilities with grid network flexibility, as well as fostering more resilience and improve the system’s performance. It is from this awareness that Enel X delivers business models for C&I clients, designed to respond in an adequate and timely fashion to specific necessities arising from the so-called Behind the Meter (BtM)1 context.Every factory, business venture and housing system - the so-called Commercial & Industrial (C&I) clients - has very specific goals, necessities and regulations to follow. In order to design, engineer and put into operation a storage system, many hardware (batteries) and software (Energy Management System - EMS) aspects need to be included in a tailor-made solution based on specific needs of those who resort to storage systems as a way to cut energy costs while they aim to lower consumption, integrate renewable facilities with grid network flexibility, as well as fostering more resilience and improve the system’s performance. It is from this awareness that Enel X delivers business models for C&I clients, designed to respond in an adequate and timely fashion to specific necessities arising from the so-called Behind the Meter (BtM)1 context.

Six business models for C&I clients

Enel X offers BtM storage solutions for C&I clients through the following business models:
In the Spot Sale business model, Enel X provides clients with a turnkey storage solution (or PV+Storage), complete with a DER.OS control system that guarantees optimal management. Ownership is handed over to the client who benefits from 100% of savings in the utility bill and revenue generated by the battery, in the face of a down payment for the purchase and an annual tariff that covers O&M services provided by Enel X. This business model guarantees the highest returns for clients, in the face of a higher risk connected to the initial capital investment.
In the Comprehensive Benefit Share business model, Enel X will invest its own capital by installing a storage system featuring DER.OS at the client’s site. Savings on the utility bills and revenues generated by the battery are to be shared between Enel X and the client, based on a proportion that varies depending on the project, allowing Enel X to recoup its initial investment. This model, being very similar to an ESCO type, provides clients with the advantage of benefiting from savings and revenues with no capital investment and no tariffs for O&M services. With no initial investment, the client’s risk profile is considerably lower than the Spot Sale model with returns that are consequently lower. This model entails another advantage since Enel X has the greatest incentive to guarantee the system performs at its best to secure the maximum return on its investment.
In the Lease business model, Enel X will invest its own capital by installing a storage system featuring DER.OS at the client’s site. The client is to pay an annual/monthly leasing fee to use the system, as well as O&M services, benefiting from 100% of the savings and revenues generated by the battery.
In the Site Lease business model, Enel X will invest its own capital by installing a storage system featuring DER.OS at the client’s site. Enel X is to pay the client a monthly/annual fee to use the system, benefiting from 100% of the savings and revenues generated by the battery
In the All-In Power Purchase Agreement (PPA) business model, Enel X will invest its own capital by installing a PV + storage system featuring DER.OS at the client’s site. The client uses the energy generated by the PV system, with its power output rendered adjustable by the storage system that encourages self-consumption, in the face of the payment of a flat rate in €/kWh - lower than the cost of energy sourced from the power grid. Consequently, the client requires no upfront investment and with a very low-risk profile, it saves on its own energy supply costs.
The Hybrid Power Purchase Agreement (HPPA) is a combination of PPA and the abovementioned Comprehensive Benefit Share. The client pays a rate in €/kWh on energy generated by the PV system, while revenues generated by the battery (e.g. for Demand Response services) are shared between Enel X and the client, based on a proportion which varies depending on the project. This scheme allows to lower rates on generated energy, compared to a PPA model, while the benefit share is an incentive for Enel X to maximize the economic performance of the system.

 

 

1. Behind the Meter (BtM) refers to anything that happens on-site, on the energy user’s side of the meter. Conversely, anything that happens on the grid side is deemed to be in Front of the Meter (FtM*).

2. PV plant: photovoltaic power plant

3. DER.OSTM control system: The Distributed Energy Resources Optimisation System, is the Enel X end-to-end software platform that, based on the analysis of real-time and historical data, optimizes the operations of Distributed Energy Resources to maximize the economic value extracted from them. The platform uses innovative and scalable cloud-based analytics to meet the needs of any segment in the energy market. To know more about DER.OSTM visit the dedicated online section.