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Industrial Flexibility and Power Markets: Impacts on Energy-Systems and Environmental Outcomes

Abstract

Uncertainty in energy markets is driving flexibility adoption in European manufacturing, supported by distributed energy technologies and long-term contracting mechanisms. Simultaneously, growing environmental expectations demand decision support tools integrating operational, economic, and environmental dimensions. This study introduces IndustryOpt, a framework that allows the novel methodology of coupling detailed scheduling and energy systems optimisation models. This tool is combined with an aligned dynamic life-cycle assessment (LCA) to evaluate flexibility measures for certain representative weeks with hourly resolution. The methodology is demonstrated through two long-term case studies (2025–2050) in Spain and Norway, reflecting diverse electricity price dynamics and industrial processes under decarbonisation-aligned scenarios from the Europe-wide energy systems model EMPIRE. Results highlight three main insights: (i) detailed operational modelling is essential to correctly value flexibility, (ii) comprehensive energy-system representation supports robust investment planning, and (iii) flexibility measures and local technologies do not always guarantee environmental benefits, reinforcing the need for integrated assessments in future industrial energy strategies.

Category

Academic chapter

Language

English

Affiliation

  • SINTEF Industry / Sustainable Energy Technology
  • SINTEF Energy Research / Energy Transition
  • SINTEF Energy Research / Renewable Energy

Year

2026

Publisher

IEEE (Institute of Electrical and Electronics Engineers)

Book

2026 22nd International Conference on the European Energy Market - EEM

ISBN

9798319535542

View this publication at Norwegian Research Information Repository