Synergies between Renewable Energy and Flexibility Investments: A Case of a Medium-Sized Industry

Abstract

Climate and energy policies are tools used to steer the development of a sustainable economy supplied by equally sustainable energy systems. End-users should plan their investments accounting for future policies, such as incentives for system-oriented consumption, emission prices and hydrogen economy, to ensure long-term competitiveness. In this work, the utilization of variable renewable energy and flexibility potentials in a case study of an aggregate industry is investigated. An energy concept considering PV and battery expansion, flexible production, fuel cell electric trucks (FCEV) and hydrogen production is proposed, and analysed under expected techno-economic conditions and policies of 2030 using an energy system optimization model. Under this concept, total costs and emissions are reduced by 14% and 70%, respectively, compared to the business-as-usual system. The main benefit of PV investment is the lowered electricity procurement. Flexibility from schedulable manufacturing and hydrogen production increases not only the self-consumption of PV generation from 51% to 80% but also the optimal PV capacity by 41%. Despite the expected cost reduction and efficiency improvement, FCEV is still not competitive to diesel trucks due to higher investment and fuel prices, i.e., its adoption increases the costs by 8%. However, this is resolved when hydrogen can be produced from own surplus electricity generation. Our findings reveal synergistic effects between different potentials and the importance of enabling local business models, e.g., regional hydrogen production and storage services. The SWOT analysis of the proposed concept shows that the pursuit of sustainability via new technologies entails new opportunities and risks. Lastly, end-users and policymakers are advised to plan their investments and supports towards integration of multiple application, consumption sectors and infrastructure.

Integrating Renewable Energy Solutions in the Manufacturing Industry: Challenges and Opportunities: A Review

“…The authors call for accelerated policy support, technology R&D, and scale application to drive the marine renewable energy industry towards industrialization. Wanapinit and Thomsen (2021) investigate the synergies between renewable energy and flexibility investments in the manufacturing industry. Their case study proposes an energy concept that includes photovoltaic (PV) and battery expansion, flexible production, and hydrogen production, demonstrating a reduction in total costs and emissions by 14% and 70%, respectively.…”

“…The study also highlighted the potential for further emissions reduction through the employment of thermal energy storage, emphasizing the economic and environmental benefits of integrating renewable energy sources in industrial settings (Taqui, Almansoori, & Elkamel, 2021). Wanapinit and Thomsen (2021) investigated the synergies between renewable energy and flexibility investments in a medium-sized industry. Their study proposed an energy concept that included photovoltaic (PV) and battery expansion, flexible production, fuel cell electric trucks (FCEV), and hydrogen production.…”

“…The research underscored the importance of PV investment for lowering electricity procurement costs and demonstrated how flexibility from scheduled manufacturing and hydrogen production could significantly enhance the self-consumption of PV generation. This case study exemplifies the multifaceted benefits of renewable energy integration, including cost savings, emissions reduction, and increased energy self-sufficiency (Wanapinit & Thomsen, 2021). Zharan and Bongaerts (2017) focused on the decision-making processes involved in integrating renewable energy technologies in the mining industry.…”

The Business Model of an Emerging Hydrogen Market in the Swedish Transportation Sector – outlook towards 2050

“…The research on the economic dimensions of business models along the value chain for using hydrogen in transport is growing. Earlier studies have focused on techno-economic factors and how to achieve a profitable renewable hydrogen investment business case [2][3][4][5][6][7][8][9][10][11][12][13][14]. There are case studies using European settings, e.g., [3,8,10,14] set on German market conditions, [4,12] in an Austrian context, [7] in Ireland, [9] in France and [2] in a Danish setting.…”

“…Earlier studies have focused on techno-economic factors and how to achieve a profitable renewable hydrogen investment business case [2][3][4][5][6][7][8][9][10][11][12][13][14]. There are case studies using European settings, e.g., [3,8,10,14] set on German market conditions, [4,12] in an Austrian context, [7] in Ireland, [9] in France and [2] in a Danish setting. Other studies have a geographical scope outside of the EU e.g., [5] in Canada and [11] in China.…”