Project BungEES delivers model for intelligence energy services in Europe

by Mahendra Singh, Marian Klobasa and Anne Kesselring /

In the EU project BungEES, a project consortium developed service packages which help consumers to save energy and money by combining energy efficiency and load management. Fraunhofer ISI assisted in developing the business model through sound scientific analyses.

Save energy without compromising comfort and, in doing so, reduce emissions and costs: The project BungEES examined how that can be achieved. For three years project partners from science and business developed a model for intelligent services which combines traditional energy efficiency measures in buildings together with load management, load infrastructure for electric vehicles, battery storage and decentralized production of renewable energies. Energy service providers can use the resulting service packages to put together different options for end consumers. A project partner developed these packages and intends to launch them soon.

In about 100 residential buildings in France, Spain, Portugal and the Czech Republic (apartment blocks and single and multifamily homes) energy management systems were installed for this project. With the aid of intelligent automation, the residents were able to reduce their energy consumption for heating and cooling by 15 to 30 percent, which led to lower electricity bills and considerable C0₂ savings. The key factor was the shift of energy consumption away from peak times, which helped prevent the local grids from overloading. As a result, consumers became active partners in grid management, helping to balance the fluctuating demand and reducing the need for costly infrastructure upgrades.

The decisive factors here are intelligent Internet of Things (IoT) appliances and automation tools, which change common household appliances into interactive, flexible energy plants. Mainly boilers, heat pumps, cooling systems and solar power systems with energy management systems were connected. Although this requires the installation of special appliances, the European market for energy flexibility is growing fast, leading to widespread use of networked household and IoT appliances. 

© Fraunhofer ISI
“Flexibility-as-a-service” for households.

Flexibility Service business model 

At Fraunhofer ISI, we conducted demand studies so that we, as a research partner, could support and advise companies when developing services. The industry partners then tested the jointly developed models as operational services at pilot sites.

We placed particular emphasis on servitization business models i.e. the combination of material goods and services. The most relevant form is “flexibility-as-a-service”, i.e. the enabling of a flexible demand (see illustration).

For example, the exchange of gas boilers for efficient heat pumps enabling progressive load management by changing the heating demand into a flexible electric load. Time shifting, power modulation and price-based control allow the heat pump's operation to be adapted to grid conditions and renewable energy generation, reducing peak demand while ensuring comfort for consumers.

Why have service providers and users decided on such a model? The main reasons are interest in sustainability, the digitalization of the energy sector and new payment methods. The advantages are high transparency and strong commitment from the end consumers, reduced costs and the fast payback period of investments, requiring only low levels of new infrastructure investment.

The challenges include a significant need for regulation, high initial installation costs and a market supply that remains underdeveloped, but here the results from BungEES can help: The model which we have helped to develop is scalable and ready for investments. Cities, utilities and energy service companies can implement it throughout the EU, adapting it to the local needs.

Through the new business models and financing mechanisms developed in the project, for example, premiums for energy savings and flexible consumption, the project can also contribute to developing private investments for energy-efficient renovations. This brings the project into line with the EU's strategy of combining public funds and private capital to achieve climate targets.

Cities and utility companies can already view the implementation guidelines on the project website. The collected service packages will be released soon; however, the exact date has not yet been determined.

Further information and studies

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