Feb. 20, 2025 – The energy transition is increasing the need for flexibility in the energy supply market: energy generated by wind power and photovoltaics fluctuates over time and can only be predicted at short notice. Consumers are becoming increasingly aware of their electricity consumption, and sustainable, decentralised solutions such as battery storage, controllable power generation systems and charging points for electric vehicles are also growing in popularity.
Dynamic tariffs with flexible pricing that changes according to supply and demand create appropriate incentives and enable consumers to adjust their energy consumption to current electricity exchange prices, for example, in order to reduce costs. Dynamic tariffs thus promote the use of renewable energies, as a high supply of renewable electricity generation is typically accompanied by low electricity prices.
Since the beginning of this year, all electricity suppliers have been required to offer variable and dynamic electricity contracts. Particularly challenging at the start of dynamic electricity contracts are the regulatory requirements, the fulfilment of technical prerequisites and the higher consulting costs for consumers. For example, having an iMSys is advantageous for using a dynamic tariff. This is because it is the only way to bill actual consumption according to load profile (based on 15-minute values).
Concrete implementation in the powercloud platform
Once consumers have met the technical requirements, energy suppliers using the powercloud platform can offer dynamic tariffs on the market. Specifically, price time series and load profiles are combined with each other. To do this, the energy supplier first defines billing rules and templates in powercloud using a simple modular system, without any programming effort. The price time series and load profile are transmitted to the powercloud platform via REST API or MSCONS. Once the billing date is reached, the billing process takes place based on the defined price time series and the corresponding load profile, generating the relevant billing event. Our customers can then use this to provide consumers with their bills. powercloud thus offers a smart process design for the energy supply market of the future with dynamic pricing.
“Several of our customers have been using dynamic tariffs for months. Consumer demand is growing steadily. It is only a matter of time before dynamic tariffs become mainstream,” says Jonas Nahm, Director of Client Services & Support Delivery at powercloud.
Due to the greater complexity and uncertainty associated with this topic, energy suppliers need to provide more consulting services to end customers for these tariffs than for traditional supply tariffs. The technical requirements are also not yet in place across the board. As the rollout of smart meters continues to gain momentum – and the installation of an iMSys will be mandatory for households consuming at least 6,000 kWh per year from 2025 – and consumers are becoming increasingly aware of their own energy consumption , it can be assumed that dynamic tariffs are the future of pricing in the energy supply market and that demand for them will increase in the near future. powercloud considers itself and its customers to be very well positioned for this.
