Creating a scalable and flexible platform to support the growth of a German municipal utility and service provider's energy business
The European energy market has changed rapidly over the past decade: market harmonisation, the rise in renewables supply, asset flexibility, increased consumer awareness and participation, and a significant increase in the focus on data analytics. To meet future needs, an efficient, scalable and flexible IT architecture is a prerequisite for energy traders and optimisers.
enercity, a leading German municipal utility and service provider, saw the need and associated benefits of digitising their trading and adjacent systems and processes, and embarked on a transformation journey with Baringa’s generation & trading team.
The investment needed to deliver twofold: the existing trading business needed to become more efficient, and a technical foundation had to be laid for the future. Enercity’s vision of being ‘the driving force for the digital energy world of tomorrow’ is underpinned by a business that is both end-customer and renewable-focussed, and supported by tools enabling rapid decision making.
Baringa benchmarked processes and systems, and carried out a healthcheck against future needs of enercity’s energy trading business. Leveraging Baringa’s Trading Capability Model, independent insight into leading technology solutions, and proven delivery experience, we created an architectural vision and a programme roadmap to successfully deliver it.
Baringa was then selected to support enercity with the scoping and selection phase to deliver two key objectives: shortlist and select an ETRM solution as part of the wider architecture, and identify and define changes to the operating model to ensure end-to-end efficiency improvements.
The selection was completed through an innovative, use-case driven approach that exposed the boundaries of product capability and delivery risk in the areas that mattered most to enercity, ultimately resulting in a chosen solution for which the delivery risks and associated benefits were clear.
In parallel, Baringa defined the to-be operating model that would ensure business efficiency and provide clarity around the detailed scope for the ETRM solution vs wider business tools – a critical first step to ensure the subsequent delivery phase is successful.
Outcomes and Impact
enercity’s underlying trading business model has been redefined, and the business team is highly engaged and enthused to support a rapid delivery of the new trading platform. Baringa continue to support enercity; we are working on the detailed design and delivery of the end-to-end solution as a single, collaborative team, and support the realisation of enercity’s commercial ambition for the 2020s.
Ralf Henze, Head of Analysis and Optimisation at enercity, and project lead:
"The replacement of an ETRM system is a one in 10 years opportunity. Baringa has helped us to clearly understand our current and future IT architecture challenges, and helped us to select a new lightweight ETRM system in a structured and effective way. On the business side, we developed a new trading business model empowering us to deliver on the benefits from this investment. I’m highly impressed by Baringa’s ETRM and trading business experience and their pragmatic and collaborative working style."