Flexibility market - earn money and balance the electricity grid
The energy market is undergoing significant changes and challenges. The green transition and increased electrification demand better balancing of electricity production and consumption. Flexibility is one of the solutions to address these challenges and contribute to a more sustainable energy market.
What is flexibility?
The flexibility market is about managing and utilizing the variations that occur in the demand and production of electricity. Traditional energy systems face challenges in balancing changes in load and production. Flexibility enables adaptation to these changes effectively. This means that companies and industries can adjust their energy consumption to take advantage of price differences and contribute to balancing the electricity grid. Why is flexibility important?
- Grid balancing: Flexibility provides an opportunity to reduce the load on the electricity grid during periods of high demand. This can prevent overload and enhance the operational reliability of the energy system.
- Sustainable benefits: Flexibility contributes to making electrification more sustainable.
- Economical benefits: Get compensation for participating in the flexibility market.
How does it work?
As a flexibility provider you to sell flexibility to entities in need of power or capacity. Typically, regional and local grid owners participate by bidding on a marketplace that allocates resources where needed. To engage in the flexibility market, one needs knowledge of energy consumption and access to data and analytical tools. DAZOQ EI can play a crucial role by providing real-time data and the ability to automate processes for optimizing energy usage. One of our clients, Hasopor AB, has already joined the flexibility market, thanks in part to DAZOQ EI. Let us share how Hasopor has approached this.
Hasopor entered the flexibility market
It all started when Daniel Ellison, CEO of Hasopor, read about companies that had joined the flexibility market. He was wondering whether this could be something for them, considering that Hasopor is such an energy-intensive company. An idea turned into a seed, and that seed turned into reality.
Thanks to already having DAZOQ EI, Hasopor could understand and clearly demonstrate to the electricity supplier how their factory behaves in terms of energy and how different components interact. It quickly became apparent that the furnaces, with their thyristor-controlled heating elements, were perfect candidates for connecting and participating in the flexibility market. The elements in the furnaces can be turned on and off very quickly, which is crucial for rapidly balancing the electricity grid.
A perfect example
This means that, with the help of information from DAZOQ EI, technology from Sympower, and electricity trading with their electricity supplier Bixia, Hasopor now has the ability to rapidly shut down their furnaces at the request of Svenska Kraftnät and Bixia to contribute to balancing the power grid. Their production process, which has a relatively large inertia, allows for shutdowns and restarts with minimal impact on the quality of their products. By monitoring temperature changes in the furnaces and adjusting the speed of the conveyor belts in the furnaces, they can minimize any potential negative effects on the material and production.
Since August, with the assistance of Bixia, Sympower, and DAZOQ EI, Hasopor has participated in Svenska Kraftnät's flexibility market, shutting down their furnaces six times. Each time, the number of furnaces shut down and the duration of the shutdown varied to meet the needs of the power grid. Not only has this been cost-neutral in terms of investment for Hasopor, as they operate through a profit-sharing model with their technology partner and electricity trading company, but it also generates significant financial revenue when offering their capacity on the flexibility market, whether utilized or not. It's a clear win-win situation! Additionally, they contribute to the responsibility of stabilizing the Swedish power grid for the benefit of other businesses and individuals who rely on a stable power supply in their operations and daily lives.
It feels good that we can contribute since we consume so much electricity. A bit like both Pippi Longstocking and Bamse say – those who are very strong must also be very kind – so I think that as a large consumer of electricity, we also need to be and take responsibility for the electricity grid.
The future for the flexibility market
The flexibility market is expected to grow as the transition to renewable energy accelerates. Being flexible with energy usage will be crucial to support a reliable and sustainable energy future. By embracing this flexibility, businesses can not only benefit from cost savings but also play an active role in creating a greener tomorrow. Want to learn more about how DAZOQ EI can contribute to the flexibility market? Get in contact with us today!