The power of energy storage in electrification

In addition, an increasing part of the electricity mix consists of weather-dependent power, which is significantly cheaper per kilowatt-hour delivered, but also has considerable time variations.

Sweden has long benefited from a reliable supply of green electricity, thanks to its extensive use of hydro and nuclear power alongside a well-developed electricity grid. This combination ensures the delivery of clean energy with consistent quality and timing.

The green transition and electrification have led to both rapidly falling prices for renewable energy production, as well as increased electricity demand. While renewable energy production, primarily solar and wind power, provides large and cheap energy supplements, their production profile does not necessarily match the need.

To incorporate more renewable energy into our systems, there are some fundamentally important areas:

• Plan consumption to match expected production
• Store energy for later
• Reinforce power grids to even out the effects across larger areas

Flexible use

Flexible use refers to aligning energy consumption with expected production. Many processes and systems can be adjusted—both technically and administratively—to better coincide with periods of energy generation. By effectively planning and managing consumption, we can make more efficient use of available energy resources.

For example, energy consumption can be strategically scheduled to coincide with either private energy production or low-price hours on the electricity grid. This includes measures like spreading the start-up of energy-intensive processes to reduce peak effects during periods of high demand in batch operations. Additionally, it involves coordinating logistics schedules with available electricity outlets on the property to maximise efficiency and minimise costs.

For the technical aspects, there are many different systems. It is common for units to be connected to spread power over time or to shift consumption to low-price hours, such as when charging electric cars. An overview of both energy and power planning, preferably as a holistic solution in conjunction with other energy efficiency measures, is a valuable tool for optimising the energy system.

Energy storage – most interesting for the future

Smart control of the electricity grid offers plenty of "low-hanging fruit" for improvement, making it a critical area where energy storage will play a vital role. While these advancements are essential today, energy storage becomes even more exciting when looking toward a future when smart local grids become widespread.

Many might associate energy storage primarily with batteries, and for good reason – they are highly flexible and versatile. Batteries are well-suited for storing high-quality energy, such as electricity, for periods ranging from hours to days. With their high energy and power density, they are central to the electrification of the automotive industry.

However, energy storage isn't limited to batteries. Other technologies, such as pumped hydro, hydrogen storage, and thermal energy systems, also offer innovative and effective storage solutions. As we move toward a more sustainable energy future, these diverse storage methods will play a key role in optimising and stabilising the grid.

For stationary systems, energy storage is used in several areas:

• To store privately produced renewable energy to reduce costs and perhaps reach certain environmental certification goals.
• Reduce power peaks or accommodate an expansion of an existing subscription.
• Trade electricity on the spot price market or with imbalances.
• Act as a backup or UPS or support the electricity grid through, for example, the frequency maintenance reserve/support services to Svenska Kraftnät.

Under the right conditions, battery storage is a widely applicable and cost-effective solution for most situations, making it one of the simplest options to implement in the short term. Alternatively, technologies like pumped hydro storage can offer excellent potential, particularly if you already have large water reservoirs with height differences. However, this approach is less common, expensive, and time-consuming to implement, especially if starting from scratch.

Battery energy storage has evolved from a niche technology for early adopters, to being a widely spread solution in many contexts today, both for private and industrial use. Decreasing prices on batteries due to a more mature market and technology, combined with increased electricity and connection fees and high compensation from the support service market, have led to installations multiplying year after year.

Intensive work is also underway to secure operations against disruptions, for example, through backup and uninterrupted power, which has arisen due to the global situation, and where smart local small networks can create the conditions for handling this type of crisis.

Impact on electricity infrastructure

Strengthening the electricity grid's infrastructure is closely tied to advances in energy storage, as peak loads continue to pose limitations. The grid's enhanced connection to the European continent has introduced new pricing dynamics. For instance, electricity prices in Swedish regions are now sometimes influenced by German solar power, natural gas, and French nuclear power. This integration has led to significant fluctuations in electricity prices.

An increased transmission capacity helps balance supply and demand across wider regions, mitigating shortages and surpluses. This allows renewable energy in one area to partially substitute fossil fuels in another. However, the reverse can also occur – when renewable energies fall short due to insufficient wind or sunlight, leading to significant price volatility.

These price fluctuations in electricity and increased user flexibility make energy storage more economically attractive. We can also see an increased number of projects with more dynamic grid connections, both in conditional agreements with a higher connection effect at night, as well as micro-grids and energy communities enabled by relaxed regulations, where local energy hubs solve local bottlenecks in the electricity grid.

From energy to effect

The consequence of increased electrification and a shift away from fossil-based energy sources is the rising need for investments in electricity grids and a general shift in focus from energy to effect. The increasing costs of expanding distribution networks combined with bottlenecks in the electricity grid provide incentives to better plan and control effects, which is relevant for both the network operator, the energy producer, the industry, the parking lot, the property company, as well as for the private individual.

The need to review your power budget also increases when the settlement period is reduced from 60 to 15 minutes, and all electricity grid companies must implement a completely new pricing model that includes an effect fee by January 1, 2027.

Well-planned effect management can then lead to, among other things:

• Lower costs for effect charges.
• Higher compensation or lower cost for purchased and sold electricity/energy.
• Reduced connection dimensions, usually for electricity, but also relevant for thermal energy (e.g. district heating/district cooling).
• Increased room on the grid for other installations or reduced investment costs for the grid owner.

There are several pieces to the puzzle, where control can be effective for consumers, who can periodically be flexible with slow processes, electric car charging, heat pumps, etc., or where smart scheduling can shift loads apart.

Why choose battery-based energy storage?

Batteries provide an effective and versatile solution for energy storage, enabling efficient energy use and the ability to shift consumption over time.

With their flexibility, batteries are designed to perform a wide range of functions and adapt seamlessly to diverse needs:

• Store your private renewable electricity for later use to reduce both purchased and sold electricity. It can also affect environmental certifications, CO2 footprint in production, compliance with the housing association's building regulations, etc.
• Expand operations, even though no more effect can be allocated in the near future, by using other hours to replenish energy or boost the fast-charging of vehicles.
• Serve as a reliable backup during grid failures, either by phasing out or replacing fossil fuel-powered emergency generators. Unlike traditional emergency units, a battery storage system actively contributes during regular operations.
• Adjusting time windows for buying and selling electricity benefits both consumers and producers. Consumers can avoid high costs during peak pricing, while producers can reduce losses during times of high renewable energy supply.
• Provides an opportunity to manage imbalances for the electricity trader or to trade with imbalances on the intraday market.