Energy as a Controllable Resource

© AdobeStock

Our AI expertise in load and flexibility management

Energy market volatility is not only a risk for industry – it also presents a strategic opportunity. While conventional load management typically focuses on reactive peak shaving, we take a systemic approach. We consider energy flows as a controllable resource and flexible industrial processes as a virtual power plant.

Our core expertise lies in developing AI-driven methods to identify, plan, and optimally utilize industrial energy flexibility. Building on validated architectures and algorithms from the Kopernikus project SynErgie, we enable companies to respond intelligently to both internal operational requirements and external market signals – transforming energy from a pure cost factor into an active source of value.

In this way, we turn energy into a value-generating resource and make flexible processes an integral part of energy-adaptive production.

From cost driver to value creator

  • Conventional load management – reactive cost reduction

    The traditional objective is to reduce operational energy costs by limiting peak loads (“peak shaving”). When a predefined threshold is exceeded, loads are curtailed. However, the potential to respond to dynamic market prices remains largely untapped.

    Intelligent flexibility management – our approach

    We take a proactive, market-integrated approach. Energy and production systems are treated as a connected optimization problem. AI models plan loads, storage, and generation based on forecasts of prices, weather, and processes. The goal is to maximize overall economic value – through cost reduction, revenue generation, and CO₂ reduction.

    This approach is built on seamless data integration: production, energy, and market data are combined in a digital twin. This virtual system model enables the simulation, evaluation, and real-time control of flexibility. Control is achieved through a learning feedback loop of forecasting, optimization, and automated execution. The system independently identifies when load shifting is technically feasible and economically viable, and implements decisions automatically via standardized interfaces (e.g., EFMS API).

    The result is an intelligent, energy-flexible factory – a virtual power plant that actively responds to market, price, and grid signals while combining energy efficiency, economic performance, and climate impact.

  • 1. Potential analysis & the “energy footprint”

    Every optimization starts with understanding. We determine the energy footprint of your production – a key metric that reflects energy consumption per order or product. Based on this, we identify your flexibility potential:

    • Inherent storage: We analyze processes with natural thermal inertia (e.g., melting furnaces, cold storage, building envelopes) or process-related buffers (e.g., compressed air storage, material inventories) that enable temporal decoupling of energy use and production.
    • Shiftable loads: We identify energy-intensive processes whose start times can be flexibly adjusted within defined limits.
    • Quantification: We precisely determine how much power (kW) can be shifted for how long (kWh) without affecting your core processes.

    2. Predictive forecasting as a basis for decision-making

    Forward-looking control depends on the quality of the forecasts. We develop high-precision, probabilistic forecasting models for all relevant variables:

    • Load forecasts: For non-controllable base loads.
    • Generation forecasts: For volatile on-site generation (e.g., photovoltaic systems).
    • Price forecasts: For relevant energy markets (day-ahead and intraday) to support operational and trading decisions.

    3. Mathematical optimization and AI-based decision-making

    This is the core of our research expertise. We translate production environments into mathematical models and determine optimal operating strategies.

    • Model-based optimization: We formulate processes as stochastic mixed-integer linear programs (MILP). These models identify economically optimal operating schedules while accounting for all technical and process constraints (e.g., switching frequency, temperature limits).
    • Learning systems based on deep reinforcement learning (Deep RL): For highly dynamic environments, we develop adaptive control strategies. By training through extensive simulations, the system learns forward-looking strategies to respond to uncertain market conditions and to maximize long-term economic performance.

    4. Automated control and implementation

    Our expertise extends beyond planning. We develop the logic and interfaces required to implement optimized decisions in real-world operations. This includes controller design, integration with control systems (e.g., PLC, MES), and the establishment of robust, bidirectional communication. 

  • Our methods have been successfully validated and implemented in practice through research and industry projects:

    • Price-oriented production planning: We adjust job sequencing or temporarily interrupt processes to shift energy-intensive steps (e.g., heating a furnace) to periods of low electricity prices. In pilot projects, this has led to significant reductions in energy costs.
    • Cross-commodity optimization: In heat planning, our system dynamically selects the most cost-effective energy carrier. It automatically determines whether it is more economical to generate heat using low-cost electricity (e.g., via power-to-heat) or gas.
    • Active flexibility trading: Based on price forecasts, our systems generate optimal bids for day-ahead and intraday markets. Identified flexibilities thus become a direct and additional source of revenue.
    • Strategic tariff evaluation: We simulate the operation of your systems under different dynamic electricity tariffs. This provides a sound, quantitative basis for selecting the most economically advantageous tariff model.
  • Our algorithms are not developed in theory alone – they are designed and validated under demanding, real-world conditions. At our unique WanDa facility (Flexible Compressed Air Research Facility), we integrate prototypes into an industry-relevant test environment to evaluate their performance in reproducible scenarios.

    In this demonstration setup, compressed air flows either through intact hoses or through hoses with barely visible leaks, bends, and imperfect connections – the most common sources of leakage in industrial systems. Regardless of the path the air takes, the difference is invisible to the naked eye. The actuators carry out their tasks as usual.

    However, our system captures what remains unseen. It measures whether the air flows at higher or lower pressure, determines flow rates, tracks actuator positions, monitors valve states, and even records ultrasonic signals. With up to 20 individually controllable actuators, we simulate complex industrial load profiles and generate large volumes of data at sampling rates of up to 100 Hz – amounting to as much as 300 GB per operating day.

    This extensive, high-quality dataset forms the basis for developing AI models that perform reliably and accurately even in complex industrial environments.

FAQ – Frequently Asked Questions on flexibility management

What is the difference between load management and flexibility management?

Load management is typically a purely internal, reactive measure to avoid costs – for example, by shutting down equipment to reduce peak loads. Flexibility management, by contrast, is a proactive and strategic approach. It optimizes energy consumption not only based on internal requirements but also in response to external market signals (e.g., electricity prices), with the goal of maximizing overall economic value through cost savings and additional revenue.

Which processes in my company are actually “flexible”?

Typical flexibility potential lies in processes with inherent storage capabilities. These include, for example, thermal processes (furnaces, dryers, cold storage) where temperature can vary within defined limits, as well as processes with material buffers (compressed air systems, tanks, silos). The temporal shifting of entire production orders can also represent a form of flexibility.

Do I need to become an energy trader to benefit from this?

No. Our AI-based systems handle the complexity. They analyze market data, determine optimal strategies, and can automatically prepare or even place trading bids. You define the strategic framework, while the AI manages the operational optimization.

What is “deep reinforcement learning” in simple terms?

Imagine an AI agent that learns in a simulation, thousands of times over, how to operate your energy system in the most profitable way. It tests different strategies, is “rewarded” for good decisions (low costs, high revenues), and “penalized” for poor ones. Over time, it develops a form of intuition that enables it to respond proactively and effectively even to new and unpredictable market situations.

How robust is this type of optimization when forecasts are uncertain?

This is a central focus of our research. We use probabilistic forecasts that reflect a range of possible future developments. Our optimization models (e.g., based on CVaR optimization) explicitly account for these uncertainties to generate robust operating strategies. They balance the potential for maximum savings with the risk of forecast errors. Studies show that even with moderate forecast uncertainty, the economic benefits remain significant.