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Energy system needs to change

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Presentation: Energy system needs to change - but how? at Wind Finland seminar 10 Oct 2018 by Karoliina Auvinen, Aalto University / Smart Energy Transition project

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Energy system needs to change

  1. 1. Energy system needs to change - but how? Wind Finland | 10.10.2018 | Nuuksio, Finland Stakeholder Relations Director and Researcher Karoliina Auvinen Smart Energy Transition project, Aalto University
  2. 2. Forces disrupting the energy sector • Climate change • New and evolving technologies • Digitalization
  3. 3. Fossil fuels need to be phased out
  4. 4. Clean electrification is the key • Electricity can be produced with wind and solar power • Clean electrification is the main solution to reduce greenhouse gas emissions in industry, transport, heating and cooling sectors
  5. 5. How to achieve the coal phase out? • Ongoing trend: coal is replaced by biomass, peat and gas • Risk: technology lock-in • What is needed to achieve Paris Climate Agreement? • The whole energy system needs to be renovated • Stop the burning
  6. 6. North Frisia showing the way
  7. 7. In the clean energy system the wind and solar power generation exceeds the typical electricity demand curve
  8. 8. Energy companies, that produced over 500 GWh of the district heating / CHP with coal or peat in 2016 - “main polluters” District heat producer City Coal, GWh Peat, GWh Helen Oy Helsinki 6 895 Turun Seudun Energiantuotanto Oy Turku 2 808 Fortum Power and Heat Oy Espoo 2 008 Vantaan Energia Oy Vantaa 1 199 Oulun Energia Oy Oulu 1 137 Lahti Energia Oy Lahti 1 090 Kuopion Energia Oy Kuopio 2 649 Jyväskylän Voima Oy Jyväskylä 18 625 Tampereen Sähkölaitos Tampere 628
  9. 9. Clean district heating & cooling network concept Solar heat collectors Electrical storage Wind turbines District heating network, temperature approx. 65 oC Industrial heat pumpOld residential buildings with solar PV, EVs, heat pumps and hot water storage tanks New residential buildings with solar PV and EVsOffice buildings, data centers etc. with solar PV, EVs and heat pumps Flexible bio CHP (back-up power) District cooling network Seasonal heat storage School building with solar PV
  10. 10. • Heating and cooling produced mostly by industrial and large buildings’ heat pumps using 20-35% electricity, that can be produced by clean energy sources like wind, solar, hydro and nuclear power. Heat pumps collect the rest of the energy from the underground, lake, sea, air and different waste heat sources such as wastewater, data centers, industrial processes etc. • Assisting heat energy source: solar heat collectors • Backup generation for the cold winter periods: flexible bio-CHP Energy production
  11. 11. How to manage variable production? • Core of the system: seasonal heat storages • Loaded during peak wind and/or solar power production periods and always when electricity prices are low • Loaded with solar heat collectors • Discharged during peak heat and electricity demand times • When constructed to city suburbs and building blocks, they can offer significant backup potential • Needed for short term adjusting power: • electricity and heating demand response automation • electric batteries and • flexible bio-CHP for peak demand
  12. 12. Electricity spot prices in Nordpool 15.5. - 22.5.2018: variation between 6,6 - 249 €/MWh (0,6 - 24,9 snt/kWh) Storing electricity to heat storages Saving electricity with demand response automation
  13. 13. It is cheaper to store heat than electricity Energy storage prices
  14. 14. District heating with high temperature heat pump in Drammen, Norway • 63 000 inhabitants • total 45 MW peak district heating network • 13 MW heat pump • 30 MW gas fired boiler (back-up for the peak duties) • 8 MW biomass boiler • heat pump covers 85% of the district heating demand REFERENCE / SOURCE: http://www.ehpa.org/homepage/?eID=dam_frontend_push&docID=3104 ; http://www.ehpa.org/technology/best-practices/large-heat-pumps/drammen-district-heating-norway/
  15. 15. Helsinki taking steps towards cleaner future
  16. 16. Is renewable energy competitive against fossil fuels? Renewables are becoming cheaper than fossil fuels
  17. 17. Good news: ETS prices getting higher •
  18. 18. Market failure • Renewables would be very competitive, if market prices would reflect the external costs of greenhouse gas emissions: • Carbon price should be 42-85 eur/tCO2 by 2030
  19. 19. Finnish Transition Arena’s policy recommendations • Carbon floor price to ETS • If this doesn’t work, then clean energy subsidies are needed • Opening the district heating and cooling markets for clean energy and demand response solutions • Separation of large district networks operation from the production business • Hourly pricing • Testing and piloting new technologies, system solutions and market models
  20. 20. “Finland can profit from the ongoing energy disruption by actively participating in the development of new market, technology and service solutions” Smart Energy Transition project: “How can Finland benefit from the decarbonization of the energy system?”
  21. 21. Components Construction and project development Electricity production and sales Electricity storageSmart energy services Financing Consulting Examples of Finnish companies in wind energy value chain O&M
  22. 22. More information: More about clean district heating and cooling vision: https://www.slideshare.net/SmartEnergyTransition/clean-energy-district-heating-and- cooling-vision-92978320 Stakeholder relations director, researcher, M.Sc. (Tech.) Karoliina Auvinen karoliina.auvinen@aalto.fi, +358 50 4624727 @karoliinauvinen Senior scientist, D.Sc. (Tech.) Francesco Reda francesco.reda@vtt.fi, +358 40 8403680 @frFrancescoReda www.smartenergytransition.fi

Presentation: Energy system needs to change - but how? at Wind Finland seminar 10 Oct 2018 by Karoliina Auvinen, Aalto University / Smart Energy Transition project

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