Role of demand flexibility in the European power system

Balmorel: Power system model | August 2023 - October 2023

Ea Energy Analyses prepared a study for Danfoss to examine the impact of demand-side flexibility in the future European power system. A long-term analysis was conducted for 2025, 2030, and 2050, in line with the EU’s climate neutrality goal by 2050. The study aimed to quantify the overall value of various forms of demand flexibility.

Key metrics included socioeconomic impact, consumer monetary benefits, CO2 emissions and fuel consumption reductions, and power prices. These were studied under three scenarios representing different levels of demand flexibility.

The Balmorel power system model was used to analyse European day-ahead markets, focusing on optimising supply and demand dynamics to minimise overall system costs.

The study found that by 2050, the scenario with the highest flexibility level could provide a socio-economic benefit of €15.5 billion annually, reduce consumer costs by approximately €26 billion annually, and decrease average consumer power prices from €61/MWh to €55/MWh.

The project was conducted from August to October 2023. The report can be downloaded by following the link on this page.