19SafQB

184 IoT Applications — Value Creation for Industry
Connected Mobility
Connected City
Enabling business success
in a connected world
Connected Energy
Connected Industry
Connected Life
Connected Enterprise
Fig. 3.16 Applications for the Internet of Things & Services.
While large power plants operate based on accurate and agile schedules,
decentralized power generation plants are often operated along subsidy policies
and not according to the forces of the electricity market. This leads to an
uncontrollable volatility in production and highly fluctuating market prices. It
also forces transmission and distribution network operators to maintain high
balance energy capacities in order to ensure grid stability.
Aiming for a better integration of distributed power generation systems,
regulations are changing, and with it the demand for intelligent energy management
systems is increasing. Their purpose is to provide for a transparent
integration and control of distributed systems to improve the efficiency of
sub-systems (e.g., a microgrid) in the smart grid as well as to give both new
and established market players the opportunity to profit from new market
potentials.
The virtual power plant is an example of how the operation of such a
sub-system can already be profitable based on Internet of Things & Services
technology. The service is supposed to help implement new business models,
not only for traditional market players such as local energy producers,
traders, aggregators and operators, but also for large companies and industrial
parks. They could use the service to make profit, e.g., by offering spare
capacities of unused facilities.