Exploring Flexibility Potential of Energy-Intensive Industries in Energy Markets

Abstract

The European Union, in pursuit of the goal of reducing emissions by at least 55% by 2030 and achieving climate neutrality by 2050, is deploying different actions, with industry decarbonization as a key strategy. However, increasing electricity demand requires an intensification of energy generation from clean technologies, and the energy system’s expansion is hindered by renewable generation’s climatic dependencies and the imperative for substantial electrical infrastructure investments. Although the transmission grid is expected to grow, flexibility mechanisms and innovative technologies need to be applied to avoid an overwhelming growth. In this context, this paper presents a thorough assessment, conducted within the FLEXINDUSTRIES project, of the flexibility potential across seven energy-intensive industries (automotive industry, biofuel production, polymer manufacturing, steel manufacturing, paper mills, pharmaceutical industry, and cement production). The methodology followed during the analysis entails reviewing the state-of-the-art existing flexibility mechanisms, industries’ energy markets engagement, and technical/operational readiness. The results highlight the feasibility of the proposed actions for enabling energy market flexibility through demand-response programs, quantifying energy opportunities, and pinpointing regulatory and technical barriers.

Keywords

• flexibility
• renewable energy sources
• energy consumption
• electricity market
• decarbonization
• smart technological solutions