System-level flexibility resources in a decarbonized Finnish energy system : demand and availability
Sihvonen, Ville (2025-05-23)
Väitöskirja
23.05.2025
Lappeenranta-Lahti University of Technology LUT
Acta Universitatis Lappeenrantaensis
School of Energy Systems
School of Energy Systems, Sähkötekniikka
Kaikki oikeudet pidätetään.
In reference to IEEE copyrighted material which is used with permission in this thesis, the IEEE does not endorse any of Lappeenranta-Lahti University of Technology LUT's products or services. Internal or personal use of this material is permitted. If interested in reprinting/republishing IEEE copyrighted material for advertising or promotional purposes or for creating new collective works for resale or redistribution, please go to http://www.ieee.org/publications_ standards/publications/rights/rights_link.html to learn how to obtain a License from RightsLink.
In reference to IEEE copyrighted material which is used with permission in this thesis, the IEEE does not endorse any of Lappeenranta-Lahti University of Technology LUT's products or services. Internal or personal use of this material is permitted. If interested in reprinting/republishing IEEE copyrighted material for advertising or promotional purposes or for creating new collective works for resale or redistribution, please go to http://www.ieee.org/publications_ standards/publications/rights/rights_link.html to learn how to obtain a License from RightsLink.
Julkaisun pysyvä osoite on
https://urn.fi/URN:ISBN:978-952-412-237-5
https://urn.fi/URN:ISBN:978-952-412-237-5
Tiivistelmä
The significant increase in variable renewable energy production that follows from the aim of achieving the climate targets leads to new challenges for the energy system. The energy system will require new solutions, such as added flexibility to cope with the increasing variability and uncertainty of energy production. Flexibility is required of the energy system on different timescales for balancing consumption and production of energy. This doctoral dissertation seeks to determine the need for flexibility in the Finnish energy system and study the role of different system-level flexibility resources in it. Particularly, different energy storage solutions and sector coupling are investigated as potential tools for unlocking pathways toward enabling a decarbonized Finnish energy system.
In the study, through stakeholder interactions, literature reviews, scenario modeling, and simulations, the future demand for flexibility and the available resources in Finland were surveyed. Various flexibility resources were found to be essential, but most notably, different energy storage solutions were recognized to be necessary to balance renewable energy production and to relieve the effects of increased volatility of electricity price volatility. In addition to storing energy, different ancillary services provided by these energy storage solutions are vital, such as fast-responding frequency regulation, where, e.g., batteries excel. Furthermore, the electrification of district heating was considered to have great potential to enable cross-sectoral energy storage, enabling the balancing of both power and heat production. However, this dissertation recognized challenges for procuring this required flexibility capacity. The high present upfront investment cost combined with limited viable business cases is one of the most likely barriers to the nearfuture deployment of these large system-level resources. Further challenges may also be presented by the identified risk of cannibalization of business as the capacity of these resources increases in the energy system.
In conclusion, different flexible resources are crucial to support the energy system in achieving ambitious climate targets. Future research should be aimed at investigating valid business models and cases that procuring this flexibility requires. Seasonal storage and power-to-fuel solutions in particular are in a challenging situation, as these solutions are likely to need new mechanisms to secure their capacity, such as capacity-based remuneration.
In the study, through stakeholder interactions, literature reviews, scenario modeling, and simulations, the future demand for flexibility and the available resources in Finland were surveyed. Various flexibility resources were found to be essential, but most notably, different energy storage solutions were recognized to be necessary to balance renewable energy production and to relieve the effects of increased volatility of electricity price volatility. In addition to storing energy, different ancillary services provided by these energy storage solutions are vital, such as fast-responding frequency regulation, where, e.g., batteries excel. Furthermore, the electrification of district heating was considered to have great potential to enable cross-sectoral energy storage, enabling the balancing of both power and heat production. However, this dissertation recognized challenges for procuring this required flexibility capacity. The high present upfront investment cost combined with limited viable business cases is one of the most likely barriers to the nearfuture deployment of these large system-level resources. Further challenges may also be presented by the identified risk of cannibalization of business as the capacity of these resources increases in the energy system.
In conclusion, different flexible resources are crucial to support the energy system in achieving ambitious climate targets. Future research should be aimed at investigating valid business models and cases that procuring this flexibility requires. Seasonal storage and power-to-fuel solutions in particular are in a challenging situation, as these solutions are likely to need new mechanisms to secure their capacity, such as capacity-based remuneration.
Kokoelmat
- Väitöskirjat [1110]