Residential solar and battery marketplace Otovo has announced a partnership with UK virtual power plant (VPP) Levelise to launch an AI-powered ‘Hub’.
The Levelise Hub, in combination with a solar PV system from Norway’s Otovo, enables households to actively participate in energy markets to which they normally do not have access, by trading their electricity 24/7 and storing it across multiple homes to aggregate using Levelise’s VPP.
The partnership, which is said to be the first of its kind in the UK, offers customers access to the Levelise Hub for £599 when purchasing a solar and battery installation. AI-powered algorithms ensure that batteries are charged during periods of low costs and discharged when prices peak; this means more energy efficiency and lower costs for consumers.
From 2025, Otovo customers will be able to sell their electricity on wholesale markets via Levelise. The VPP trades across twelve revenue streams, including National Grid ESO’s Balancing Mechanism, Demand Flexibility Service and Frequency Response markets.
According to the companies, all household electricity use in Britain will be charged on a half-hourly basis by 2026, meaning those with smart technologies can make significant financial gains while stabilizing the electricity grid.
A ESO report March 2024 showed that the average annual system inertia has decreased by 40% over the past ten years. Lower inertia means that the system frequency is less resistant to changes; events such as a sudden loss of generation or demand have more effect.
As the report states, scenarios with more asynchronous and variable generation sources will likely require more reserve and response. This means that consumers bear a degree of responsibility to provide demand-side flexibility, with VPPs used to balance fluctuations in supply and demand.
Levelise product director Steve Day said: “By integrating advanced energy management technology with high-performance solar installations, the partnership aims to set new standards in home energy solutions, driving environmental sustainability and economic benefits for homeowners.”
Otovo UK Managing Director Jina Kwon added: “It is vital that we move away from a fragmented market and instead offer consumers a comprehensive smart home offering.
“By offering consumers access to trading markets and the ability to use their battery to take advantage of peak electricity prices to sell and cheap electricity prices to charge through Levelise, we can offer them greater savings and income as they contribute to decarbonisation at the same time creating and stabilizing our network.”
Otovo recently launched a new partnership with Elli, a subsidiary of Volkswagen Group, combining its solar energy offering with e-mobility. By integrating a wallbox and a PV system, the partnership claims it can reduce the total cost of ownership for electric vehicles by up to 40%.
