Electrification and Interconnections for Flexibility: A Comparative Analysis

With expected future penetration of variable renewable energies (VREs) arises the question of how to optimize the utilization of large shares of cheap energy resources while providing sufficient flexibility. This study explores the benefits for Denmark of encouraging flexibility through energy systems coupling and the electrification of Danish district heating system, as compared to a strategy where Denmark mainly relies on its interconnections to balance the demand and supply. Using a partial equilibrium modelling tool representing the heat and electricity sector, the study compares the impacts of both scenarios at the horizon 2050, and assesses their distributional effects in terms of energy technology shift; electricity spot prices; system cost; electricity exchange balance and total CO2 emissions.