Demand response - Promoting electricity demand response management in Ostrobothnia
Period: 7.8.2024 - 31.12.2025
Content:
In Finland, the industrial sector consumes more electricity annually than households and agriculture. However, from a power perspective, households and agriculture are a larger burden on the electricity grid than the industrial sector because their electricity consumption varies more yearly and daily. Therefore, the demand flexibility of households will have a greater impact on the electricity grid operation than the annual energy consumption alone would suggest.
To achieve the goal of halving the use of peat in energy production by 2030 and reaching Finland's 2035 carbon neutrality target, significant increases in weather-dependent energy production are necessary. However, the electricity grid cannot handle the growing share of weather-dependent energy production without significant increases in flexible capacity. Demand response is an environmentally friendly and cost-effective way to provide flexibility to the electricity grid. Although demand response is technically mature, it has not yet become widespread among electricity users.
The aim of this project is to promote the adoption of commercial demand response solutions among electricity users in Ostrobothnia. In the context of this project, electricity users refer to all users with low-voltage connections under 100 A, including businesses, communities, and private households. This limitation is due to the fact that large consumers already find it easy to justify potentially significant investments. On the other hand, small users may be more hesitant to accept investments that yield savings by following market prices for electricity consumption.
The project will examine the growth potential of demand response among small consumers in Ostrobothnia. It will survey the existing demand response solutions and services available, best practices for demand response will be developed within the project. Business models for demand response will also be developed. Demand response demonstrations will be implemented at Technobothnia, and pilots will be conducted with selected electricity users. The demonstrations and pilots will explore the possibilities of existing demand response solutions and enhance the expertise of the project organizations. The demos will also serve to present the project's objectives and results to stakeholders such as electricity grid companies, electrical contracting companies, and consumer organizations. The demos will be further utilized in Technobothnia's engineering education and in collaboration with businesses.
The project will increase the business potential of demand response in Ostrobothnia. The project's results will be disseminated to electricity users through companies involved in electrical installations, electricity grid companies, companies offering demand response solutions, and organizations representing consumers.
Focus area: Hållbar energiteknik
Campus: Vasa Wolffskavägen 33
Rahoittajat: Europeiska regionala utvecklingsfonden (ERUF) 2021-2027
Project owner: Vasa Yrkeshögskola
Project manager: Johan Westö
Yhteystyökummpanit: Vasa yrkeshögskola, Oy Merinova Ab