14 RENEWABLE ENERGY IN FINLAND: FROM A PRODUCTION-CENTRIC …
365
While some forms of carbon-free energy storage already exist—most
notably, the water reservoirs of hydropower plants—further investment
in energy storages as a flexibility measure will be necessary. Given the
high heat demand in Finnish conditions, especially heat storage, will be
valuable in the short to medium term. In the longer run, the system
might need the ability to store electricity for example in gas molecules
that can then be flexibly converted to end products upon demand. The
need for purpose-built battery storage facilities is not, however, expected
to be large. The government’s 2016 Energy Strategy notes the potential
of various types of storage but stops short of providing a clear action plan
for developing energy storage. It does, however, propose R&D funding to
be targeted for demonstration and pilots involving new storage solutions,
while again putting the consumer at the centre of the energy vision—an
active consumer not only consumes energy, but also produces and stores
it. However, the strategy also recognises that probably most consumers
do not want to be particularly active. Instead, new service concepts could
manage all customer needs like energy supply, microgrid management and
electrical storages (Ministry of Economic Affairs and Employment 2017,
p. 77). Additionally, storage is framed as a tool for customers to influence
the electricity costs, enabling them to offer storage services to the market
(Ministry of Economic Affairs and Employment 2018).
The smart grid working group, in line with the government’s 2016
Energy Strategy, argues that given the neutral role of network companies as a facilitator of the market and given their monopoly unbundling
obligation, DSOs should not become providers of storage services. The
working group treats owning and using electricity storage as a competitive business activity ensuring that storage products and services develop
efficiently, customer-driven, and needs-based. Considering thus expressed
interests in developing markets and competition, network companies
should acquire storage services from the market (Ministry of Economic
Affairs and Employment 2018, p. 15).
This aligns with the view of the European Commission, which also sees
the development and operation of storage facilities as commercial activity
that should be performed by market parties, with TSOs and DSOs as
a rule barred from owning, managing or operating energy storage facilities. Instead of ownership, energy storage should be used based on market
procedures with the goal of ensuring efficient management of networks as
well as avoiding costly network expansions (European Commission 2017,
pp. 17–18). At the same time, the European Commission posits that
365
While some forms of carbon-free energy storage already exist—most
notably, the water reservoirs of hydropower plants—further investment
in energy storages as a flexibility measure will be necessary. Given the
high heat demand in Finnish conditions, especially heat storage, will be
valuable in the short to medium term. In the longer run, the system
might need the ability to store electricity for example in gas molecules
that can then be flexibly converted to end products upon demand. The
need for purpose-built battery storage facilities is not, however, expected
to be large. The government’s 2016 Energy Strategy notes the potential
of various types of storage but stops short of providing a clear action plan
for developing energy storage. It does, however, propose R&D funding to
be targeted for demonstration and pilots involving new storage solutions,
while again putting the consumer at the centre of the energy vision—an
active consumer not only consumes energy, but also produces and stores
it. However, the strategy also recognises that probably most consumers
do not want to be particularly active. Instead, new service concepts could
manage all customer needs like energy supply, microgrid management and
electrical storages (Ministry of Economic Affairs and Employment 2017,
p. 77). Additionally, storage is framed as a tool for customers to influence
the electricity costs, enabling them to offer storage services to the market
(Ministry of Economic Affairs and Employment 2018).
The smart grid working group, in line with the government’s 2016
Energy Strategy, argues that given the neutral role of network companies as a facilitator of the market and given their monopoly unbundling
obligation, DSOs should not become providers of storage services. The
working group treats owning and using electricity storage as a competitive business activity ensuring that storage products and services develop
efficiently, customer-driven, and needs-based. Considering thus expressed
interests in developing markets and competition, network companies
should acquire storage services from the market (Ministry of Economic
Affairs and Employment 2018, p. 15).
This aligns with the view of the European Commission, which also sees
the development and operation of storage facilities as commercial activity
that should be performed by market parties, with TSOs and DSOs as
a rule barred from owning, managing or operating energy storage facilities. Instead of ownership, energy storage should be used based on market
procedures with the goal of ensuring efficient management of networks as
well as avoiding costly network expansions (European Commission 2017,
pp. 17–18). At the same time, the European Commission posits that