Electricity cannot be stored in large quantities and therefore the electricity market urgently needs flexibility in order to balance price fluctuations.
Customers should participate in the electricity market
The energy transition and digitalization create new opportunities for customers to participate in the electricity market. With the growth of intermittent electricity production, a lot of demand response is needed in the electricity market in order to keep the electricity system balanced and reliable. Demand response can also reduce the need to build a grid that can withstand very large and exceptional consumption peaks, which in turn can lower grid costs.
The number of electricity producers will multiply
The production of renewable electricity and energy self-sufficiency is strengthened by promoting energy communities in which own electricity production is distributed among the members of the community.
As decentralized electricity generation increases, the impacts on the distribution grid must also be taken into account. For example, on sunny summer days, solar power panels produce more electricity than the owners consume. Electricity fed into the network may cause voltage problems, and the distribution grid company must ensure that the technical requirements set for the electricity system are fulfilled.
An alternative to a traditional grid investment is to invest in an electricity storage that stores surplus electricity during the day and then supplies the electricity to customers later. The cost of the electricity storage may be lower than that of direct grid investments. Unfortunately, the distribution grid does not currently have enough incentives to invest in smart, customer-friendly, cost-effective solutions.
