Page 39 - European Energy Innovation - winter 2017 publication

Winter 2017 European Energy Innovation 39

COMMUNICATION

industRE

Increased grid Using the
integration of flexibility of
energy intensive
variable industries
renewable
energy sources

Advanced modelling shows that flexible industrial 6 6
demand could deliver significant savings for the
European power system. If 20% of industrial electricity Sectors Markets
demand was flexible, up to 2.5 billion euros per year
could be saved in an EU power system with 60% Chemicals > Steel > Non Ferrous Metals > Cold Storage Germany France Belgium UK Spain Italy
renewables. > Water treatment > Pulp and paper

KEY POLICY RECOMMENDATIONS BUSINESS MODELS have been identified: VRE =
Naturally, changes need to be made to the market Variable
design and policy framework to deliver all the Renewable
benefits industrial flexibility has to offer. There is still Energy
a lot of work to do in every single country to bring
all the benefits possible from flexible industrial I II III IV V
demand, especially as current market and regulatory Electricity Bill System Electricity Balancing Electricity
arrangements do not capture this complexity Service
sufficiently. Key policy recommendations include: Reduction Provider Supply Service Bill
Contract Contract Reduction
• Giving large consumers access to wholesale
electricity markets with off-site with off-site with on-site
VRE VRE VRE
• Opening up reserve capacity and balancing
markets to demand Use of the Providing services like Long-term bilateral Flexibility contract Avoided payment
industrial site frequency control, balancing electricity supply with a VRE of network and
• Ensuring that variable renewable energy generators flexibility in contract with a VRE other regulated
bear imbalance responsibility reaction to price services, capacity generator off-site to generator off-site to volumetric charges
mechanisms and load have predictable minimise imbalances,
• Harmonizing flexibility mechanisms across the EU signals possibly including in
interruptibility, conditions
• Abandoning net-metering policies and allowing or other ancillary services this contract the
self-consumption on-site. supply of electricity
to TSOs or
HOW CAN YOUR COMPANY BENEFIT? DSOs
Even in the current framework, industrial electricity
users can save on their electricity bills by using the 1 KEY AIM BY 2020 Practical Tools For Immediate Impact
IndustRE methodology and results. A new tool has
been developed – ProFlex – which can quantify how AVAILABLE TOOLS
much flexibility they have does an industrial user have
and what is that worth. All IndustRE results are Flexible + contract with + contract with
available to download on the website www.industRE.eu, demand only offsite VRE onsite VRE
where you can also find out how the project can
benefit your company. ● Energy Costs Supplier price Long-term Long-term
response electricity electricity
Savings
Market price supply supply
I response III V

Network ToU Volumetric tariff
and other network response
regulated costs
tariff V
System Services I
Revenues Bilateral
Balancing balancing
provision and IV provision
II other services

Are the MARKETS ready to work with these new innovative business models?

I II III IV V
Feasible and EU trend to allow Feasible but Not generally Could be
implemented participation of hypothetical possible due to attractive, but in some
in all target DR but in some because of the designs of countries savings in
countries tech or VRE support regulated charges
countries imbalance are eliminated or cut
legal barriers schemes settlement
remain arrangements down

POLICY RECOMMENDATIONS

Tariff Design >>>>>>>>> relates to barriers in....... I
- Large consumers should have direct access to wholesale electricity markets >>>>>>>>> relates to barriers in....... II
- Cost reflective network tariffs >>>>>>>>> relates to barriers in....... IV
>>>>>>>>> relates to barriers in....... V
Open Up All Markets >>>>>>>>> relates to all business models
- Open up reserve capacity and balancing markets to the participation of demand
- Make load interruptibility mechanisms competitive

Efficient Imbalancing Pricing
- VRE generators to bear imbalance responsibility
- Design efficient imbalance pricing system and allow aggregation

Allow Industrial Self-Consumption
- Abandon net-metering policies and allow self-generation for on-site VRE

EU Harmonisation
- Encourage the harmonisation of flexibility mechanisms across the EU

£

Harmonisation >> One step closer to Clean Energy For All

industRE

This project has received funding from the European Union’s Horizon www.industRE.eu
2020 research and innovation programme under grant agreement No 646191

www.europeanenergyinnovation.eu