How flexible electrification can integrate fluctuating renewables

TL;DR

This paper demonstrates that flexible electrification, especially in heating, transport, and industry, significantly enhances renewable energy integration by reducing peak loads, excess generation, and reliance on storage and backup plants.

Contribution

It introduces a cost-minimizing model showing how flexible demand and electrolyzers can substantially improve renewable integration, with detailed case study results for Germany.

Findings

Flexible demand halves residual peak-load and excess generation.

Electrolyzers contribute to 42% of peak-load reduction.

District heating and BEVs provide significant flexibility.

Abstract

To phase-out fossil fuels, energy systems must shift to renewable electricity as the main source of primary energy. In this paper, we analyze how electrification can support the integration of fluctuating renewables, like wind and PV, and mitigate the need for storage and thermal backup plants. Using a cost minimizing model for system planning, we find substantial benefits of electricity demand in heating, transport, and industry adapting to supply. In Germany, flexible demand halves the residual peak-load and the residual demand and reduces excess generation by 80%. Flexible operation of electrolyzers has the most significant impact accounting for 42% of the reduction in residual peak-load and 59% in residual demand. District heating networks and BEVs also provide substantial flexibility, while the contribution of space and process heating is negligible. The results are robust to restrictions on the expansion of the transmission grid.