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

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. Forces disrupting the energy
sector
• Climate change
• New and
evolving
technologies
• Digitalization

4. Fossil
fuels
need to
be
phased
out

5. 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

6. 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

7. North Frisia showing the way

8. In the clean
energy system
the wind and
solar power
generation
exceeds the
typical electricity
demand curve

9. 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

10. 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

11. • 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

12. 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

13. 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

14. It is cheaper
to store
heat than
electricity
Energy storage prices

15. 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/

16. Helsinki taking steps towards cleaner
future

17. Is renewable energy competitive
against fossil fuels?
Renewables are
becoming cheaper
than fossil fuels

18. Good news: ETS prices getting higher
•

19. 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

20. 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

21. “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?”

22. 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

23. 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