Kraken and United Illuminating Enter Partnership to Pilot Smart Energy Tech, Reduce Grid Constraint in Connecticut

Rhea-AI Summary

Kraken, in partnership with United Illuminating (UI), selected for Connecticut's energy program, aims to reduce energy consumption by 15-20% for households, leading to potential 30% savings on power bills. The initiative aligns with Connecticut's climate goals and could bring over 450 MW of flexible load to the region, reducing grid congestion and preventing blackouts. Kraken's SmartFlex technology enables efficient energy usage optimization for electric vehicles and heat pumps, showcasing a significant step towards a sustainable energy system.

Insights

Energy Market Analyst

The collaboration between Kraken and United Illuminating (UI) is a strategic move that addresses the growing need for energy efficiency and grid optimization. With the integration of SmartFlex technology, UI customers are positioned to experience significant reductions in energy consumption, which is expected to directly translate to cost savings. The projected 15-20 percent decrease in energy usage and up to 30 percent reduction in electric bills are substantial, potentially influencing customer satisfaction and retention.

Moreover, the potential for a 450 MW of flexible load introduced to the Connecticut grid represents a notable shift towards more sustainable energy practices. This flexibility could enhance grid reliability and reduce the likelihood of blackouts, which is particularly relevant during peak demand periods. The success of this initiative could serve as a blueprint for similar programs nationwide, potentially impacting the energy sector at large.

Environmental Policy Expert

Connecticut's climate goals are ambitious, seeking a 45 percent reduction in greenhouse gas emissions by 2030. The partnership between Kraken and UI directly supports these objectives by facilitating a decrease in energy consumption through automated optimization of electric vehicles and heat pumps. This initiative not only benefits individual households but also contributes to the broader effort of decarbonizing the state's electric grid.

The program's alignment with the Public Utilities Regulatory Authority’s Innovative Energy Solutions Program indicates a regulatory endorsement of innovative technologies to achieve environmental targets. This could encourage further investments in clean technology and serve as a model for other states aiming to reduce their carbon footprint, thereby influencing environmental policy at a national level.

Financial Analyst

From a financial perspective, the partnership between Kraken and UI is indicative of the growing market for energy management solutions. Kraken's expansion, including its recent licensing agreement with Tenaska and its goal to serve 100 million energy accounts by 2027, demonstrates the company's robust growth trajectory. The financial implications for Avangrid, Inc., UI's parent company, could be significant if the pilot program proves successful and scalable.

Investors may view the partnership and the technology's potential to reduce costs and improve grid efficiency as positive indicators of Avangrid's commitment to innovation and sustainability. The anticipated cost savings for consumers could lead to increased adoption rates, which in turn may drive revenue growth for the company and enhance shareholder value.

• Selected for Connecticut’s Public Utilities Regulatory Authority’s Innovative Energy Solutions program, Kraken will enable United Illuminating (UI) to offer dynamic supply and demand response management solution to households
• UI’s electric vehicle and heat pump customers in New Haven and Bridgeport can benefit from up to 20 percent reduction in energy usage and a 30 percent cut in power bills

NEW YORK--(BUSINESS WIRE)-- Kraken, a proven end-to-end enterprise platform for energy management, has partnered with United Illuminating (UI), a subsidiary of Avangrid, Inc. (NYSE: AGR), to introduce an intelligent control and optimization solution for UI’s customers.

The project will enable households to reduce their energy consumption by 15-20 percent and grids to ease constraints caused by high demand, all without the customers having to lift a finger. Set to launch in June 2024, the pilot aligns with Connecticut's ambitious climate goal of a 45 percent reduction in greenhouse gas emissions by 2030.

Powered by Kraken’s SmartFlex technology, UI customers will be able to optimize electric vehicles and heat pumps to efficiently minimize their energy usage. This allows the supplier to automatically match customers’ energy usage to the greenest and cheapest times. Through this program, households can save as much as 30 percent on their monthly electric bills, the equivalent of $120-$200 per device.

“Today marks a significant milestone in our journey towards a more dynamic, customer-centric energy system. This partnership with United Illuminating is a perfect opportunity for us to show how the Kraken platform can build a lasting change for the communities in the region," said Kraken CEO Devrim Celal. “We are proud to work with UI to optimize customer’s energy usage, and play a role in Connecticut's net zero goals.”

Selected to participate in the Connecticut Public Utilities Regulatory Authority’s (PURA's) Innovative Energy Solutions Program, Kraken and UI will enable a decarbonized, affordable, and equitable electric grid while having the capability to minimize grid congestion during peak times. A 20 percent adoption among UI's customer base would bring more than 450 MW of flexible load to the Connecticut region, which could be strategically managed to take stress off the grid and prevent blackouts.

“With the creativity and innovation of companies like Kraken, we in Connecticut can build a more sustainable, efficient energy system to benefit all electricity users,” said Frank Reynolds, President & CEO at UI. “Today, we at UI are proud to announce our partnership with Kraken to make an industry-leading energy management platform available to our customers, and we look forward to seeing the positive impact it will have on customers’ energy usage and costs.”

This partnership follows the successful US launch of SmartFlex and licensing agreement with energy asset manager Tenaska in June 2023. With Kraken currently orchestrating 155,000 domestic devices across the globe—totaling over 38.35 GW of contracted power—it stands as one of the largest residential virtual power plants in the world. ​​Currently active in 18 countries, Kraken is on track to serve 100 million energy accounts on its platform by 2027, with 10% of these in North America.

To learn more about how Kraken is advancing the global energy transition, visit kraken.tech.

About Kraken
Kraken Technologies offers a best-in-class end-to-end platform for energy supply and is operating in the UK, Japan, US, New Zealand, Australia, and most of mainland Europe. Kraken’s proprietary platform is contracted to serve 54 million customer accounts across the globe through licensees. Its first client was Octopus Energy, where Kraken manages 7.7 million retail customers globally and over 60,000 business customers (the largest of which is Arsenal FC).

Based on advanced data and machine learning capabilities, Kraken automates much of the energy supply chain to allow outstanding service and efficiency as the world transitions to a decentralized, decarbonized energy system. Kraken’s flexibility arm is currently contracted to manage over 38 GW across 130,000 green energy assets in 12 countries.

Kraken Technologies is part of Octopus Energy Group and was developed to enable select third parties to take advantage of the technologies developed by Octopus Energy. It has already been licensed by major global players, including Origin Energy, E.ON and EDF. https://kraken.tech/

About United Illuminating
The United Illuminating Company (UI) is a subsidiary of AVANGRID, Inc. Established in 1899, UI operates approximately 3,600 miles of electric distribution lines and 138 miles of transmission lines. It services approximately 341,000 customers in the greater New Haven and Bridgeport areas of Connecticut. UI received the Edison Electric Institute's Emergency Response Award in 2019 and 2021. For more information, visit www.uinet.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240226207417/en/

Oluwatona Campbell

kraken@berlinrosen.com

Source: Kraken Technologies

FAQ

What is the partnership mentioned in the press release?

Kraken has partnered with United Illuminating (UI), a subsidiary of Avangrid, Inc. (NYSE: AGR), to introduce an intelligent control and optimization solution for UI’s customers.

What percentage reduction in energy usage can households expect through the initiative?

Households can expect a 15-20% reduction in energy consumption, potentially leading to 30% savings on power bills.

What is the goal of Connecticut's climate initiative mentioned in the press release?

Connecticut aims for a 45% reduction in greenhouse gas emissions by 2030, aligning with the pilot project's launch in June 2024.

How much savings can households expect on their monthly electric bills through the program?

Households can save as much as 30% on their monthly electric bills, equivalent to $120-$200 per device.

What impact could a 20% adoption of the program have on the Connecticut region?

A 20% adoption could bring over 450 MW of flexible load to the region, helping to manage grid stress and prevent blackouts.