BALANCING INNOVATION AND INCREASED EFFICIENCY IN ENERGY EXPANSION AT ARCUS POWER
PROJECT
PARTNER
BALANCING INNOVATION AND INCREASED EFFICIENCY
IN ENERGY EXPANSION AT ARCUS POWER
Daniel Erhardt, CEO of Arcus Power, on how the company is transforming customers' cost efficiency capabilities and deploying sustainable practices in the energy sector.
SPECIALISING IN MACHINE LEARNING AND AI-DRIVEN ENERGY MARKET INTELLIGENCE
SOFTWARE, ARCUS POWER IS TRANSFORMING THE WAY COMPANIES OPERATE IN THE ENERGY SECTOR – FROM SMALL BUSINESSES TO LARGE CORPORATIONS.
y enhancing customer decision-making with a wide range of advanced analytics and forecasting tools, the company’s solutions are not only helping improve costeffectiveness, but also championing sustainable initiatives.
Joining us from Arcus Power is CEO Daniel Erhardt, to discuss the work Arcus Power is doing to help consumers be more cost- and energyefficient in the wake of overwhelming energy demand. To begin, Daniel explores the balance between new technological innovations and what he refers to as the energy expansion.
“Any technological advancements we’re making as a society are fuelled by energy consumption,” says Daniel. “So the dichotomy here is balancing the creation of new technology and innovations with the need to ensure these solutions can be scaled effectively in the energy expansion.
“I like to break this into two parts: the energy system and the technology, with capacity residing at the intersection of both components. What this really means is that when you think about how you build technology to support the energy expansion, you need to create more capacity in the energy systems.
“What Arcus is doing is creating capacity that equates to increased margins for our consumers – thanks to avoided energy costs, growth for economies as a whole and greater contributions sustainability targets.
“To get there, we’re delivering tools and insights to customers who are looking for decision-making processes that can be used rapidly and support them dynamically. By helping customers avoid costs, we’re also able to help in benefitting the energy system as a whole.”
Arcus Power’s propensity towards innovation is aptly demonstrated
by the company’s work with the Alberta Electric System Operator (AESO) power grid – deploying an inventive solution to avoid potential catastrophe.
“Back in January 2024, there was a cold snap in Alberta which led to the electric grid going largely offline,” says Daniel. “The operator was about to have to start instituting rolling blackouts, which is very dangerous in a cold snap.
“To avoid it, they sent out a notification through the Emergency Alert System, telling everyone in Alberta to shut off their large electricals to prevent rolling blackouts. Almost immediately, we saw the demand drop by several hundred megawatts in the system, avoiding the need for blackouts.
“What was particularly rewarding about this was that we were able to see on social media that the response
Winners of the Energy Tech Night 2024 by Digital Wildcatters in Calgary
was largely positive. The majority of people saw this as a unifying thing to support our province and our energy system, and that they were happy to contribute to the cause. These actions by consumers at that moment probably avoided an additional cost of a billion dollars, as well as preventing an investment into a new generator that would end up sitting idle.”
For Daniel, this is just one example of the many ways an effective energy management system can transform a business.
“Arcus Power stands out by looking at the signs of our energy consumption and considering how we can be more efficient,” says Daniel. “There are a lot of companies – whether they’re in the steel, cement or oil and gas industries – who aren’t looking at their energy management factors. Their priority is getting their product on the market, but there has been a massive demand shock to the energy system, which means that the generation capacity simply isn’t there.
“The way we have to solve this is through efficiency. We like to look at the other side of the equation and see how we can run a tighter ship for our consumers. After all, energy is the key element for driving economic growth in any society.”
According to Daniel, the elegant simplicity at the core of Arcus Power is how the company helps customers make small but impactful
“ARCUS POWER STANDS OUT OF OUR ENERGY CONSUMPTION WE CAN BE MORE
Daniel Erhardt,
CEO
changes that can lead to significant operational improvements.
“By delivering insights around demand response or peak avoidance to Arcus Power customers, we’re creating new efficiencies in these systems,” says
OUT BY LOOKING AT THE SIGNS CONSUMPTION AND CONSIDERING HOW MORE EFFICIENT”
CEO of Arcus Power
Daniel. “We’re helping our customers avoid constraints where the systems become overburdened and add more capacity.
“A few years ago, we had a customer in the pulp and paper industry that
wanted to address their energy cost overruns. They went to their workers and said: ‘We want to change our operations and stop running through at certain times of the day.’ This meant that their workers had to turn off their equipment dynamically and make adjustments.
“They eventually settled on workers changing their shift schedules, which led to a 17% saving in their energy bill that year. This was an even bigger win than the company had imagined, because not only did this save them significantly in terms of costs, but the earlier shifts meant workers were getting home in time to have dinner with their families.
“Because of this, workers were happier and getting more rest, meaning fewer workplace injuries. So a small change to improve energy efficiency had an unforeseen ripple effect which led to a happier and healthier workforce as well. Now, I always challenge any company that is thinking about energy management to think about the real benefits it could lead to – because if you want to have a thriving workforce, employee satisfaction and cost efficiency are the way to go.”
However, Daniel emphasises that the work Arcus Power is doing is facilitated by the company’s strategic partnerships – particularly in its work with Italian energy company Enel’s demand response capabilities.
“Enel is North America’s largest demand response aggregator, and we
“ENEL IS NORTH AMERICA’S LARGEST
DEMAND RESPONSE
AGGREGATOR, AND WE HAD A VERY ORGANIC WAY OF LEANING INTO OUR PARTNERSHIP
FROM THE ONSET”
had a very organic way of leaning into our partnership from the onset,” says Daniel. “It was all centred around us getting together around a customer and seeing if we could build value together. We layered Arcus Power’s insights and technology with their demand response solutions.
“We’ve been able to expand that partnership across parts of Canada and the US, and the value to the end user is demonstrated by their increased savings – opening doors and expanding our reach with customers. It’s a phenomenal partnership.
“Through its global reach, Enel has a lot of ways of thinking about how they interact with energy systems and how they can bring value to the market. We’re a smaller company, but we’re very dynamic, very well-positioned to adapt and very focused on solving these same problems – which makes this an excellent matchup.”
According to Daniel, it is Arcus Power’s openness to new ways of thinking or fresh approaches brought to the table
by partners such as Enel which are crucial to the company’s growth and success, particularly when it comes to sustainable practice.
“As a sustainable organisation, keeping our emissions down is at the front of our minds,” says Daniel. “When we look at how we build technology, and the energy cost associated with that, we’re always prioritising low-energy ways to advance our innovation.
“Looking externally, the way we’re supporting the market right now is with our Crbnstream product. This solution is a way of dynamically measuring Scope 2 emissions on the grid. For large consumers that are connected to the grid, they can start to be mindful of the emissions intensity from the sources they’re drawing from on a minute-byminute basis. It’s an awareness tool that can help customers holistically address these challenges and support their sustainability objectives.”
So, what does the future look like for Arcus Power? For Daniel, the company’s momentum and
Maximise the economics of
energy and drive operational excellence
Rising energy demand. Retiring power plants. Extreme weather. Regulatory changes. These are just a few of the factors contributing to energy market volatility as grid operators across North America seek more sustainable methods of procuring capacity. The result? Incentive programmes for real-time load reduction, like demand response, are proving essential to grid reliability – and lucrative for companies who participate.
This volatility can also lead to energy price spikes, which can significantly impact the bottom line for large energy users. Taking command of energy expenses has never been more essential.
Enel’s end-to-end solution – automated, accurate, efficient
Optimise your energy strategy with real-time analytics and efficient energy management – to build a holistic strategy that balances price volatility, peak avoidance and demand response participation:
1. Avoid high energy prices: Minimise exposure to price spikes and periods of predictably high energy prices by reducing energy usage – or shifting operations to times when it’s more economical to operate.
2. Manage Coincident Peaks: Reduce consumption during the highest demand times on the grid to reduce capacity and transmission charges on electricity bills.
3. Participate in demand response: Earn revenue by strategically reducing energy during times of high demand to maintain grid stability.
Energy management should be easy
Explore how you can leverage automation to simplify operations, optimise your strategy and maximise your energy flexibility.
Get the most value from your energy with Enel
A leader in demand response and virtual power plants, Enel North America can help you maximise the value of your energy and demand response participation. We work with you to design a strategy based on your energy assets and industry-specific operations – helping you earn more and save more while minimising operational disruption.
achievements so far indicate a bright future.
“When I imagine the future of Arcus Power, I’m very optimistic about how we can continue to help enterprises thrive,” says Daniel. “Because when I look at what we’re already doing, we’re addressing issues around change management and bringing more people into solving the problems facing so many workforces.
“I’m not concerned about competition. I think there’s a crucial need in North America today to solve these problems, so it doesn’t feel like a competition right now. Instead, it’s all about getting in the game and finding solutions. There are rapid advancements taking place in this space, so we’re able to have a very real and very rapid impact on the world.
“I’m incredibly excited by the fact that we’ve already been able to provide hundreds of millions of dollars in value or savings, and I can’t wait to see how emerging technologies will push this to new levels. The energy sector has tried the competitive mindset for so many years, and now I think it’s time for the collaborative mindset to take over and show the value of its own worth.”
Learn more about Arcus Power here.
ADDED VALUE
FINDING SUCCESS IN TOUGH TIMES
“I have a lot of energy for this business,” says Daniel. “It’s where I focus all of my attention. I’ve been doing this for a long time, and the secret is that I actually really care about the work that we’re doing.
“When I went into startup mode, people told me to pick a business that you care the most about, and the one that will give you success in your toughest times. And it’s true. I’ve gone through tough times, but we’ve emerged in a very successful way, and I’m hyper-focused on how we can continue to scale up the company.”
DELIVERING VALUE WITH NEW INNOVATIONS
“I first read Sapiens: A Brief History of Humankind by Yuval Noah Harari in 2020,” says Daniel. “What came to mind was that the notion of rapid growth and innovation is far greater than anything any of us have ever prepared for.
“I went back to our leadership team and said that the rate of
change and the rate of innovation that is going to happen will exceed our ability to stay in front of it. So we have always got to be thinking about the future and planning to deliver real value. This was right before AI really took off, so this was a deeply valuable lesson for us to zero in on new developments, and it’s really kept us at the forefront of innovation.”
EVENTS
Daniel is excited for the coming months, where he has several exciting opportunities to connect and contribute at some of the leading industry events. He is particularly looking forward to attending and presenting at the following events:
ATTENDING
• NAEMA 2024 Fall Conference: October 9-11, 2024 (Nashville, Tennessee)
• S&P Global Insight’s Nodal Trader Conference: October 23-25, 2024 (Washington DC)
• Energy Transition North America: December 4-5, 2024 (Houston, Texas)
PRESENTING
• NAEMA 2025 Spring Conference: April 5-7, 2024 (Scottsdale, Arizona)
• North American Blockchain Summit: November 20-21, 2024 (Dallas, Texas)
• Supply Chain Digitalization Conference: May 1-2, 2025 (Houston, Texas)
Connect with Daniel
www.arcuspower.com