Partnership-based, structured, efficient — Exnaton and Kelag look back on a successful collaboration

By 2030, 100 percent of electricity in Austria should come from renewable energy sources. This is stated in the Renewable Expansion Act (EAEC), which came into force in summer 2021 and poses numerous challenges for traditional energy supply companies in Austria. A gradual adjustment of previous business models is now necessary. Kärntner Elektrizitäts-Aktiengesellschaft, Kelag for short, one of the leading energy service providers in Austria, has taken on this full drive and, together with Exnaton, has developed and already implemented future-oriented concepts for a sustainable energy industry.

In an exclusive interview with Stefan Wakonig, project manager for Kelag's energy communities, we looked at 1.5 years of close cooperation and partnership and reviewed the highlights. Read our success story so far and find out how our billing software enabled our partner to become an energy service provider.
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Hi Stefan, thank you so much for taking time today to share insights into our collaboration. Let's talk about the early beginnings: What were the problems and needs before the collaboration? What solutions did you hope for as a result of the collaboration?

Like all energy supply companies in Austria, we were also confronted with the Renewable Development Act (EAEC) in 2021, which provides for the expansion of energy communities. The big challenge at the beginning was to understand the legal texts and this completely new topic at all. We also had to consider what role we could play as an energy supply company with regard to energy communities in the future. However, a clear direction became apparent relatively quickly, namely towards an energy service provider. In May 2021, we launched the Energy Communities project at Kelag and thought about how we could service them. Through an SAP consulting company with which Kelag works, we then came across Exnaton. Shortly after, we also met and exchanged ideas in virtual meetings.

At the beginning, we wanted to find out who Exnaton actually is, what access you have and what know-how is available. It is rather untypical that a Swiss start-up is so present on the Austrian energy market and is also equipped with so much know-how about energy communities. That impressed us, of course. At the beginning of the project, we looked at various solutions and considered how we could specifically offer energy billing, visualization and a complete overview of the market processes of energy communities. We could see that thanks to you, we are much faster and more flexible in managing energy communities. Especially because it is a customer-oriented solution that allowed us to enter the market quickly.
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Why did you choose Exnaton?

Compared to other providers, your software and company were simply the furthest. You offered us a finished product that only needed to be adapted to our needs. Your know-how about the market and the functionality of the software finally convinced us. It is flexible and customer-oriented. With you, we can react quickly to changes in the market and legal framework.
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What were the highlights and biggest successes of our collaboration?

There were a variety of highlights. The first was when the finished Kelag design platform went online. The second highlight, of course, was that we were able to onboard the first pilot energy community and bring members to the platform. It was a really cool feeling and a great experience to see energy flow. This is followed by continuous development, which allows us to onboard new participants from energy communities fully automatically using the tool.
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How would you describe working together on a relationship level? How was the communication and how were problems resolved?

It was a very collaborative collaboration right from the start. We saw this already when the first contracts were signed and the cooperation was finalized. In the course of cooperation, this partnership has become even more obvious. We're learning a lot from you. But you too receive continuous feedback from us and implement it. Small problems or difficulties are completely normal in a collaboration, otherwise we would not be able to develop further. In such a case, we communicate quickly and openly, you analyse our feedback and accept it. So far, we have always been able to remove them quickly and easily. Even if there is no direct solution ready at first, take on the challenge and approach us with suggested solutions.
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How would you describe our collaboration in 3 words?

Partnership-based, structured and efficient.
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Let's take a look at the future: What goals does Kelag aim for the future and how can Exnaton support them?

The megatrends in the energy industry are clear: decentralization and digitization. The expansion of renewable energies is therefore a major issue that we must address holistically as an energy supply company and as a group. With regard to energy communities, we are currently dealing with democratization, i.e. that citizens live the concept of energy communities and exchange energy with each other. This is a major challenge, but also an opportunity for us to develop from the role of traditional energy supplier to innovative energy service provider.
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How is Kelag preparing for its time as a digital energy supply company?

Precisely through a gradual transition to an energy service provider. A lot is currently happening internally: We are investing heavily in standardized online processes, have completely updated our self-service area, which makes us even more customer-oriented. Of course, this also includes a good and easy-to-understand visualization of energy data. There are also systems such as intelligent consumer goods and smart-meter-based tariffs based on quarter-hour values. The industry is moving ever faster and we are ready for these changes.
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With regard to industry: What are the trends and future developments that you regard as groundbreaking?

In Austria and in the entire DACH region in general, we are observing an extreme increase in photovoltaic systems. These are now a standard product that no longer needs to be explained. In exchange with our specialist partners, who install photovoltaic systems for us, we find the fact that 75% of PV systems are combined with battery storage systems particularly exciting. These figures did surprise us a bit. We also see that end customers are definitely prepared to invest more money in order to become even more independent. This expansion of renewable energy is, of course, an important point for us as an energy supply company. Our goal is to invest two billion euros in renewable energy over the next ten years. This includes not only photovoltaics, but also wind and hydropower. In this context, the optimization of these systems is also becoming increasingly important. In other words, not just the classic mapping and billing of energy data, but an even more intelligent management of energy, in which additional flexibilities are managed.
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What developments do you see in the area of energy communities?

There are already a considerable number of energy communities in Austria. In Carinthia, for example, around 80 communities are already active. Last year's growth was very strong and will continue to do so. For me, there is no question that municipalities, private and commercial customers will continue to establish energy communities despite difficult and complex market conditions. This is because customers want to be independent of the energy market.
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How does an energy supply company have to position itself in the long term if all households have PV systems & batteries?

This will affect energy supply companies like us in several areas. To give an example, this involves forecasting capabilities: the complexity of long-term forecasts in the area of generation and electricity consumption is increasing with the expansion of renewable energies. On the other hand, customers and their consumption patterns are also continuing to develop. Through PV systems and battery storage systems, customers are becoming more and more prosumers. In addition, electrification, such as the use of heat pumps and electric mobility, is adding new consumers.

In summary, the market will become much more flexible. The traditional business of an energy supply company, which exclusively supplies electricity to its end customers, is being expanded to include new areas. There is much more of an exchange in which customers take on a more active role in the energy market. At Kelag, we are moving from an energy supplier to a customer-oriented energy service provider.
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What will the collaboration between Exanton and Kelag look like in the future? What are the next steps?

The collaboration will certainly increase even more. In the future, we will focus on two key areas: On the one hand, the sales business, which is already doing very well. So that means that we want to handle more energy communities via your platform. The second strand will be continuous development. Energy communities as things stand today are not yet fully completed. In summer and autumn, the Citizen Energy Community is also to come all over Austria. In spring 2024, multiple participation in energy communities and also the active customer as a new market role. Something is therefore constantly happening. That is why continuous development of the software on your part is of course also required. In turn, we will need to further develop and expand our product portfolio. Together, we will develop solutions for the future. As a next step, we are planning to process Kelag tenant electricity systems, i.e. classic joint generation systems, via your software. This will make it even easier for us to handle customers.
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Concluding words: What would you like to tell us?

At Kelag, we believe that we have definitely taken the right step by working with Exnaton. Thanks to you, we can operate much more flexibly on the market and are able to respond to customer requests in a completely new business area. Working with you is simply fun and we are happy to continue working with you.
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