ASSETS (Assessment of the Value of Flexibility Services from the Norwegian Energy System)
In the ASSETS project we will study the effects changed demand patterns due to zero emission neighborhoods, flexible industrial processes, smart grid infrastructure, storage technologies, and electrified transport will have in the Norwegian energy system and its ability to provide flexibility to Europe. We will also investigate how the current European market design favors or hinders the value of Norwegian energy resources.
We will expand the TIMES model to address demand-response and long-term uncertainty and we will develop a framework for analysis combining the Norwegian TIMES model with a European power market model.
ASSETS will investigate how to maximize the value of Norwegian energy resources in a world where energy is becoming cheaper and flexibility and power more valuable. It is crucial to understand how the Norwegian energy resources and development of the Norwegian energy system will affect our ability to be a flexibility provider. Similarly, the same developments affect Europe´s need for flexibility. It is the hypothesis of this project that the economies of scale in the Norwegian hydropower and natural gas will make them an attractive source of flexibility. But the need for flexibility depends on European energy policy and market design. It will have major effect also on Norwegian policy. If Norway implements technologies like demand response in buildings and industry as well as Zero Emission Neighborhoods, one main reason must be the additional values that arise from the resulting increased capacity in the hydropower system to serve European needs for flexibility. That again will induce a need for cables, used both for importing cheap energy and for exporting valuable power and flexibility. Before implementing such dramatic changes in the Norwegian system, we need more knowledge about the European need for the mentioned services in different market and system design situations. We will further develop the power market model EMPIRE and the energy system model TIMES in the project. The models will be expanded to include demand-response technologies (short-term), and uncertainties in prices (long-term) to have a more thorough modeling of the North-European energy system and market.
The project will educate one PhD student in modeling of demand response and six master students.