From Theory to Practice – Darijan Jelica on the Role of Flexibility Markets in Power Grids
Power grids are under pressure, and expansion takes time. Meanwhile, electricity demand is rising rapidly with the pace of electrification. At the Glava Energy Center’s energy conference on June 2, Darijan Jelica, an expert in flexibility markets with experience in developing local flexibility solutions, will demonstrate how these solutions can unlock capacity in existing power grids – and become a strategic complement to traditional grid expansion.
The ongoing energy transition is driving increased power demand across society. When development outpaces the construction of new power grids, the need for innovative approaches arises.
– Society’s green transition and energy transformation are creating a significant, short-term demand for grid capacity. When societal development moves faster than the time it takes to build new power grids, it creates a need for new solutions, says Darijan Jelica, Flexia Consulting.
From Theory to Practice in Local Power Grids
In projects in Mölndal, Borås, and Arvika, Jelica has worked hands-on to develop local flexibility trading—where electricity usage and production are adjusted in real time based on the grid’s needs. Experience shows that while technology is a crucial component, it is not the entire solution.
– There is still much work to be done in creating effective business models for local flexibility trading. A precise forecasting tool and engaged flexibility providers are two critical pieces of the puzzle for the system to function well, he explains.
Flexibility Solutions Must Be Tailored to Local Grids
A key insight is that conditions vary between different local grids—and solutions must therefore be designed accordingly.
– Business and procurement models for flexibility trading need to align with the flexibility providers available in a given local grid. The forecasting tool used to determine when and how much flexibility to purchase must be calibrated according to the specific characteristics and governing parameters of that local grid, says Darijan Jelica.
This means that the development of flexibility markets must be grounded in reality – collaborating with local stakeholders and addressing actual needs.
Potential Exists – but Varies
The benefits of flexibility depend largely on the types of electricity users connected to a local grid—such as power producers, industries, households, or energy storage. The degree of flexibility, for example through smart control systems, also affects the opportunities available.
– The potential depends heavily on the types of grid customers connected in a given local grid, says Darijan Jelica.
An important next step in development is therefore to create a clearer picture of where flexibility can deliver the greatest benefits.
– A first step in developing flexibility in Sweden is to assess the market potential for flexibility in more grid areas, he continues.
Critical Steps for the Future
For flexibility markets to become an established part of the energy system, they must work in practice—both technically and economically.
– If we can prove that flexibility markets function as tools to both free up capacity in our power grids and become a financially viable business, I believe they are here to stay as a natural complement alongside traditional grid expansion, says Darijan Jelica.
Register for the Glava Energy Center’s Energy Conference
Darijan Jelica is one of the speakers at this year’s energy conference at Glava Energy Center. Do you want to learn more about how flexibility markets can help address capacity challenges in power grids—and how flexibility can be activated where it actually exists?
Register for the Glava Energy Center’s energy conference on June 2!
The energy conference is organized as part of our ongoing projects in collaboration with Karlstad University – focusing on local energy governance, cross-sectoral cooperation, and energy communities in the border region: LOKEN (funded by the European Regional Development Fund and Region Värmland), Innovite (funded by the Swedish Energy Agency), and GränsEnergi (funded by Interreg Sweden–Norway and Region Värmland).
Fact Box: What Does Flexibility in the Power Grid Mean?
Flexibility in the power grid refers to the ability to adjust electricity production and consumption based on real-time demand. This can involve:
- Shifting electricity usage over time
- Adapting electricity production to demand
- Storing energy and using it at the right moment
Flexibility enables the management of variations in electricity consumption and production—such as from solar and wind power – without compromising the stability of the power system.