Enercity, Kraken Team Up for Germany Virtual Plant

• Enercity teams up with Kraken to build Germany’s virtual power plant, uniting batteries, flexible loads and generation—optimizing market participation and grid balancing as renewables expand.

Enercity AG will partner with UK energy software firm Kraken to develop a virtual power plant in Germany that digitally connects decentralized generation, battery storage and controllable loads. The system is intended to optimize these assets as a single coordinated platform, enabling flexible participation in electricity markets as renewables expand and the number of small-scale assets grows.

Enercity will contribute its electricity and heat generation portfolio, while Kraken will provide the technological infrastructure. Enercity said commercial options for small assets in Germany are currently limited, excluding many from flexibility trading and short-term opportunities. Kraken expects improved grid balancing and better use of low-cost renewables.

How will EnNercity’s Kraken partnership build a German virtual power plant?

• EnNercity and Kraken are combining utility assets with energy software to create a German virtual power plant (VPP) that treats many separate, small-scale devices as one controllable “power station”
• The VPP will digitally link decentralized electricity generation (including rooftop solar and other distributed resources), battery storage systems, and controllable loads (such as industrial and residential flexible demand where available)
• Kraken’s software layer will coordinate forecasting, optimization, and real-time control—deciding when to charge or discharge batteries, when to shift flexible consumption, and how to dispatch generation to stay within technical limits
• EnNercity will supply the portfolio and operational know-how needed to aggregate assets reliably at scale, including grid-relevant constraints and the integration of energy and heat-related operations where applicable
• Rather than operating assets independently, the platform will aggregate them into a single bidding and dispatch framework, so the combined capacity can respond to grid needs and market signals
• The VPP will enable participation in balancing and ancillary services by using coordinated control to help stabilize supply and demand as renewable generation variability increases
• By pooling many distributed resources, the partnership aims to make it economical for smaller participants to access markets that previously favored larger, centralized aggregations
• Improved ability to exploit hourly and sub-hourly price and grid conditions is expected, helping batteries and flexible loads to support renewables at times when generation is high and demand is lower
• The system’s scheduling and automation will be designed to maximize self-consumption and flexibility value, while reducing the risk of overloading local grids through coordinated constraints management
• As the number of distributed assets grows, the approach is meant to scale aggregation without needing one-off control for every device, turning distributed flexibility into a continuously manageable resource
• Overall, the Kraken–EnNercity partnership is intended to function as an orchestration platform that converts dispersed distributed energy assets into predictable, dispatchable capacity for German electricity market and grid services