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Innovative business models making use of the flexibility of the industrial electricity demand for integrating wind energy

T. Maidonis, M. Papapetrou, P. Frías, M. Vallés, F. Nuño, T. Jezdinsky

Wind energy has some drawbacks for its integration in power systems and markets like variability, restricted predictability and firmness that impose extra requirements and costs. The flexibility of the industrial electricity demand has been identified as a potential that - through innovative business models - can facilitate the integration of variable renewable energy, while reducing electricity costs for the industry. As a starting point, this paper provides a basic outline of the different possible business models for supplying variable renewable electricity to industrial users with a potential for flexibility in their demand. It then assesses how the current market and regulatory framework affects the models’ applicability in the industrial sector of Belgium, France, Germany, Italy, Spain and the UK.

Keywords: Variable renewable energy (VRE), flexible industrial demand (FID), wind energy, grid integration, flexibility, industry, cost of electricity

Published: October 2015.

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