Mogens Birkelund, the CEO of S.C. Nordic, is a prominent expert in Denmark when it comes to Demand Response solutions. His company has received awards for its innovative solutions in this field. Despite being the CEO and founder of a rapidly growing company, Mogens’ primary focus is on making himself redundant. He strives to transfer his knowledge and expertise to his team and integrate it into their technology. Mogens is aware that when he fails to do so, he becomes a bottleneck for the rest of the organization.
As the power grids in their potential markets evolve and undergo restructuring, Mogens places great importance on staying updated about these changes and plans. However, the most satisfying part of his daily routine is witnessing the success of their partners’ customers when they go online, start earning money, and eagerly anticipate the next project to begin.
The Journey
Mogens’ journey into the world of SmartGrid technologies and Virtual Power Plants began during his time as a CTO in the Telecom industry. The turning point came in 2009 when Denmark hosted the UN COP15 conference, which placed a strong focus on environmental sustainability. This event, combined with Denmark’s longstanding commitment to green initiatives, inspired Mogens to delve into the development of SmartGrid technologies, ultimately leading to the creation of Virtual Power Plant technology. He took the initiative to establish a startup named GridManager and successfully secured initial funding. However, the market was not yet ready for such innovations, and the venture faced challenges. Recognizing the need to bide their time, they temporarily halted the project.
As the market matured, the role of Aggregator emerged as a viable route to market. This development prompted a restart of the project. Leveraging Mogens’ experience and network, S.C. Nordic quickly became a growth project, expanding its team to 15 members over the last 18 months.
Strengthening Renewable Energy Transition
S.C. Nordic is a prominent player in Scandinavia, specializing in the development of solutions for flexible consumption, which is commonly referred to as ancillary services or Demand Response. This field is considered a critical component for regions transitioning to renewable energy production, as renewable sources like wind and solar power are variable, requiring consumers to use electricity when it’s abundantly available.
As a trailblazer in Denmark, S.C. Nordic was the first independent aggregator to offer demand-side flexibility to the power grid through aggregation. This flexibility encompasses both production and consumption resources, providing a comprehensive solution for the grid’s needs.
S.C. Nordic’s approach allows its customers to purchase certified green power while simultaneously contributing to the growth and utilization of renewable energy sources. This innovative technology is referred to as ‘TrueGreen,’ and it functions as a Virtual Power Plant. The ‘S.C.’ in S.C. Nordic stands for Smarter Consumers, emphasizing the company’s commitment to empowering its customers to become more intelligent and conscious consumers of energy.
Advocating Green Initiatives
Mogens describes himself as a natural entrepreneur with a strong technical background in various types of equipment and a deep understanding of the opportunities within the power grid. He places a significant focus on revenue potential and is committed to the execution and development of projects to the point where they can start generating income.
With an electronics engineering degree and extensive experience in software development, Mogens possesses the skills to identify potential issues with different types of equipment and envision effective solutions for their development. His drive and determination for execution can sometimes make him appear impatient or even a bit hostile to individuals who require more time to make decisions. However, he is conscious of this and makes efforts to ensure that everyone is on board.
Mogens is deeply passionate about environmental sustainability, to the extent that he has entered the realm of politics to advocate for green initiatives. He uses his knowledge and drive to inspire other politicians to recognize the opportunities within the green transition and emphasizes the importance of taking smaller, faster steps rather than trying to create a comprehensive plan before implementation.
Mogens is not only a member of the town council of Skive but is also closely associated with a groundbreaking initiative called Greenlab. Skive has distinguished itself as a pioneering town in Denmark by establishing Greenlab, a designated area where residents are granted special permission to share energy resources among themselves without the usual tax implications. This means they can install wind turbines and develop solar capacity within this area, and those resources aren’t subject to taxation.
Additionally, this unique setup allows for the efficient utilization of excess heat generated by companies, which would typically go to waste. In Greenlab, this excess heat can be shared with other residents who can put it to good use. Greenlab serves as a demonstration of what is possible when tax policies and infrastructure are reimagined.
What’s noteworthy is that Greenlab is located within the same municipality where Mogens resides. By actively participating in local politics, Mogens can bridge the gap between the regulatory knowledge and the practical industrial applications. This collaboration between the municipality and an expert like Mogens highlights the potential for innovative solutions at the intersection of policy and industry.
Collaborative Approach for Market Dominance
Mogens strongly believes in the power of partnerships, recognizing that combining efforts with other entities can result in more significant outcomes than working in isolation. This partnership-driven approach allows for rapid growth and the establishment of a strong market presence while avoiding unnecessary competition.
S.C. Nordic (SCN) has already forged a partnership with Norlys, the second-largest utility company in Denmark. Additionally, they have supporting agreements with other partners, solidifying their position for growth and market dominance in Denmark.
This collaborative approach will extend to the entire Scandinavian region by the end of 2023, with active efforts to seek partnerships in other markets as well.
S.C. Nordic is also a partner in a network formalized by the Foreign Office and the representation in Palo Alto. Through this program, they have explored the U.S. market and are eager to assess its potential while identifying the right partner setup for future endeavors in the United States.
Fueling Innovation
Innovative leaders understand the value that agile small companies can bring to larger organizations. S.C. Nordic (SCN) recognizes this strength and considers it a driving factor for its future growth. SCN intends to position itself as an entrepreneur and innovation center, dedicated to ongoing development and growth.
The company’s strategy for achieving this goal involves offering its technology, expertise, and skills as a technology center that others can leverage and benefit from. SCN aims to play a pivotal role in fostering innovation and driving technological advancements in the energy and demand response sectors.
Search for Young and Open-Minded Innovators
Mogens emphasizes that SCN represents a new industry that will undergo significant development in the next decade, much like the experiences of the past century. This transformation poses challenges to all facets of the industry, from seasoned technicians to emerging market developers.
SCN, like many others, grapples with the global demand for more skilled and motivated individuals. Mogens states, “We are a forerunner in a completely new industry, so we have the find the right people and invest in training and increasing the personal skill sets. We are looking for young and open-minded people that a driven by execution and eager to learn. By young minds, we mean people that are eager to learn and doesn’t confront the world with an ‘already full mind’ mindset.”
Risk That Paid Off
Mogens acknowledges that one of the most significant risks he took was developing TrueGreen with the available resources, a practice often referred to as “bootstrapping” in the startup world. This approach carries the constant threat of depleting funds before reaching a break-even point. However, successfully accomplishing this has been a personal triumph, as it saved us the time and resources that would have otherwise been spent on seeking potential investors, negotiating deals, and restructuring the business. The current setup grants us substantial freedom to make decisions about the best path forward.
Vision for Environmental Preservation
Mogens thinks that addressing the critical issue of environmental preservation is undoubtedly the most significant task at hand. This entails a continued expansion of renewable energy sources. SCN’s technology, known internationally as “Virtual Power Plant,” “Demand Response,” “SmartGrid,” or “Ancillary Services,” is globally recognized as one of the fundamental components to ensure a consistent power supply and the efficient utilization of energy.
SCN is committed to enhancing the business case for renewable energy capacity development by actively supporting its utilization. This, in turn, strengthens the overall societal value of transitioning to renewable energy sources.
Written by Steve Sanchez.
