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Incentives and barriers to flexible operations of industrial processes and district heating production to increase intermittent renewable electricity production – an interview study with involved actors

Panel: 5. Towards sustainable and resilient communities

This is a peer-reviewed paper.

Authors:
Maria Johansson, Linköping University, Sweden
Danica Djuric Ilic, Linköpings universitet, Sweden

Abstract

The Paris Agreement sets a framework to reach a goal of limiting the increase in global average temperature to well below 2°C above pre-industrial levels. Actions to reduce greenhouse emissions include increasing the share of renewable electricity production and improving energy efficiency.

However, this implies challenges related to the intermittent nature of wind and solar power. One way to enable an increased share of intermittent electricity production is to increase flexibility on the demand side. A district heating system that includes centrally controlled heat pumps and combined heat and power plants, together with load management of industrial processes, can provide a platform for an increased share of intermittent renewable power generation.

Previous studies have analysed technical potentials for flexible operations that can increase the share of intermittent renewable electricity production. However, the view of the actors involved has not been analysed. Therefore, the aim of the present study is to analyse the industry’s and the energy sector’s perceptions of the potentials and challenges related to flexible operations.

Actors from industry and energy companies in Sweden were interviewed to appraise and evaluate how they perceive the potentials and challenges regarding sector coupling and flexible operations. Challenges identified are trade-offs between balancing the electricity grid and cost-optimisation at company level, and that the strategy requires a smart control system and targeting regulations.

The results from the study can guide policymakers when formulating policies that can stimulate marketplaces for flexible operation that will enable an increased share of intermittent renewable electricity production and reduce the risk of power capacity shortages.

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