Episode 26

From legacy to flexibility: Why HEMS is the future of utilities

Episode 26
·
30 mins
·
May 27, 2025

From legacy to flexibility: Why HEMS is the future of utilities

Andrea Albergoni explores how utilities can remain competitive in an increasingly decentralized energy landscape. He dives into the role of home energy management systems (HEMS) in enabling grid flexibility, complying with evolving regulations and delivering smarter, customer-centric services across Europe.
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What you’ll learn in this episode

Why utilities face new challenges with DER coordination

Andrea explains that many DER devices operate in isolation, limiting their collective value. HEMS can aggregate and intelligently coordinate these assets to support grid stability, especially during events like the recent Iberian Peninsula blackout.

The role of modular HEMS in upgrading legacy systems

gridX’s modular HEMS platform, XENON, allows utilities to flexibly adapt to fast-changing regulations and market needs without disrupting existing infrastructure, unlike rigid legacy IT systems built for a centralized energy model.

How partnerships and collaboration unlock value

Andrea highlights that no single utility can manage the entire DER value chain alone. Strategic partnerships enabled by HEMS platforms are essential for offering scalable, integrated energy solutions that enhance the customer experience.

Regulatory changes as both challenges and opportunities

New European regulations, such as Germany’s §14a, create compliance demands but also unlock new value streams for utilities and end users, like discounts on grid fees when flexible assets respond to market signals, which HEMS help facilitate.

Building customer engagement and trust through digital tools

HEMS often come with user-friendly apps that empower prosumers and flexumers to monitor, control, and optimize their energy use in real time.Turning passive consumers into active participants that strengthen utility relationships.

What the future energy market looks like in 2030

Lastly, Andrea predicts that successful energy companies will no longer compete just on price but on delivering superior digital infrastructure, flexible services, and excellent customer experiences. All fueled by smart energy management systems.

Key quotes – Redefining utility competitiveness: From kilowatts to smart, flexible infrastructure

“Home energy management systems are not just a nice-to-have.They are a leverage point for the energy transition, enabling utilities to move beyond commodity services and create high-value offerings for prosumers.”

“We used to live in a world with a very relatively straightforward system, and we're now moving to something much more complex, shaped by decentralization, electrification and the rise of the prosumer.”

“The most competitive energy players in 2030 won’t be those offering the cheapest kilowatt-hour, but those delivering the best customer experience, flexible services, and smartest digital infrastructure.”

“By [a modular HEMS], we mean software that allows, for example, to activate different use cases and functionality depending on market needs …We need intelligent systems that are fast adapting to the changing regulations that we are seeing in the European market.”

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