Updated: Jul 20, 2022
- Two-decade deal will see Ylem’s entire behind and front-of-meter portfolio integrated with Origami’s cloud-based energy data platform.
- Move to long-term software contracts shows that building an agile ‘software layer’ is becoming more important to energy firms than locking down revenue streams.
Ylem Energy (Ylem), the business energy generation and storage specialist, has signed a 20-year Software-as-a-Service (SaaS) contract with independent energy technology solutions provider, Origami.
Under the terms of the contract – one of the longest SaaS deals ever agreed in the industry – Ylem’s present and future portfolio of low carbon, on-site generation and storage assets will integrate with the Origami energy data platform.
This will enable Ylem to capture and orchestrate the data it needs to participate fully in the short-term energy and power markets – both for its behind-the-meter assets operated on behalf of commercial and industrial customers, and its front-of-meter generation and storage portfolio connected directly to the grid.
Ian Gadsby, Managing Director, Ylem Energy, explains: “Our asset base has become significantly more diverse and flexible as we help our customers respond to evolving market opportunities. We must therefore also invest in the digital infrastructure that makes this possible and future proofs our assets. That’s now a primary concern for all energy asset owners and operators, and we recognised the need to do so independently of our valued trading and route-to-market providers.
The Origami partnership gives us a powerful software ‘engine’ that we can rely on to keep us at the front of the digital curve, while also allowing us to pursue our own digital innovation built on top of the Origami platform.”
The move from standard 5 to 7-year SaaS deals to long-term contracts spanning an asset’s lifetime is thought to signal a shift in priorities for firms involved in the energy transition, with comprehensive access to real-time data now considered more mission-critical to future energy trading ambitions than long-term off-take guarantees.
Firms like Ylem are amongst the first energy transition players to invest on a long-term basis in the ‘software layer’ that is the fundamental enabler of the versatility and flexibility needed to manage and trade energy effectively in today’s dynamic marketplace. This will be particularly critical as real-time data requirements come into play as part of Net Zero Market Reform.
Peter Bance, CEO of Origami, said: “Real-time data is the key to navigating the volatility of today’s power and energy markets, which means software has become king. It allows you, in real-time, to see what’s going on, decide what to do about it, and take action. Agility has become far more valuable than perfect foresight in the energy transition. Long-term independent SaaS partnerships enable that agility, meaning risks can be managed and opportunities maximised. This is how tomorrow’s market will operate”.