Flexibility from industrial demand-side management in net-zero sector-coupled national energy systems

Abstract

National energy systems require flexibility to accommodate increasing amounts of variable renewable energy. This flexibility can be provided by demand-side management (DSM) from industry. However, the flexibility potential depends on the characteristics of each industrial process. The enormous diversity of industrial processes makes it challenging to evaluate the total flexibility provision from industry to sector-coupled energy systems. In this work, we quantify the maximum cost reductions due to industrial DSM in the net-zero sector-coupled Swiss energy system, and the relationship between cost reductions and various industrial process characteristics. We analyze the flexibility of industrial processes using a generic, process-agnostic model. Our results show that industrial DSM can reduce total energy system costs by up to 4.4%, corresponding to 20% of industry-related energy costs. The value of flexibility from industrial DSM depends not only on the process characteristics but also on the system’s flexibility alternatives, particularly for flexibility over seasonal time horizons. As one specific option for industrial DSM, we find that thermal energy storage (TES) technologies available today could realize between 28% and 61% of the maximum cost reductions from industrial DSM, making TES a promising DSM solution and showing that industrial DSM is an accessible and cost-effective flexibility option.