Energy Transition Implications for Demand and Supply of Power System Flexibility: A Case Study of the Netherlands Within an EU Electricity Market and Trading Context

Abstract

The Netherlands is aiming for a more sustainable, low-carbon energy system. For the power system, this energy transition implies (1) a larger share of electricity from variable renewable energy (VRE), in particular from sun and wind; (2) a larger share of electricity in total energy use, i.e. a higher rate of electrification of the energy system by means of electric vehicles, heat pumps, power-to-products, etc.; and-as a result of these two trends-(3) a higher need for flexibility and system integration. This chapter analyses the implications of the Dutch energy transition for the integration and flexibility needs of the Dutch power system within an EU electricity market and trading context. In particular, by means of the EU28+ electricity market model COMPETES, we assess the potential of EU power trading as one of the options to meet these needs besides other domestic flexibility options such as flexible power generation, VRE curtailment, demand response and energy storage. The modelling results show that the flexible power trade potential is rather substantial-and even dominant-depending on the level of interconnection capacity and market integration across EU member states. In addition, we briefly discuss complementary results by means of the NL energy system model OPERA, notably on demand response as a potentially large domestic flexibility option. © Springer Nature Switzerland AG 2019.