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Innovative Solutions for 100% Renewable Power in Sweden © Irena 2020 INNOVATIVE SOLUTIONS FOR 100% RENEWABLE POWER IN SWEDEN © IRENA 2020 Unless otherwise stated, material in this publication may be freely used, shared, copied, reproduced, printed and/or stored, provided that appropriate acknowledgement is given of IRENA as the source and copyright holder. Material in this publication that is attributed to third parties may be subject to separate terms of use and restrictions, and appropriate permissions from these third parties may need to be secured before any use of such material. Citation: IRENA (2020), Innovative solutions for 100% renewable power in Sweden, International Renewable Energy Agency, Abu Dhabi. ISBN 978-92-9260-169-0 About IRENA The International Renewable Energy Agency (IRENA) is an intergovernmental organisation that supports countries in their transition to a sustainable energy future and serves as the principal platform for international co-operation, a centre of excellence, and a repository of policy, technology, resource and financial knowledge on renewable energy. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy, including bioenergy, geothermal, hydropower, ocean, solar and wind energy in the pursuit of sustainable development, energy access, energy security and low-carbon economic growth and prosperity. www.irena.org Acknowledgements Valuable review was provided by Hanna Ek-Fälth, Sara Grettve and Klaus Hammes (Swedish Energy Agency), Pia Grahn (Swedish Energy Markets Inspectorate), Svend Søyland (Nordic Energy Research), Tomas Kåberger (Chalmers University of Technology), Saman Nimali Gunasekara (KTH Royal Institute of Technology Stockholm), along with Luis Janeiro, Asami Miketa, Bilal Hussain, Alessandra Salgado, Nadeem Goussous, Emanuele Taibi, Carlos Fernandez, Raul Miranda, Emma Aberg, Paul Komor, Paul Durrant and Roland Roesch (IRENA). The editor of this report was Lisa Mastny. This report was prepared by the Innovation team the IRENA Innovation and Technology Centre (IITC) under the guidance of Dolf Gielen, with text authored by Elena Ocenic, Nina Litman-Roventa and Arina Anisie. IRENA is grateful for the generous support of the Government of Sweden. Report available online: www.irena.org/publications For questions or to provide feedback: [email protected] Disclaimer This publication and the material herein are provided “as is”. All reasonable precautions have been taken by IRENA to verify the reliability of the material in this publication. However, neither IRENA nor any of its officials, agents, data or other third-party content providers provides a warranty of any kind, either expressed or implied, and they accept no responsibility or liability for any consequence of use of the publication or material herein. The information contained herein does not necessarily represent the views of all Members of IRENA. The mention of specific companies or certain projects or products does not imply that they are endorsed or recommended by IRENA in preference to others of a similar nature that are not mentioned. The designations employed and the presentation of material herein do not imply the expression of any opinion on the part of IRENA concerning the legal status of any region, country, territory, city or area or of its authorities, or concerning the delimitation of frontiers or boundaries. Photographs are from Shutterstock unless otherwise indicated. This document does not represent the official position of IRENA on any particular topic. Rather, it is intended as a contribution to technical discussions on the promotion of renewable energy. CONTENTS Figures 4 Tables 7 Abbreviations 8 Executive summary 9 1. Introduction 15 1.1 Global energy transformation 15 1.2 Swedish context 16 1.3 Structure of the study 17 2. Challenges and solutions in operating a 100% renewable power system by 2040 18 2.1 Key challenges from a policy and regulatory perspective 18 2.2 Key challenges from a system operation perspective 21 3. Solution I: Innovative ancillary services from both conventional and variable renewable energy sources 24 3.1 Description of the innovative solution 24 3.2 Implementationexamples from Sweden 26 3.3 Examples of similar implemented solutions 28 3.4 Qualitative cost-benefit assessment 29 4. Solution II: Pan-European market as flexibility provider 32 4.1 Description of the innovative solution 32 4.2 Implementationexamples from Sweden 35 4.3 Examples of similar implemented solutions 38 4.4 Qualitative cost-benefit assessment 39 5. Solution III: System-friendly integration of distributed energy resources 42 5.1 Description of the innovative solution 42 5.2 Implementationexamples from Sweden 49 5.3 Examples of similar implemented solutions 52 5.4 Qualitative cost-benefit assessment 54 FOR 100% RENEWABLE POWER IN SWEDEN | 3 6. Solution IV: Decarbonisation of end-use sectors via electrification with renewable energy sources 57 6.1 Description of the innovative solution 57 6.2 Implementationexamples from Sweden 60 6.3 Examples of similar implemented solutions 62 6.4 Qualitative cost-benefit assessment 68 7. Recommendations for policy makers 72 References 78 Annex 1 – Methodology 85 Annex 2 – Key concepts in systemic innovation 90 Annex 3 – Overview of the Swedish power sector 97 FIGURES Figure 1: Four innovative solutions for Sweden’s ���������������������������������������������������������������������������������������power system 10 Figure 2: The four solutions positioned in the power system value chain ����������������������������������������������������������������������12 Figure 3: Innovative options for renewable power �������������������������������������������������������������������������������������������� in Sweden 13 Figure 4: Towards a low-carbon, reliable, affordable and secure power system ����������������������������������������������������������16 Figure 5: Key interrelated policy and regulatory challenges towards 100% renewable 20 power in Sweden ������������ Figure 6: Key interrelated system operation challenges towards 100% renewable �������������������� power21 in Sweden Figure 7: Expected grid reinforcement investments by transmission system operators in the Nordic region, 2014–2025 (EUR million) ������������������������������������������������������������������������������������������������������������������23 Figure 8: Schematic representation of innovative �����������������������������������������������������������������������������������������������Solution I 25 Figure 9: Estimated benefits, costs and complexity for the implementation���������������������������������������� of Solution I31 Figure 10: Schematic representation of innovative Solution II ����������������������������������������������������������������������������������������������33 4 | INNOVATIVE SOLUTIONS Figure 11: Volume shares of intra-zonal versus cross-zonal trades in continuous intraday markets in Europe, 2017 ������������������������������������������������������������������������������������������������������������������������������36 Figure 12: Estimated benefits, costs and complexity for the implementation of Solution II ��������������������������������������41 Figure 13: Schematic representation of innovative Solution III ���������������������������������������������������������������������������������������������43 Figure 14: Types of distributed energy resources ���������������������������������������������������������������������������������������������������������������������44 Figure 15: Estimated distributed renewable energy generation (<1 MWp) in the Nordic countries, 2017 (GWh) ������������������������������������������������������������������������������������������������������������������������45 Figure 16: Benefits of market integration of distributed energy ���������������������������������������������������������������������resources 48 Figure 17: Model for co-operation between transmission and distribution system operators proposed by the CoordiNet project ��������������������������������������������������������������������������������������������������������������������������51 Figure 18: Estimated benefits, costs and complexity for the implementation of Solution III �������������������������������������56 Figure 19: Schematic representation of innovative Solution IV ��������������������������������������������������������������������������������������������58 Figure 20: Overview of renewable power-to-hydrogen applications and deployment �������������������������������� timeline 59 Figure 21: The HYBRIT concept compared to the conventional steelmaking process ��������������������������������������������������61 Figure 22: The Energy Observer reaching the Arctic Circle off the island of Spitsbergen, Norway �������������������������63 Figure 23: Hydrogen filling stations across Europe as of October �������������������������������������������������������������������������� 2019 64 Figure 24: Hydrogen refuelling station in Kawasaki, Kanagawa Prefecture, �������������������������������������������������������� Japan 65 Figure 25: Renewable power-to-heat to decarbonise a wool laundry factory, ���������������������������������������������� Uruguay 68 Figure 26: Estimated benefits, costs and complexity for the implementation of Solution IV �������������������������������������71 Figure 27: Horizontal and vertical challenges in the interconnected European ����������������������������������power system 75 Figure 28: Project overview �������������������������������������������������������������������������������������������������������������������������������
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