Energy Supplier Demand & Distribution Optimization

inBalance Research Joins Y Combinator to Enhance Energy Market Forecasting

Operating from distributed locations in Cambridge, Massachusetts, and Cambridge, England, inBalance Research has entered the Y Combinator program. This move is intended to facilitate the growth of its business as a key data source for independent energy providers, utilities, and market participants.

Introducing Delphi: A New Analytical Service

The very early-stage startup is marketing a service known as Delphi. This offering aims to deliver detailed analysis to power producers and utilities regarding demand predictions within energy markets.

The effective management of energy load across the power grid has become increasingly critical for utilities nationwide. This heightened importance was underscored by the severe failure of Texas’ power grid following its second “once-in-a-century” storm within the last decade.

Addressing Long-Term Solutions

“A lasting solution necessitates a dual approach,” explained Thomas Marge, co-founder and CEO of inBalance. “This involves a combination of both physical infrastructure and sophisticated software. The appropriate assets must be operational, and robust software is needed to ensure market stability even during extreme events.”

Electricity Price Volatility and the Need for Forecasting

Electricity prices are subject to change every 15 minutes, and substantial fluctuations are not uncommon. According to inBalance, prices can even double within hours in certain regions, even without the severe weather conditions that impacted the Texas grid and led to business failures.

This volatility highlights the importance of accurate forecasting tools. When prices surge, managers of limited, responsive resources – such as hydroelectric power and energy storage – must determine the optimal timing for offering their capacity to the market.

Coming online prematurely or belatedly can diminish revenue from clean energy generation and contribute to higher peak prices for consumers.

The Impact of Renewables and Storage

The situation is further complicated when storage solutions and intermittent renewable energy sources become available simultaneously. This can create downward pressure on prices for both types of assets.

Consequently, increased reliance on fossil fuels may occur later in the day as cleaner sources are depleted. inBalance asserts that its software is designed to predict these pressures.

Marge, along with co-founders Rajan Troll and Edwin Fennell, have long been focused on the challenges presented by large datasets and the energy sector.

Marge’s interest in this field began during his work on a project to optimize the operations of wind farms while based in Lexington, Massachusetts.

A Data-Science Driven Approach

“At its core, we provide a data-science solution,” stated Marge. “This involves understanding the factors that influence every asset in every North American market. We gain insight into how these assets will perform one day to one hour in advance, enabling accurate price forecasting.”

Early Results and Future Expansion

A utility in the Northeast, utilizing the company’s software, has already achieved a 0.2% reduction in emissions. With a focus on renewable energy, inBalance aims to expand these reductions across the 3,000 market participants currently using its forecasting tools for other applications.

The company is also collaborating with a gas peaker plant to mitigate the intermittency of renewable generation sources.

This emissions reduction in New England is particularly noteworthy considering the utility partnership began in December. The company’s forecasting capabilities provide valuable insights into which assets may be most beneficial at specific times.

These assets include natural gas peaking plants, hydropower, pumped hydropower (an energy storage technology), battery or flywheel energy storage systems, and demand response programs that incentivize consumers and businesses to reduce energy consumption during periods of high prices.

Six companies have already visited inBalance to evaluate the Delphi software and have become early adopters. These include a global renewable asset manager and one of the ten largest utilities in the United States, according to Marge.

Leveraging Machine Learning for Accurate Predictions

“We employ machine learning to accurately forecast electricity prices using terabytes of public and proprietary data. Achieving daily power system stability requires both hardware – such as storage and electric vehicle charging infrastructure – and the software to utilize it effectively. inBalance is dedicated to providing that software solution,” the company explained in a statement.

Early Stage Event Announcement

Early Stage is the leading event for startup entrepreneurs and investors seeking practical guidance. Attendees will learn directly from successful founders and venture capitalists about building businesses, securing funding, and managing investments. The event covers all aspects of company development, including fundraising, recruitment, sales, product-market fit, public relations, marketing, and brand building. Each session includes dedicated time for audience questions and discussion. Use code “TCARTICLE” at checkout for a 20% discount on tickets.