The International Renewable Energy Agency (IRENA) issued a report focusing on the challenges of decarbonization and energy transition, with the latter being linked to the increasing penetration of variable renewable energy along with an increase in the electrification of end-use sectors, both of which are key for long term decarbonization and the achievement of climate goals.
The study highlights that if decarbonization is not well planned this may lead to large shares of VRE together with the rapid expansion of electrification could affect the reliability of the power system.
Concerning decarbonization, IRENA published a booklet focusing on the progress of renewable energy in the future, which is expected to double by 2030 to advance the global energy transformation, achieve sustainable development goals and a pathway to climate safety.
Consequently, the increase in flexibility is crucial to mitigate potential mismatches in supply and demand induced by these changes.
Flexibility must be harnessed by both the supply side and the demand side, an approach that is referred to as demand-side flexibility.
A variety of sources of demand side flexibility if combined can result to innovative solutions, such as sector coupling (power-to-heat, power-to-gas and smart charging of electric vehicles) along with smart appliances in residential and commercial buildings and industrial demand response. These solutions can have different suitability depending on the end-use sector analyzed (industrial, commercial or residential).
The report presents six different use cases for demand-side flexibility based on different solutions and end-use sectors.
#1 Industrial demand response providing reserves
#2 Residential electric water heaters
#3 Demand-side flexibility through aggregators
#4 Electric vehicles with smart charging
#5 District heating systems
#6 Demand-side flexibility using hydrogen production (seasonal and short term)
Overall, the report came to three conclusions, addressing that demand-side flexibility fulfils important aims, such as:
1. It facilitates VRE integration by reshaping load profiles to match VRE generation;
2. It facilitates system-wide electrification by reducing peak load and managing seasonality;
3. It reduces production costs by shifting load from periods with high price of supply to periods with lower prices.
To facilitate the implementation process of these solutions and unlock the full potential of demand-side flexibility, a set of innovations should be considered
… IRENA concluded.
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