Virtual Power Plant: enercity and Kraken to jointly unlock full potential of the smart grid

• Partnership to optimise energy usage and deliver enhanced grid reliability
• Virtual power plant manages distributed generation and storage assets as a coordinated, smart system
• Kraken operating system helps open new revenue streams through seamless participation in flexibility markets

Hanover / London – 6th May 2026 - The energy company enercity has entered into a strategic partnership with Kraken – the global operating system for energy – to jointly develop a new, high-performance virtual power plant (VPP).

The aim of the collaboration is to digitally connect decentralised generation assets, grid-scale batteries, and controllable loads, optimise them as a single, coordinated system, and enable seamless participation in wholesale energy markets.

enercity contributes a broad portfolio of electricity and heat generation assets, while Kraken provides the technological infrastructure and expertise in aggregating decentralised assets and delivering seamless market access across Europe. Through this partnership, Kraken further strengthens its position as a provider of digital infrastructure that supports the energy transition.

A changing energy landscape requires flexible solutions

As renewable energy continues to expand across the electricity and heating sectors, the number of decentralised generation assets is steadily increasing, driving up the complexity of market participation. At present, however, trading options for decentralised assets remain limited in Germany. This is due in part to fragmented IT landscapes and the absence of end-to-end digital processes among market participants. As a result, smaller generation assets in particular are frequently excluded from flexibility markets and short-term trading opportunities.

“In a dynamic and multifunctional energy landscape, efficient control mechanisms are essential. Without digital processes, real-time data, automated forecasting, and intelligent algorithms, this level of complexity cannot be managed. Anyone aiming to succeed in the energy market must combine digital expertise with deep energy industry expertise. VPPs are therefore not only a technical tool, but a central element of the transformation toward a resilient and efficient energy system” says Jean-Baptiste Cornefert, Head of Trading & Energy Markets at enercity.

Greater economic efficiency, increased resilience

An energy system built on decentralised solutions must operate as safely and efficiently as a single large-scale power plant. In this context, the VPP becomes the central nervous system of the energy transition, combining the capacities of diverse assets into a critical mass, capable of participating effectively in electricity markets.

At the core of the solution is a holistic optimisation approach. “As renewable build-out picks up pace across Europe, the challenge facing us today is one of coordination, not capacity. By orchestrating distributed assets as a single, intelligent system, Kraken balances the grid and enables better use of cheap, abundant, clean energy. Together with enercity, we’re building a smarter, more flexible energy system for Germany”, explains Charlotte Johnson, General Manager of Flexibility at Kraken.

Cornerfert adds: “A modern virtual power plant seamlessly integrates electricity and heat. It decides in real time whether electricity should be marketed directly, stored temporarily in batteries, or converted into thermal energy via power-to-heat. This addresses the core challenge posed by volatility: making energy available when the market needs it. The virtual power plant is therefore at the heart of sector coupling.”

New business models and clear customer benefits

Going forward, the VPP will cover the entire value chain: from the highly automated onboarding of assets, to their real-time optimisation and continuous monitoring of individual asset profitability, through to seamless market access. It thus creates the foundation for a range of salable business models. These include direct access to wholesale energy markets, the optimisation and flexibility trading of battery storage systems, participation in the balancing mechanism, and the intelligent integration of electricity and heat generation, such as in the optimisation of combined heat and power (CHP) systems for district heating.

“The energy transition requires scalable digital solutions that make complexity manageable”, says Johnson. “Together with enercity, we are demonstrating how virtual power plants deliver not only technical advantages, but above all tangible value for all market participants.”

-ENDS-

Press Contact enercity:

Jochen VennemannMobile: +49 173 1792680Email: jochen.vennemann@enercity.de

About Kraken

Kraken is the most-loved and proven operating system for energy. Powered by Utility-Grade AI® and deep industry expertise, we help utilities transform their tech and operations so they can lead the energy transition.

Kraken supports 90+ million accounts worldwide, from households and businesses to large industrial customers, enabling utilities to innovate faster, unlock revenue, make energy more affordable for customers, and create a smarter, more resilient grid. Trusted by leading energy companies like EDF Energy, E.ON Next, Octopus Energy, Origin, Plenitude, National Grid and Tokyo Gas, Kraken consistently delivers measurable results, including up to 40% greater efficiency and 3× improved customer satisfaction.

Our operating system delivers better outcomes from generation, through distribution, to supply – unifying data, automation and AI that’s designed and constantly optimized for utilities in one platform. With a constant stream of new software releases, our clients are equipped for the future. And with an unparalleled track record for speedy, seamless migrations, we’re helping utilities around the world power the possible.

Headquartered in London and New York, with regional centers in Paris, Tokyo and Melbourne, our mission is to make a big, green dent in the universe and improve one billion lives.

https://kraken.tech/

About enercity – driving force of tomorrow’s energy world

enercity AG is northern Germany’s integrated partner for the energy and heat transition. We build, operate, and connect renewable energy systems, heat solutions, and storage assets. By intelligently linking electricity, heat, and mobility, we create a stable, future-proof, and climate-neutral overall system. We convert billions in investments into regional value creation and strengthen the region as a business location for industry, municipalities, and households. We rely on technological flexibility solutions to stabilise energy prices through smart control and to make the energy transition affordable. enercity is a reliable anchor in a complex world—we are turning the energy transition into a local advantage for the entire region and for Germany as a whole. With revenue of approximately €6.21 billion and around 4,000 employees, the group is one of the largest municipal energy companies in Germany (as of fiscal year 2025). For more information, please visit: www.enercity.de/press