How a Flex Market Works - LOKEN invited to a workshop

How does a flex market work and conditional agreements? Glava Energy Center and the LOKEN project organized a workshop on flexibility. Participants included local grid companies, industries, electricity producers, and stakeholders with the potential to be flexible in their operations.

Energy flexibility is about being able to control and match the production and consumption of electricity. As the power grid is already under strain, flexibility is a way to optimize capacity and reduce the risk of peak loads. Flexibility is also a pathway to implementing more renewable energy into the grid, such as solar and wind.

On Friday, April 11, around 30 project participants took part in a workshop on flexibility. The event was held at Karlstad University. Large energy-intensive companies such as Billerud Gruvön, Volvo CE in Arvika, and Rottneros mill in Sunne were present. Several local grid companies also attended to enhance their expertise.

Darijan Jelica, a flexibility expert and CEO of Flexia Consulting, shared knowledge on how a flex market and conditional agreements work in practice. The engagement was high, and many took the opportunity to ask questions.

"Many companies want to understand how it works in practice and what the business and delivery models look like. This kind of meeting is good for creating a common understanding of how electricity is used and how flexibility can be applied," said Darijan.

Unclear business models slow down development

When a company or organization voluntarily reduces its electricity consumption at certain times, for example during periods of high load, it frees up capacity in the grid. This is something that grid companies may be willing to pay for, as it is often cheaper and more sustainable than expanding the grid. However, because it is unclear what companies actually earn from offering flexibility, development has been slow, even though the need is large and the technology exists.

There is much to suggest that the conditions for local flex markets will become clearer in the future. This could happen through common technical standards and simpler regulations that lower the barriers for both grid companies and electricity users.

David Ålander, a network planner at Karlstads Energi, saw the workshop as an opportunity to increase his own knowledge about flexibility:

"Now I have a better understanding of how flexibility can be used and what the models look like."

The participants highlighted the importance of spreading knowledge, developing business concepts, and contacting customers, as well as the fact that they now have basic knowledge to begin analyzing the needs and opportunities for flexibility.