Evaluation of greenhouse gas emission reduction potential of a demand–response solution: a carbon handprint case study of a virtual power plant

Abstract

The transition towards zero-carbon energy production is necessary to limit global warming. Smart energy systems have facilitated the control of demand-side resources to maintain the stability of the power grid and to provide balancing power for increasing renewable energy production. Virtual power plants are examples of demand–response solutions, which may also enable greenhouse gas (GHG) emission reductions due to the lower need for fossil-based balancing energy in the grid and the increased share of renewables. The aim of this study is to show how potential GHG emission reductions can be assessed through the carbon handprint approach for a virtual power plant (VPP) in a grid balancing market in Finland. According to our results, VPP can reduce the hourly based GHG emissions in the studied Finnish grid systems compared with the balancing power without the VPP. Typical energy sources used for the balance power are hydropower and fossil fuels. The reduction potential of GHG emissions varies from 68% to 98% depending on the share of the used energy source for the power balancing, thus VPPs have the potential to significantly reduce GHG emissions of electricity production and hence help mitigate climate change.