Like Google Maps for Project Developers: Finding Better Locations for Energy Projects

Expert Interview – November 19, 2024

The start-up dvlp.energy wants to make it easier for planners of renewable energy projects to access information that was previously difficult to obtain. On the software-as-a-service platform of the same name, users can use a web-based geographic information system to retrieve data on all relevant selection criteria, especially on grid infrastructure and utilization, for example for PV projects, and to connect with owners of a property and other project developers.

This idea won dvlp.energy an award in the Smart Integrated Energy category at this year’s The smarter E Europe. We spoke to Oliver Schmidt, co-founder of dvlp.energy, about the tool for PV, wind and battery storage projects.

Interview with Oliver Schmidt, co-founder of dvlp.energy

From research to management consulting to founding a start-up: What inspired the creation of dvlp.energy?

During my time as a researcher at the Imperial College London, I felt that I was missing a direct connection to the industry, so I joined the management consultancy Apricum. But I wanted go even further in helping to drive the deployment of renewables. I realized that I wanted to specifically help project developers, because their work is fundamental to any energy project. With this goal in mind, we founded dvlp.energy and are now developing the web-based geographic information system (Web GIS) of the same name to make the development of PV, wind and battery storage projects more efficient.

Why should project developers choose dvlp.energy?

On average, only one out of ten areas a project developer spends time evaluating ultimately becomes a site for a ground-mounted PV system. We want to increase the success rate by helping project developers evaluate areas faster and in more detail. With our Web GIS dvlp.energy, project developers have access to more than 70 data layers, similar to Google Maps. The only difference is that they can see protected areas, land values, electricity highways, grid capacities, municipal data and more. This allows our tool to evaluate the suitability of areas within seconds. On request, it also helps identify the owner of a property.

dvlp.energy is also useful in the advanced project phase. In addition to managing the “project pipeline” through an overview of all projects run by the planner, it can also help create 3D animations of projects or answer specific questions from municipalities more quickly.

How does the tool help plan the construction of battery storage systems?

Battery storage systems require less space than PV systems, which makes it easier to search for suitable areas, but there are still important factors to consider. For example, developers need to check whether the area in question is protected or at risk of flooding. Rather than using various different Web GIS applications for each federal state, battery storage developers can use our tool to validate projects across Germany more quickly and in more detail.

Our tool provides crucial grid information that no other Web GIS currently offers. For example, we can provide developers with data on the location of the nearest transformer station, the grid operator and grid utilization. This enables battery developers to identify potential risks early on and to find more suitable areas.

In the future, dvlp.energy also wants to help project developers secure grid connection. What exactly does that involve?

The grid is crucial for the energy transition, but its expansion is stagnating. When project developers request their project to be connected to their preferred grid connection point, they are often rebuffed or referred to a higher voltage level. A project can quickly become unprofitable due to the high investment costs for grid connection infrastructure. One possible solution would be to share connection points, thereby spreading the investment costs for grid connection over several projects.

That is why we are currently working on a concept that will make it easier to find a suitable grid connection. Our tool allows project developers to see if other developers in the area would be interested in sharing the grid connection. This process only takes place if there is mutual interest and the parties remain anonymous.

How much space do we still need for PV in Germany? And will every large PV system have a large battery storage system?

Germany is far from having enough PV systems. The current goal is to reach 215 gigawatts by 2030. But if our goal is to make Germany a competitive location again with low energy prices, that will not be enough. Demand for electricity continues to grow, driven by electric cars and heat pumps, for example, and solar and wind energy are now the cheapest electricity producers.

To compensate the volatility of these renewables, we need electricity storage systems to provide flexibility. However, battery storage systems do not always need to be located right next to every PV system: With a well-developed grid – the backbone of the energy transition – centralized storage systems at strategic locations are the most efficient solution.

You co-authored the book “Monetizing Energy Storage”. Why is it so difficult to accurately assess the likely costs and value of electricity storage technologies when planning storage projects?

In addition to the challenge of finding the right location for energy storage systems, it is also difficult to develop a profitable business model because storage systems are very versatile and can usually only be operated profitably when combined with multiple different income streams. This requires optimizing the operation of the storage system, which can be done by external optimization service providers or through your own complex calculations for which you need to understand what income streams and grid services are available, and when wholesale and local markets provide the most profit.

Do we need long-duration energy storage at all, and if so, in what scenarios?

Short- and medium-term storage systems that store electricity for up to eight hours are usually sufficient to use self-generated electricity or charge electric cars. They are also sufficient to increase Germany’s renewable electricity generation to up to 80 percent. Long-term storage is needed for extended periods of low solar and wind power production, such as the “dark doldrums” in winter. This will be particularly relevant in the future when heat pumps increasingly electrify heat generation.

At present, this task is performed by natural gas storage caverns, but by 2040 we will need low-emission alternatives. Long-term storage technologies such as compressed-air energy storage or hydrogen will play a crucial role.

How would legislation need to change in Germany to better exploit the potential of energy storage technologies?

Legislation should make it easier to digitalize and access key planning data, such as land-use plans, and make it publicly available. In many other countries this is already possible.

There also needs to be clearer rules on how storage systems are classified and treated by grid operators. In Germany, there is still a construction cost subsidy in place for storage projects – despite the fact that they can significantly relieve the burden on the power grid.

In addition, system services that stabilize our power grid should be procured strictly on the market in the future. This would allow the flexibility of storage systems to be monetized and encourage further expansion without any financial or regulatory support.

You are using an outdated browser

The website cannot be viewed in this browser. Please open the website in an up-to-date browser such as Edge, Chrome, Firefox, or Safari.