352 S. KILPELÄINEN ET AL.
parks are typically not very large and are dispersed in various regions, even
though wind power is usually connected to a high voltage “centralised”
grid. At the same time, wind power, as well as solar power in the high
latitudes, must rely on other resources within the remit of the power grid
to cost-efficiently smoothen their variability. Therefore, the power grid is
likely to be strengthened to better accommodate both a higher share of
renewables and electrification (ENTSO-E 2018).
These trends emerge within a centralised structure of the system, since
several large-scale nuclear and hydropower plants will continue to be
part of the Finnish system well beyond the 2050s, most likely alongside the large pulp and paper mills, or “bio-product” factories where
biomass-based energy is a side-product. The decentralising trends are
interesting given how the country’s energy system was originally heavily
shaped by the demand from large units in the forestry, chemical and
metal sectors and respective electrification processes (Myllyntaus 1990).
Electricity distribution grids were devised to be one-way roads towards
consumption. With increasing solar PV generation and demand-side flexibility, this is not sufficient. Communication and control of these grids
is being enhanced to cope with the new modes of operation. Concurrently, electrification increases the utilization of distribution grids and may
require costly upgrades.
Third, the variability of renewable energy generation decreases its
value to the energy system as its share increases. Large-scale wind power
generation can vary tens of percentage points over a period of hours
(Kiviluoma et al. 2016). Solar power production in Finnish latitudes
has a profound seasonal variation and a fast up-ramp in mornings and
down-ramp in evenings. The Nordic power system is highly flexible due
to a large share of reservoir hydropower (almost 50% of generation). This
flexibility helps to maintain the value of variable generation even at high
shares. However, additional flexibility can be cost-efficient and is the key
to very high levels of variable renewable energy generation. Accordingly,
the electrification of energy presupposes various means of increasing flexibility in the system. For example, heat storage provides a less expensive
option compared to storing electricity. Moreover, the smart charging
of EVs could help to accommodate higher shares of variable renewable
energy in a cost-efficient manner (Kiviluoma et al. 2018). Concurrently,
peaks in electricity consumption continually become sharper (Energiateollisuus 2019). Peaks are typically reached on cold winter days when
the consumption in residential housing is high due to electric resistance
parks are typically not very large and are dispersed in various regions, even
though wind power is usually connected to a high voltage “centralised”
grid. At the same time, wind power, as well as solar power in the high
latitudes, must rely on other resources within the remit of the power grid
to cost-efficiently smoothen their variability. Therefore, the power grid is
likely to be strengthened to better accommodate both a higher share of
renewables and electrification (ENTSO-E 2018).
These trends emerge within a centralised structure of the system, since
several large-scale nuclear and hydropower plants will continue to be
part of the Finnish system well beyond the 2050s, most likely alongside the large pulp and paper mills, or “bio-product” factories where
biomass-based energy is a side-product. The decentralising trends are
interesting given how the country’s energy system was originally heavily
shaped by the demand from large units in the forestry, chemical and
metal sectors and respective electrification processes (Myllyntaus 1990).
Electricity distribution grids were devised to be one-way roads towards
consumption. With increasing solar PV generation and demand-side flexibility, this is not sufficient. Communication and control of these grids
is being enhanced to cope with the new modes of operation. Concurrently, electrification increases the utilization of distribution grids and may
require costly upgrades.
Third, the variability of renewable energy generation decreases its
value to the energy system as its share increases. Large-scale wind power
generation can vary tens of percentage points over a period of hours
(Kiviluoma et al. 2016). Solar power production in Finnish latitudes
has a profound seasonal variation and a fast up-ramp in mornings and
down-ramp in evenings. The Nordic power system is highly flexible due
to a large share of reservoir hydropower (almost 50% of generation). This
flexibility helps to maintain the value of variable generation even at high
shares. However, additional flexibility can be cost-efficient and is the key
to very high levels of variable renewable energy generation. Accordingly,
the electrification of energy presupposes various means of increasing flexibility in the system. For example, heat storage provides a less expensive
option compared to storing electricity. Moreover, the smart charging
of EVs could help to accommodate higher shares of variable renewable
energy in a cost-efficient manner (Kiviluoma et al. 2018). Concurrently,
peaks in electricity consumption continually become sharper (Energiateollisuus 2019). Peaks are typically reached on cold winter days when
the consumption in residential housing is high due to electric resistance