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CLEEN Strategic Research Agenda for
the theme Architecture of a sustainable
future energy system
Executive summary
“Pathway to sustainable future through energy system revolution”
The goal of the proposed program portfolio is to define a pathway to sustainable and flexible
energy systems of the future and to develop the key technologies, services, business models and
processes needed for the implementation of such systems in various development scenarios and
for different geographical areas including diverse market environments.
The future sustainable energy system will:
-
Provide Accessible, Affordable, Available and Acceptable energy to consumers
Use a sustainable and flexible mix of primary energy sources
Utilize flexible power generation to compensate for the intermittency of renewables
Combine various energy carriers
Coordinate the use of heating/cooling and power
Use both local and global energy resources
Utilize the flexibility offered by demand response and energy storages
Use primary energy very efficiently
Take into account the real-time price/cost of energy
Take into account the human behavioral factors and user-experience
Take into account different geographical areas having centralized or distributed market models
and their potential for technical and market integration
Offer high quality of supply with an affordable cost
What is suggested here is a large and covering research program, which combines the efforts of all
parties involved in the chain: power generation – energy carriers (electrical networks, gas, heat,
cool) – energy use. A strong focus is on systemic level, on the optimal integration of centralized
and decentralized energy resources and production as well as flexible use of various energy
carriers.
The program utilizes and strengthens the identified key fields of Finnish knowhow. These include,
for instance, the advanced application of information and communication technologies (ICT) at
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various energy system levels, combined heat and power (CHP), high expertise in internal
combustion engine based flexible power generation and fluidized-bed combustion, knowledge of
catalytic materials and advanced weather measurement technologies. Regarding the efficient
utilization of renewable power generation, the strengths include strong competence in electrical
power conversion techniques and integration of intermittent generation system using power
electronics.
The most important key knowledge to be developed, in addition to the present strengths of the
Finnish companies, include the optimization of multi-carrier (power, heat, cool, gases) energy
systems, new technical solutions for energy storages, smart coordination of CHP and thermal
storages, energy management systems also targeted to lower system levels, and finally a holistic
approach to the application of ICT systems in management of energy systems from centralized
and distributed production through various carrier systems down to the end-use level. The
optimization will take into account possible changes in community and industrial structures, market
conditions, as well as consumer behavior.
Background
Energy systems are probably in the biggest transition seen in their history, leading to major
changes in energy production and energy transmission as well as energy use. The driving forces
are the targets for deep reduction of greenhouse gas (GHG) emissions, depletion of conventional
oil reserves, rapid increase in energy demand, especially in developing economies, and
globalization. At the same time, the economies are coming more and more dependent on reliable
and secure power and energy supply, which together with the efforts to increase capacity and
access to energy will require massive investments in the transmission and distribution systems.
In addition, development of enabling ICT-technologies such as advanced automatic metering
systems and evolution of wireless communication networks towards Internet of things (IoT) offer
new possibilities for building, operating and controlling flexible and efficient energy systems.
The future energy system must be sustainable, reliable, and affordable.
The pathway towards the future energy systems will require:
-
-
Balancing the intermittency with flexible generation, storages and demand side management
Sustainable, reliable and affordable power generation solutions
Diversified energy sources to increase energy security
Flexible power generation units capable of fast load changes
Combination and coordination of various energy carriers: power, heat, cool, fuels
Intelligent demand side management for power and energy balance management
Optimal division of energy resources between local and centralized levels
Intelligent integration of zero-energy buildings in the energy system
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Smart grids, smart heat systems, smart energy use, smart customers and smart policies
Substantial changes in power delivery infrastructure, for instance wider use of direct current
(DC) systems
Extensive use of heat and power storages at various system levels
Tools and solutions for increased system reliability and security, including cyber security
Flexible and effective market models in wholesale and retail markets to enable incentives for
change, transmission system operators (TSO’s) and distribution system operators (DSOs’).
Co-operative systems level engineering, services and management enabled by appropriate
business models and regulation
Digitalization and ICT as an enabler of future energy system will contribute in:
-
Management of the complex energy infrastructure involving flexible generation, smart energy
end-use and coordination of various energy carriers and energy resources.
Management of energy in low energy and zero-energy buildings
Integration of distributed energy resources (DER), storages and demand response (DR) in
infrastructures and in energy systems
Changing customer needs: not only for energy supply but also for user-driven energy services
and actions
Wide use of photovoltaic (PV), wind and wave power, in addition to biomass and waste as fuels, all
offer great opportunities for export business for Finnish companies. The transition to future energy
system requires huge investments in the coming years and decades. For instance, ENTSO-E has
estimated that European transmission system operators will invest in their networks about 104
billion EUR during the next 10 years. In the same time period, total investments in the European
energy system will be about 1000 billion EUR.
With regard to power production, globally speaking the strongest increase seems to be in solar
power and in gas fired electricity and CHP production. The PV market is currently about 100 billion
USD/year, whereas VTT has estimated that gas fired production investments will total up to 1000
billion € in 2020 and 1500 billion € in 2030.
Positioning of the Finnish know-how
Being a Northern country, Finnish energy system has developed strong competence in both CHP
production and in reliable and intelligent electrical networks. This competence has been created in
close collaboration between energy and power companies and manufacturing industry, utilizing the
support of Finnish universities and research institutes during the past 30 years. The development
has been possible due to innovative Power and Energy Companies willing to support the
development of the whole energy chain from primary energy source down to end-use.
Today, the Finnish key competences focus on the following fields:
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Strong competence in multi-fuel power plants and flue gas cleaning technologies
Unique position in gas-fired engine based power plants for flexible power generation
Advanced know-how within catalytic materials and catalysts in the entire energy chain
Knowledge about different size CHP plants and related systems, such as biofuels handling,
steam & condensate and district heating systems
High expertise in fluidized-bed combustion and gasification technologies
World class products & systems in operation of smart grids
World class competence in electrical power conversion, including electrical systems of wind
and solar power generating plants
Strong ICT-industry to support Smart Grids and Smart Energy Use
High-quality automation systems of power plants: security, low operational costs
Arctic know-how
Strong knowledge and industry in weather measurement technologies, which are coming more
and more critical when intermittent generation (wind, solar) increases
Long term expertise in open energy market and associated business models
For decades, Finnish cities and industrial companies have utilized CHP production in district and
regional heating and process steam production. The availability and usability figures are of top
class in the world and the energy efficiency is very high. The plants are based on steam turbine,
combined gas and steam turbine, or internal combustion engine technology, and the fuel variety is
very large. In solid fuel driven plants, core technology is fluidized-bed combustion, which has been
developed up to a high level. The plants utilize sophisticated automation systems, which have also
been thoroughly verified in Finnish nuclear power stations.
Finnish universities, research institutes and industrial companies have developed proper catalytic
materials and catalysts for the entire energy chain, from fuel refining and processing to exhaust
gas cleaning.
Finnish companies have wide experience on arctic applications of various technologies particularly
within energy production systems, including power plants, electricity and heat distribution and
networks and user equipment, as well as construction and mechanical industries, e.g. icebreaker
manufacturing.
In general, technologies related to electrical energy engineering are and will be in the main role in
future energy systems. Finland has very strong electrical industry especially in fields of power
electronics, wind power generators, PV converters and Smart Grid technologies, all of which are
key technologies with regard to future sustainable energy systems. Electrical energy technologies
are already a bigger export business than other energy technologies in Finland.
Identification of the research needs
The vision of the energy system after the energy revolution comprises of the following:
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Optimal role and integration degree of centralized and distributed production
Optimal combination of district heating and local CHP
Optimal supply-demand balance of energy and power
High energy efficiency of energy generation, distribution and end-use
Optimal management of low- and zero-energy buildings
Energy services that satisfy citizen needs: accessible, affordable, clean, secure, reliable
and sustainable energy
New technologies and business models for energy and power balance management
Co-existence and co-operation of centralized and distributed energy market models
Transmission & distribution grid as a market place for energy market
Gas grid and district heating systems as an open market place
Flexible power production to compensate for intermittent renewable variations
Strong role of digitalization and ICT – various scale energy management systems
Smart grid, smart generation, smart energy use, smart energy markets
Technologies
FUTURE
ENERGY
SYSTEM
System
management
Figure 1
Markets and
Business
models
Key elements of the future energy systems
To realize the above vision, main research needs in Finland are:
-
-
Development and optimization of flexible power generation to increase the efficiency,
reliability and load follow-up capabilities, and to further reduce the emissions to comply with
anticipated future requirements: technologies, ICT, engineering methodologies, business
models, policies & regulations, existing infrastructures, and economic development in
different regions
Development and demonstration of internal combustion engine technology and power
plants for flexible power generation
Development of fuel pretreatment systems in multi-fuel boiler plants as well as recycling of
combustion wastes
Demonstration of sustainable and smart CHP plants in small and medium sized scales
Piloting of new waste heat recovery systems for increased electric efficiency
ICT-solutions and market mechanisms for the integration of multi-fuel, multi-carrier energy
systems with local energy resources such as local production, different storages and DR
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Understanding and development of energy market models and associated business models
to be applied in different market areas
Development of Smart Grid technologies and demonstrations of large scale business cases
in Smart Grids. Further development of Smart Grids to also cover multi-fuel environment
and different energy carriers, like gas, heat and cool.
Development and pilot testing of the key solutions and technologies for future energy
systems
Development of sustainable pathways towards the future energy system including
technological solutions and business concepts
In many regions, there is demand for increased distributed energy production. Several actors want
to improve energy self-sufficiency and utilize local sustainable primary energy sources, solar and
wind, supported by e.g. biomass, biogases and other waste-derived fuels. The increased utilization
of solid bio and waste-derived fuels entails a need to further develop fuel pretreatment systems
and adapt them to several kinds of alternative solid fuels and their mixtures. Solutions are also
needed for utilization of solid residues from combustion of these fuels. At the same time, the
energy efficiency must be improved. Different kinds of sustainable and smart CHP plants should be
demonstrated paying special attention to high electric efficiency and effective utilization of thermal
waste energy and other commodities, e.g. gases. The plants should be equipped with advanced
ICT solutions in order to enable as automated operation as possible and to make it possible to
control the production in a flexible way.
An important issue is also the optimal role of centralized versus distributed power generation and
how these resources should be divided between the system levels and areas. Additionally, the role
of various energy carriers should be opened for discussion: what is the optimal role of electricity
distribution versus heat distribution and gas distribution. How can the storages of these energy
forms be coordinated and utilized in an optimal way? These are big questions that pave way to the
future sustainable energy and power systems. Hence, their roles, advantages and limitations
should be investigated from the system level point of view.
In addition, multi-fuel, load-following and rapidly-reacting power plants must be further developed
to balance the electricity network when the production of intermittent energy continuously
increases. Internal combustion engines form a unique option for flexible power production but
further development and optimization of power generation flexibility is required. The other main
research topics include increasing engine efficiency, improvement of the reliability, grid connection
times and load follow-up capabilities and further reduction of emissions through primary (engine
related) and secondary (after treatment) methods in order to comply with the anticipated future
emission legislation.
Furthermore, as the importance of electricity increases in modern societies, the electricity gain
should be increased also for different thermal power processes. This means that waste heat of
thermal power processes and heat engines must be increasingly converted to electricity. There are
several alternative processes available to accomplish this, many of which must, however, be
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further studied and developed and, in particular, demonstrated by properly scaled pilot
installations.
Novel ICT solutions must be developed for smart coordination of energy production to meet
customer needs, and for system operation through remote control and monitoring. It is also
important to provide smart ICT tools to customers in order to enable their active participation in
energy markets and in power balance management. This requires extension of Smart Grid
technologies towards energy management systems for customers.
For market mechanisms, there is a need to evaluate different potential approaches and develop
mechanisms that incentivize the provision of capacity and flexibility in a manner that the end user
cost is minimized without sacrificing the economic feasibility for the industrial players in the
upstream chain. To be able to evaluate this, there is also need for system level research to
understand the optimal mix of future energy infrastructure in different scenarios, i.e. the role and
amount of e.g. flexible production, the division of the production into centralized and decentralized
shares, the role of grid improvements, and the role of flexible end use. The role of Smart Grid and
Demand Response should be extended to also cover multi-fuel, multi-carrier systems, which aim to
optimal mix of energy sources and flexibility both at generation and consumption side.
Strategic Research Agenda at CLEEN Ltd
The Strategic Research Agenda of CLEEN Ltd provides a holistic view for Finland to pass through
the energy revolution towards sustainable energy system, at the same time opening new business
possibilities for the exporting industry. The task is huge and multi-disciplinary, and requires close
collaboration between several industries as well as public parties.
The objective of the research portfolio is to create a pathway to energy system revolution
The strategic research topics to achieve this are:
-
Research on system level which takes into account different scenarios in the development
of global energy markets, development of energy demand in all energy end use sectors in
Finland and the neighbouring countries as well as potential market areas globally, smart
end use/demand response, improved grids & control, flexible generation, smart CHP
systems, open heat delivery networks, distributed storages, role of centralized versus
distributed solutions, optimal co-ordination and combination of various energy carriers
(electricity, heat, cool, fuels, gases)
 Intelligent solutions for system components, integration and management:
o Energy management for advanced energy systems
o Optimal coordination and system planning for 1) centralized versus distributed
resources as well as 2) centralized district heating versus local CHP
o Smart coordination of heat/cool demand, CHP and thermal storages
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o
o
o
o
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Sustainable distributed energy systems
Intelligent integration of zero-energy buildings in energy system
Solutions for maintaining energy system security and reliability also in the presence
of large amount of intermittent production
Smart Grid and Demand Response extended to multi-fuel, multi-carrier systems,
aiming at optimal mix of energy sources and flexibility both at generation and
consumption side
-
The role of ICT in controlling the whole energy system including the production of heat and
power at different system levels, storages and intelligent end use. Management of the
complex energy infrastructure involving flexible generation, smart energy end-use and
coordination of various energy carriers and energy resources => Coordinated management
and optimization of energy grids/networks: Multi-Carrier Smart Grid
-
Integration of increased volumes of intermittent power production into energy systems:
o
Flexible power generation value chains, and the related business models and role of
policy and regulation in different market areas
o
New tools for power balance management utilising forecasts based on weather
measurements and taking into account both power generation and demand
o
Energy storages for heat and power and their optimal integration into smart energy
systems
Smart grids which are in the key role when connecting distributed renewable energy sources to
the power networks and in managing the demand response. New technologies for sustainable
products:
o Development of flexible (multi-fuel, load following, load range) power generation
technologies
o Development of optimized CHP solutions of different size for various energy system
levels
o Development of high efficiency energy storage systems (from short to long term)
o Energy management systems at various energy system levels – down to
prosumers´ side
-
Potential to develop mid-sized comprehensive energy solutions, adapted technologies and
business models for developing markets, which could open up new potential for Finnish
industry but require collaboration within the whole value chain
-
Local energy grids, microgrids and off-grid solutions. Local level energy management
solutions and services, virtual power plants
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Assessment of the effects of various changes in the operating environment of the energy
companies: increasing amount of low-energy buildings and local power production, the
emergence of multi-carrier systems, transition from energy selling to providing energy
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solutions and services, and managing the local energy resources as a part of the total
energy system
-
Novel market solutions and business models:
o Business models and mechanisms for future energy systems
o Policy and regulation for future energy systems
o Energy services to various scale customers to enable their active role in future
energy systems
 Services for increasing the energy efficiency of energy end use
 Services for the integration of customers in energy system as smart energy
prosumers
Figure 2.
A sustainable, reliable and affordable energy system of the future
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Flexible energy systems including large penetration of Renewable Energy Sources (RES) to enable
sustainable, secure and affordable future
1)
2)
3)
4)
Solutions for power generation, energy distribution and end-use sites (DR, energy storages)
Integrated systems for managing the whole energy system (role of ICT is essential)
Business models and market mechanisms
Holistic system approach where ICT-solutions and business models cross the energy chain
Main topics of future
energy systems
Power
Production
Transmission &
Distribution
Energy use Active customers
Energy storage –
Heat and Power
Energy economy,
markets, policy &
risk
How to ensure that
future energy
system is
sustainable
Flexible
generation to
meet power
balance
challenge. Multicommodity CHP.
Efficient use of
capacity to enable
wide area markets.
Security and cyber
security.
Sustainability in the
design of energyrelated products,
services and
systems over the
life-cycle
Increase the
system flexibility in
order to be able to
integrate more
intermittent power
Market
mechanisms that
enable large
penetration of
RES are needed.
High energy
security.
Technological
solutions needed for
the vision
Plants that are
capable to fast
load changes.
Multi-fuel and
CHP, including
also cooling
Integration of
storages, local
resources and
Demand response.
Aggregation and VPP
Energy efficient
equipment and
processes. Energy
management
systems at various
levels.
Extensive
storages for heat
combined with
CHP and end-use.
Demand
response, energy
management
systems at small
and medium size
customers
How to optimize the
system with lot of
peak power, high
peak energy prices,
increased reserve
capacity and
storage needs
Importance of
reserve capacity
increases. Fast
reacting plants
integrated with
storages. Flexible
fuels. Seasonal
storages.
Holistic optimization
for multi-carrier
energy distribution,
integration of local
energy sources and
storages.
Optimal equipment,
infrastructure and
control systems
which are feasible
in various operating
environments.
Smart
coordination of
heat demand,
CHP and heat
storages. Batteries
for shorter term
balance
management
Optimal operation
of local resources.
Market models to
share the benefits
between players.
How do the system
solutions differ from
arctic to tropical
areas, from
industrialized to
developing
economies
Variations in local
energy sources 
flexibility. Heat
versus cool
storages.
Basic solutions same.
Role of centralized
versus distributed
systems varies.
Access to energy
sources, existing
infra, industrial
structures, etc.
operation
environment
factors.
Thermostat
controlled
appliances offer
high flexibility
ranging from heat
to cool
Different market
models and
policies in EU,
USA, Asia and
Russia. Different
community and
industrial
structures.
What kind of earning
models can be
created to fit the
future energy system
Promotion of
flexible power
generation. New
mechanisms to
divide the
Earning models of
both energy and
network companies
change. New
innovative tariffs are
Business
models
can be supported
by
policies.
Solutions depend
on local factors,
Virtual Power
Plant.
Business models
for demand
response needed.
Role of tariffs and
feeding tariffs is
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Instead of just
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benefits. Waste to
energy.
needed.
why
their
development
will
focus on different
regions.
selling
energy, providing
energy solutions
and associated
services.
essential.
Changes in
customer behavior
call for new
business models.
Suggested project & program portfolio for the theme
What is suggested here is a large and covering research program, which combines the efforts of all
parties involved in the chain: power generation – energy carriers (electrical networks, gas, heat,
cool) – energy use. The overall goal is flexible and sustainable multi-carrier energy system
enabling large penetration of renewable energy sources by comprehensive power balance
management solutions. As illustrated in Figure 1, to achieve this requires efforts in three different
perspectives:
1. DEVELOPING NEW TECHNOLOGIES FOR THE POWER GENERATION,
TRANSMISSION, DISTRIBUTION AND END-USE, INCLUDING STORAGES AS
WELL AS FLEXIBLE EQUIPMENT FOR POWER USE
2. INTELLIGENT SOLUTIONS FOR SYSTEM INTEGRATION AND MANAGEMENT:
MULTI-CARRIER SMART GRIDS/NETWORKS, EXTENSIVE USE OF ICT- AND
AUTOMATION SOLUTIONS FOR OVERALL ENERGY SYSTEM MANAGEMENT
3. NOVEL MARKET SOLUTIONS, BUSINESS MODELS AND SERVICES
This is a multi-disciplinary task and during the preparation of the program, interfacing and
collaboration with the other SHOKs, like RYM and DIGILE, are to be examined.
Participants of the SRA group
Erkki Antila, Vaasa University
Marja Englund, Fortum
Satu Helynen, VTT
Tero Hottinen, Wärtsilä
Pertti Järventausta, TTY
Niko Karvosenoja, SYKE
Ari Kettunen, Foster Wheeler Energia
Matti Lehtonen, Aalto University
Seppo Niemi, Vaasa University
Juha Paldanius, Vaisala
Jarmo Partanen, LUT
Leena Sivill, ÅF-Consult
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Responsible author
Matti Lehtonen, Aalto University, matti.lehtonen@aalto.fi, +358 40 581 57 26
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