The key to a functioning electricity system – better and more collaboration

By 2035, Sweden's electricity demand could be twice what it is today. Going from 140 TWh today to 280 TWh will require more of everything - more power generation, more energy storage, more flexibility and, last but not least, more cooperation between the players in the electricity system.

"At the moment, the media and public debate paint a rather gloomy picture of the future, but the truth is that Sweden has one of the best electricity grids in the world. What's more, we are in a position where we have all the technical solutions needed to achieve environmentally friendly energy production," says Henrik Svenningstorp, Head of Strategic Research in Energy and Electrification at RISE, and continues: 

"I also think we need to get away from talking about electricity or energy shortages. We don't have an energy problem on this planet, which is radiating far more energy than we need. However, we do have an energy collection, storage and transmission problem, and to reduce the future challenges of the electricity system, we need to tackle the problem from that angle."

Great potential for heat storage

Henrik Svenningstorp advocates an electricity system with many more small power generation units than today, which can be combined with local storage solutions. This creates robustness and increased resilience.

"We will still need the large generating units that provide predictable energy, but even in a future where we maximise nuclear, there will be more wind than nuclear in the mix. In other words, we will have a lot of intermittent energy that needs to be managed," he says.

One untapped opportunity is heat storage. Every year, about 55 TWh of energy is used to heat water and air. When heat is the end product, energy storage can be something as simple as a large thermos flask, for example in the form of storage tanks connected to the district heating network. But even without thermal storage, more district heating plants could use electricity to heat water when electricity is cheap and needs to be used. When electricity is expensive, there is a shortage of electricity and the grid needs to be relieved, the switch is made to regular incineration of, for example, household waste.

"I think this kind of holistic view, where the district heating network can work with the electricity network owners, is key. Another key factor is to look at the metrics and KPIs that the electricity network operators are working towards. If the business model promotes cooperation and maximises the benefits for AB Sweden, then I think we have a lot of low-hanging fruit to pick", says Henrik Svenningstorp.

Visualise to realise

To convince all parties of the potential of working together across energy types and storage methods, good examples need to be highlighted. RISE has the expertise to create small-scale visualisations and calculate the impact of larger scale implementation.

"What happens if a municipal electricity network company takes advantage of heat storage and flexibility in its electricity consumption through an existing district heating network? How does this affect the electricity network company's planned expansion of the electricity network? RISE can help answer such questions," says Henrik Svenningstorp.

Will legislative changes be needed to improve cooperation between the various players in the electricity system?

"The best regulatory mechanisms are those that never need to be changed, but are always relevant. Imagine if we could formulate the rules in such a way that it becomes natural to think in terms of heat storage, battery storage or electrochemical fuels, even if it is another municipal or private company that is responsible for the cogeneration plant and others for other possible energy storage," Henrik Svenningstorp continues:

Since the 1980s, a Swedish bank has aimed to be five per cent better than its competitors, a goal that has remained relevant through all economic cycles. We need something similar for the energy sector.

Better cooperation makes Sweden a better exporter

Strong cooperation between Svenska Kraftnät, power grid companies, producers, industry and municipalities is making Sweden a more attractive player in the European electricity market - better equipped to meet growing demand from countries that are switching from Russian gas to electricity to secure their heating in line with REPowerEU, the EU's plan to accelerate the transition from fossil fuels to green energy. Sweden is also important as an electricity exporter in the context of the Net Zero Industry Act, which aims to make the EU less dependent on China and the US in the development of green industries.

"As our electricity grids are interconnected, we cannot just look at Sweden, we need a workable solution for the whole of Europe. Cooperation is very important from both a Swedish and a European perspective," says Henrik Svenningstorp.