Electric Flexibility Companies Are Booming

A concept not widely known among the French, electric flexibility refers to the ability of an electrical system to integrate renewable energies, consumers, and network infrastructures. "Flexibility involves managing the supply and demand of electricity. In other words, it means adjusting electricity consumption downwards during periods of high demand and upwards to maintain this balance in real time, especially during consumption peaks."

Traditionally, this market has been dominated by established energy companies, making it highly competitive. However, recently, French startups have begun to emerge. One such startup is Orus Energy, a company that has developed an energy management solution for commercial and residential buildings. In May, the company completed a funding round of 2.2 million euros to advance its energy solution with the increasing electrification of the world and the overall growth of renewable energies, driving demand for flexibility to rise in the coming years.

In detail, electric flexibility manifests in energy management and storage solutions. "The innovation lies in connecting hardware (such as a storage battery) and software (the management of these devices) for a more efficient solution," explains co-founder Fanny Saussereau.

‍

"It's the Right Time"

The software interfaces with building management systems (BMS), connected devices already present in the building, and other energy data sources. "It's a process largely without comfort loss for occupants," adds her associate, Alexandra Girard. Clients can be offered battery solutions, facilitated by the Bacs decree, a European regulation requiring the implementation of BMS by 2025 and 2027 for non-residential tertiary buildings.

For building managers, beyond the energy savings achieved, another selling point is compliance with new urban planning regulations. "They are compensated by the grid operator when they adjust their consumption," summarizes Orus Energy in its pitch.

Similar startups have been established in France and Europe in recent years. In France, companies like Voltalis, Actility, Qarnot Computing, NRJ Solar, and Smart Grid Energy, specializing in diffuse load shedding, have emerged.

The growth of this sector has been spurred by the current energy crisis, regulations on energy management, and installation aids. This presents an opportunity for these companies to position themselves in the market and seize new tenders.

‍

Load Shedding Operators

Some startups, like Tiko Energy, which mainly targets the tertiary sector, are "load shedding operators" for RTE, the electricity transmission network. They can request businesses to reduce energy consumption during peak times, network failures, and thus, monetize this service.

"This allows us to offer a service to grid operators and clients," says Guillaume Ounat, co-founder of Tiko Energy.

Jeff Knoepfli, responsible for France and Western Europe at Tiko Energy, notes that "The first challenge for young startups is to showcase their innovations while complying with current regulations."

In this sense, Orus Energy and other emerging startups must continue to innovate to meet their clients' specific needs and stand out from the competition.