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project info
Start date: 1 January 2024
End date: 31 December 2025
funding
Fund: Just Transition Fund (JTF)
Total budget: 162 602,00 €
EU contribution: 113 821,00 € (70%)
programme
Programming period: 2021-2027
European Commission Topic
European Commission Topic

Promotion of Business Solutions on Demand Response in Ostrobothnia

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 on a yearly and daily basis. Therefore, the demand flexibility of households will have a greater impact on the operation of the electricity grid 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. At the beginning of the project, we will compile a comprehensive list of target-group companies in Ostrobothnia. Five of those will be selected to participate in the steering group of the project. The steering group will meet two times per year, once in the autumn and once in the spring. The group will architect two seminars, out of which the first one will yield knowledge on demand flexibility and on the related possibilities to small-size electrical energy users. The seminar will distribute knowledge gained by the project workers during and before the project, focusing on the economic and technical gaining possibilities related with demand flexibility. On the seminar, we will discuss, e.g., aspects related to resignation of peat production and the possibilities related to this, in terms of solar energy fields etc. The project will examine the growth potential of demand response among small consumers in Ostrobothnia. The survey will be implemented (i) by discussions and questionnaires during the seminars, (ii) by company visits, including investigations on the possibilities of the companies to gain from demand flexibility, and (iii) by using questionnaires sent to companies by e-mail, and by analysing the answers afterwards. The project will survey the existing demand response solutions and services available on the market. 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 as a tool for presenting 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. The know-how gained during the project will be distributed to the companies of the target group in the second seminar, at the end of the project. The project report will be finalised after the second seminar, and this report will be sent to the companies of the target group by e-mail. The project will affect the small-size electrical energy users of Ostrobothnia so that they will be able to gain from demand flexibility significantly more than today. Further, the knowledge on demand flexibility will be clearly higher than that before the project. The companies will become more motivated to gaining demand flexibility as an integral part of their business.

Flag of Finland  Ostrobothnia, Finland