356 S. KILPELÄINEN ET AL.
not to mention their societal and environmental costs resulting from emissions (Toivanen et al. 2017, p. 154). Moreover, the transition to variable
renewable energy generation would benefit from institutional changes in
regulation, e.g. streamlining permitting procedures, better grid planning
and improved regulation guiding the planning process, as well as taxation
laws in the electricity sector (cf. Ruggiero et al. 2015).
Prior to the above-noted shift in the Finnish energy debate in the
mid-2010s, most observers expected the key technologies for the Finnish
case to relate to bioenergy, nuclear power and wind power, with solar
only playing a minor role (Valkila and Saari 2010, p. 2074). However,
studies have also shown that expert views on the role of solar power
are highly dependent on which stakeholder group the expert represents
(Haukkala 2018). Bold modelling studies for the Finnish energy system
up to 2050 probe a scenario for a solar PV share of up to 10% of
final energy consumption, arguing that the intermittency of solar (and
other renewable energy sources) can be addressed by means of daily and
seasonal storage solutions (Child et al. 2017; Child and Breyer 2016),
including hydro, heat storage, batteries, EVs, Power-to-Gas and other
storage solutions.
Given the strong interconnectedness of Finland with its neighbours
through the Nord Pool market, a wider Nordic focus is also necessary.
A recent energy system cost optimisation study shows a very limited role
for PV in the Nordic context even when the power system is close to
fully renewable (Kiviluoma et al. 2018). The seasonal nature of PV in
the high latitudes makes it valuable only during summer when demand
is lower. Wind power, for its part, generates more during winter and is
in general a less variable resource. In this scenario, the most valuable
flexibilities come from the heat sector and from increased transmission.
Pumped-hydroelectric storage in the best potential Norwegian locations
is close to break-even while batteries would need to be extremely low-cost
before being cost-effective. The interaction between wind power, PV and
batteries is further explored in a parametric study showing the high impact
of seasonality on the cost optimal share of PV (Kiviluoma et al. 2015).
However, the absence of sector coupling in that study makes the results at
best descriptive. Some of these flexibilities are being built—for example,
new transmission lines are planned (ENTSO-E 2018)—while reservoir
hydropower already exists and heat storage in district heating grids have
witnessed a renewed interest. For example, Helen, the Helsinki-based
not to mention their societal and environmental costs resulting from emissions (Toivanen et al. 2017, p. 154). Moreover, the transition to variable
renewable energy generation would benefit from institutional changes in
regulation, e.g. streamlining permitting procedures, better grid planning
and improved regulation guiding the planning process, as well as taxation
laws in the electricity sector (cf. Ruggiero et al. 2015).
Prior to the above-noted shift in the Finnish energy debate in the
mid-2010s, most observers expected the key technologies for the Finnish
case to relate to bioenergy, nuclear power and wind power, with solar
only playing a minor role (Valkila and Saari 2010, p. 2074). However,
studies have also shown that expert views on the role of solar power
are highly dependent on which stakeholder group the expert represents
(Haukkala 2018). Bold modelling studies for the Finnish energy system
up to 2050 probe a scenario for a solar PV share of up to 10% of
final energy consumption, arguing that the intermittency of solar (and
other renewable energy sources) can be addressed by means of daily and
seasonal storage solutions (Child et al. 2017; Child and Breyer 2016),
including hydro, heat storage, batteries, EVs, Power-to-Gas and other
storage solutions.
Given the strong interconnectedness of Finland with its neighbours
through the Nord Pool market, a wider Nordic focus is also necessary.
A recent energy system cost optimisation study shows a very limited role
for PV in the Nordic context even when the power system is close to
fully renewable (Kiviluoma et al. 2018). The seasonal nature of PV in
the high latitudes makes it valuable only during summer when demand
is lower. Wind power, for its part, generates more during winter and is
in general a less variable resource. In this scenario, the most valuable
flexibilities come from the heat sector and from increased transmission.
Pumped-hydroelectric storage in the best potential Norwegian locations
is close to break-even while batteries would need to be extremely low-cost
before being cost-effective. The interaction between wind power, PV and
batteries is further explored in a parametric study showing the high impact
of seasonality on the cost optimal share of PV (Kiviluoma et al. 2015).
However, the absence of sector coupling in that study makes the results at
best descriptive. Some of these flexibilities are being built—for example,
new transmission lines are planned (ENTSO-E 2018)—while reservoir
hydropower already exists and heat storage in district heating grids have
witnessed a renewed interest. For example, Helen, the Helsinki-based