Technical and regulatory requirements for energy technology participation in the Finnish electricity market

Abstract

The given thesis discusses the technical and regulatory aspects of the involvement of energy technologies in the Finnish electricity market with references to wind power, solar photovoltaic systems, battery energy storage systems, demand response, and the role of the aggregators and virtual power plants. The paper examines how the Finnish electricity market is structured, how the chosen technologies are able to participate in the market, and what the technical, regulatory, and reserve-market conditions are that influence the entry of technologies into the market. The findings indicate that participation is not only based on the presence of appropriate technologies, but also on the fact that they have the capability to fulfil detailed technical, regulatory, and market-specific demands. The battery energy storage systems and demand response are typically more appropriate in the reserve market and flexibility market, due to the rapid and controllable response, compared to the wind and solar power, which are more limited by variability and less controllable directly. The paper also reveals that aggregation can enhance the engagement of smaller and more distributed resources, but technical constraints, regulatory complexity, and compliance costs are also of relevance in practice.