The intelligent energy system – possibilities and challenges

Denmark | November 2010 - March 2011

On behalf of the Danish Agriculture and Food Council, Ea Energy Analyses has made a SWOT analysis (strengths, weaknesses, options and threats) of the intelligent energy system based on the following sectors within the agriculture and food business: slaughterhouses, dairies, feeds companies, cornstarch factories, market gardening and primary agriculture.

Move electricity consumption and make production more flexible

It is recommended that the industries should prepare for the intelligent energy system by analysing their possibilities of moving electricity consumption, and by planning how to make production more flexible and designing the technical facilities and the collective agreement in accordance with this. In particular, it is important to consider flexibility when purchasing new equipment. As the energy is expected to become more expensive, it is also important to save energy.

Smart grid technology is important

It is estimated that smart grid technology in a broad sense is important in order to integrate large-scale wind power in a cost-effective way. The Danish Agriculture and Food Council should however notice that all steps in this direction are economically motivated. Insecurity about the spot prices in the electricity market will increase in future, and the development of new markets may make it more complex to buy electricity and act in the electricity market.

High connection fees are a barrier

A concrete barrier for the use of electric boilers is the relatively high fees charged by the grid companies for connection to the grid. The connection fee may represent a large part of the total cost of the electric boiler and be a considerable barrier to the profitability of investing in a boiler.