Both the companies will collaborate on RWE Smartpool to develop an advanced IT system for connecting a large number of distributed energy resources.

The firms will develop an advanced IT system to make easier to control the distribution of energy resources by connecting a large number of parties to the IT system including as generators, consumers and storage units.

RWE Deutschland CTO Dr. Joachim Schneider said: "Many innovative steps must be taken in order to successfully manage the energy transition to the new energy mix.

"By collaborating with Siemens, we will be able to significantly expand the benefits of new IT technology systems and thus provide customers and grid operators with efficient solutions for their business."

Siemens agreed to license its decentralized energy management system (DEMS) for the project which is based company’s scalable platform for smartgrid applications, EnergyIP.

Siemens Energy Management Division Digital Grid Business Unit CEO Thomas Zimmermann said: "With this technologically leading system, RWE will be well equipped to meet the challenges of an increasingly digitalised energy world."

Planned to be built as energy information and control system, the technology platform will be suitable for mass market and can handle multiple clients.

Siemens expects the RWE Smartpool to support the structuring between market participants and the grid in future based on the traffic light concept of the German Association of Energy and Water Industries (BDEW) industry association.

RWE Smartpool also allows public works and grid operators to market small amounts of locally generated electricity.