Residential and small commercial electricity consumers will provide most of the flexibility needed in the power system to achieve the energy transition at lower cost. This flexibility will allow the electricity grid to take on more renewables and need less grid reinforcements. Consumers are happy to participate (>75% opt-in rate) via an aggregator and be rewarded with energy savings reducing their electricity. Because it reduces the overall costs of running the energy system, it means that all consumers benefit from lower energy prices. The business case is now proven as more and more countries worldwide ensure demand side response can participate in wholesale markets as an alternative to generation and the EU has provided support through its recent Clean Energy Package. Pierre Bivas from Voltalis will share his experience of operating flexibility from more than 100,000 households in France, and now installing another 150,000, backed by the European Investment Bank, while also developing in other countries with local partners.

1. Demand side response
today for tomorrow
Households are happy to join together
and provide power flexibility
for climate action
June 11th, 2020
1

2. Immense Energy Challenges for the Years to Come
New energy
needs
(EV…)
Stand-alone IoT
with risk of
synchronous
patterns
Growth of
intermittent
renewables
Traditional solution: increase SUPPLY
Oversized thermal plants & grids
Pollution and
climate change
Our approach:
Manage Demand in Real Time as Accurately as Generation
Internet of Energy
2

3. X-IoE™
Aggregation
Platform
Optimization for both the end-consumers and the
electricity grid, at any scale (time/geography)
StorageHeaters
Water
Boilers Electric Cars
Aircon
s
Distributed
Loads
Distributed Generation
Distributed
Storage
Utilities
…
Dispatch
Services &
Savings
End-Users
Competitive & Customer-centric retail offer
Competitive solution to manage the electric system
3
HVACs
Rooftops

4. Voltalis: Flexibility Aggregation for (Sm)all Consumers
#1 operator of Internet of Energy (IoE), with a proprietary technology for aggregation
and optimization of widespread flows of energy, both for end-users and for electric
systems
• The only platform for residential demand control (DC) officially certified by a
TSO in Europe (since 2008) and now active daily in wholesale energy markets
• Protected by 12 international patents
• 11 years of R&D – 9 years of daily operation
ü 100,000+ boxes in homes and C&I sites (offices, supermarkets…)
ü Close to 1 million connected appliances
ü 1 billion data collected / processed in real time everyday
ü 4+ billion individual shedding orders since beginning
ü 200+ billion entries in the database
ü Recent support from EIB to install another 150,000 consumers
ü Now in France + several countries in the EU countries and beyond
4
The Only Residential Demand Control Operator at such Scale

5. Solution seen from consumers
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6. On Site Connection to Various Loads
» Open to many end-devices
BLUEPOD
(gateway & “mini PC”)
SMARTSWITCH
(4 submeters & relays)
C&I INSTALLATIONS
HVACs Rooftops
Back-up
generators
Chillers
RESIDENTIAL APPLIANCES
Electric heaters Boilers ACs Thermostats
Home Energy
Management
Systems
Building
Management
Systems
Local Hardware… … open to many types of end-devices
EV Solar Roofs Storage
…
PLC, Z-Wave, Zigbee,
Wifi, Modbus…
Remote upgrades for new
services
Sensors
6
NEW APPLIANCES

7. Alerts Virtual Smart
Thermostat
Home Power
Balancer
Heat up only
if at home
Price Plans
TOU
Monitoring – Comparison - Advice
A full Home Energy Management System for
Smart Homes / Smart Buildings
7

8. For Free
Eco Friendly
- Significant CO2 emission
reduction thanks to
avoided generation
- Zero waste, Zero
emission, Zero risk
Solidarity
- Benefits for the grid
- Reduced risk of
blackouts
Friendly
Interface
Same Comfort
- Adaptive and precise
cycling strategy
- 5 year experience with
excellent satisfaction
rates
For the consumers: Savings & Services, for FREE
» Cost savings (with same comfort)
Up to 15%
Savings
… and more services
8

9. For C&I: a Virtual BMS
∥Friendly web interface with access right management (for multi-site groups)
Examples of Features
ü Data detailed per appliance
ü Real time consumption
ü Aggregation of a given areas (portfolio
management)
ü Comparisons between sites/groups of sites
ü Comparisons in time
ü Alerts (email, SMS…)
ü Malfunction auto-detection
ü Scheduling / Clocks
ü …
» Web interface for technical teams
9

10. Solution seen at grid level
1011-Jun.-2020 Users TCP 9

11. Macro-Aggregation of Micro-Flexibilities
» Covers the needs of the grid and markets on any time scale
11
Individual sites
Voltalis X-
IoE™
Platform
MWh
Hz
…X millions of sites
Aggregated result on millions of appliances
Examples
MW HOURS
MW
HOURS
Dispatchable Alleviates grid const.Zero emissionAvailable Precise
MW
Within minutes
Within seconds

12. Solution: Internet of Energy Technology
• For participating consumers
• Easy, plug and play
• Free of charge
• Energy savings and services
• For the system
• Aggregation of millions of appliances under real time control
• Reliable + accurate
• For all consumers : Avoid costs + better integrate renewables
12
SMARTBOX
Real time
communication +
Measure & Act
PLATFORM ALGORITHMS
• Responsive
• Global + Local
• Machine
Learning
11-Jun.-2020 Users TCP 9

13. ∥ Avoids some grid reinforcements that
only covers a few hours/year
“Non-wire investment” for DSOs
» Aggregation at any Scale: Country, Region, City, Block of Houses…
Country
∥ Aggregation can be managed with
geographical constraints
13

14. Complementary to (Smart)Meters
More flexibility than via price signals
Ø Voltalis X-IoETM
is operated « beyond the meter », and doesn’t compete with DSO (smart) meters, but provides complementary
services, both for end-users and grid operators
SMART METERS
Metering Overall metering, only
Sub-metering of each
appliance connected (each
heater, heat pump, water
boiler, aircon…)
Communication Differed, once a day
Real-time
Frequent (every few
minutes/seconds)
Action on home
appliances
Not directly (but can
send price signals to
other devices - such as
Voltalis box - that will
act on appliances)
Real-time modification of
the consumption (or
settings) of each appliance
Aggregation of
micro-shedding
No
Yes, in real time, with
specific algorithms
Example of Voltalis practical applications:
Reshaping of water boilers load curve
22:30
22:50
23:10
23:30
23:50
0:10
0:30
0:50
1:10
1:30
1:50
2:10
2:30
2:50
3:10
3:30
3:50
4:10
4:30
4:50
5:10
5:30
5:50
water boilers : load carving
21/3
22/3
Voltalis operation on 3,000 water boilers
Based on Machine Learning, water boiler consumption
can be spread within low-tariff hours in a more efficient
way than through Price Signals
Reference with water boilers based on price signal:
all start at the same time, creating an artificial peak
Example of a dynamic reshaping managed by
Voltalis that divides the peak by 2
1
1
2
2
The load curve can also be managed according to external
constraints, such as instant renewable production,
national balancing needs, etc.
14

15. 15
X-IoETM
Aggregation Algorithm
ü Real time
ü 2-way
communication
ü Secured
ü Automated
& & &
Services to the grid
Substitute to
thermal plant
Renewable
firming
Peak demand
management
Congestion
management
Frequency
regulation
Reserves
(security in case of
system collapse)
Voltalis’ X-IoE Internet of Energy: Integrated and Modular
A new approach to demand side participation and savings
Services to consumers
Photovoltaic self-
consumption
EV / Storage
management
Home energy
management and apps
Alerts, comparison
and advice
Remote control
Virtual thermostatDynamic pricing
Savings
EV Photovoltaic Storage SensorsElectric heaters ACs ThermostatsBoilers
Smartbox

16. Worldwide Potential
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17. International Development
17
∥Partnerships with various
kind of actors
• TSO/DSO
• Suppliers
• Manufacturers
• Landlords / real estate Cies
• Commercial sites
• Cities (communication to
population & public buildings)

18. A worldwide potential – A worldwide need
Selected examples
Selected examples
USA
93% of HH
with aircon
14 GW of DR
Nordics
3.5 million
households
with elec. heating
Canada
2 million HH
with elec. heating
8 million HH
with aircon
France
7 million
households
with elec. heating
China
Need for +1,000 GW
of capacity
in the next 25 years
Japan
Aircon = 50% of
national peak of
residential sector
Saudi Arabia
5m HH with aircon,
Aircon = 75% of the peak
of the country
+60GW of capacity needed
Australia
4 million
households
with aircon
Indonesia
+10m aircon units
sold per year
Need for +18GW
of new capacity by 2025
Singapore
70% of households
and most of
commercial sites
have aircon
UK
2 million
households
with elec. heating
South Korea
80% of HH have aircon
4GW of industrial DR
18

19. E.g. Potential in Greater Tokyo Area
∥Air conditioning = half of residential consumption during peak hours
A potential of c. 9 GW for Demand Control in Households
19

20. Duck Curve due to PV in California
∥As seen by CAISO in 2012 for 2020: huge swings, and more to come
20

21. The international common clue to DR
participation in the market: net benefits
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22. Selling DR on Energy Markets to Avoid High Prices and
Save for All
Wholesale price
(P)
Cons.
(Q)
Reduction of wholesale prices
= financial benefit for retailers
Reduction of consumption
= “cost” for retailers
Q x dP
P x dQ
22

23. Example
23
Demand Reduction benefits all retailers
by avoiding high market prices
Request from retailers 60 000 MWh
Market price without DR 70 €/MWh
DR offered in the market 100 MWh
Other bids = generation 59 900 MWh
Leading to a market price reduced to 68 €/MWh
Windfall profit for retailers (70 – 68) * 60. 000 = 120 k€
Cost for retailers:
Volume of DR bought without selling to consumers 100 MWh
Price paid for DR = market price 68 €/MWh
Cost for retailers 6.8 k€
Benefit / cost ratio 120 / 6.8 = x 18
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24. DR in European markets:
benefits >> 10 x costs
24
Benefits from market-based DR: reduce sourcing costs for retailers
450 GWh/mkt = 1.6 G€/y
benefits for retailers
Source: The Regulatory Assistance Project
11-Jun.-2020 Users TCP 9

25. Net benefits and worldwide implementation
∥USA
Ø FERC Order 745 (March 15th, 2011), as of 2012
Ø DR to participate in all organised electricity wholesale markets…
Ø … as soon as market price above a threshold, ensuring net benefits > 0
Ø Threshold price monthly published since 2012 by PJM and others
Ø Disliked by generators (EPSA) but backed by Supreme Court (Jan. 25th, 2016)
∥Singapore
Ø EMA’s final determination Implementing Demand Response Programme in the National Electricity
Market of Singapore, 28 Oct 2013, later updated (2016, etc.)
Ø + IL: interruptible load (ancillary services)
Ø Initially limited to (large) « contestable consumers »
Ø Principle
• DR is paid 1/3 of overall market benefits
• Hence market parties capture 2/3 = net benefits
∥EU
Ø Clean energy package / Electricity Market Design / Directive (EU) 2019 / 944
Ø DR accepted in all electricity markets: wholesale markets and ancillary services to TSOs/DSOs
Ø Net benefit rule:
DR to contribute to a ‘compensation to suppliers’ (if any) only if overall benefits do not exceed cost
Þ Always a net benefit (or zero) for all suppliers,
Þ To be eventually transferred to all consumers
Þ Net benefits shared among all suppliers, hence all consumers
25

26. Generators TSOs DSOs Retailers
Policy Makers
Participating
Consumers
ü Manage
intermittency of
renewables
ü Avoid costs, close
inefficient power
plants and better use
other assets
Benefits for all Consumers and all Stakeholders
ü Reliable, cheap and
fast means to balance
grid and ensure
reserves
ü Demand control is
available when
demand is highest
ü Overcome local
congestions (“non-
wire investment”)
ü Manage grid in real
time using Demand
control and
collected data
ü Reduce sourcing
costs and avoid risks
of wholesale price
volatility
ü Innovative services
and energy
efficiency
ü Energy savings (up to
-15% on bill)
ü Innovative services
and energy efficiency
ü Smart homes
ü Energy transition: save
energy, avoid CO2 emissions
and use of fossil fuels,
provide cheap and reliable
flexibility to ease use of
renewables
ü Competition: Enhance
consumers’ market power,
innovative services
ü Social: Reduce costs for all
and finance smart homes for
all volunteers
All Consumers
ü Cheaper electricity
ü Enhanced reliability
ü Greener power
system, more
climate-friendly
26

27. 27
Thank you!
pierre.bivas@voltalis.com
11-Jun.-2020 Users TCP 9