Grenaa heating plant: a microcosm of flexible energy
By installing solar thermal panels and photovoltaic panels as a supplement to their wood chip boiler, the district heating company in the Danish town of Grenaa has created its own flexible energy system that not only pushes them forward in their green ambitions, but also lowers prices for their customers. Danske Commodities works closely with the heating company to help them plan and optimise their production. Senior Originator Jakob Krogshave Laursen explains.
Flexibility is key for the energy system. On a global scale, flexibility means that power is produced by wind turbines and solar panels when the weather allows it, while power plants take over as soon as the wind stops blowing and in cloudy weather. Increasingly, flexible assets like batteries and power-to-X provides us with even more options to store, produce and consume energy in the most efficient way.
But flexibility isn’t just a macro-trend. In an increasingly flexible and complex landscape, the ability to adapt to changing market conditions becomes more important, and some producers of energy become microcosms of the greater energy landscape.
Flexibility is key for the energy system. On a global scale, flexibility means that power is produced by wind turbines and solar panels when the weather allows it, while power plants take over as soon as the wind stops blowing and weather is cloudy.
Combining different energy sources
That is the case for Grenaa Varmeværk – a district heating company in Denmark providing heat to 5,000 households and businesses in the Danish town of Grenaa. Owned by the consumers, the heating company has a vision of becoming a green energy producer able to adapt to changing market conditions and customer needs. To achieve this, they have invested in a flexible energy setup that combines different sources of energy to optimise their production and consumption.
Grenaa Varmeværk's flexible energy setup consists of a wood chip boiler, solar thermal panels, and solar photovoltaic panels. The wood chip boiler is the main source of heat for the district heating network, running on locally sourced biomass to reduce CO2-emissions and support a circular economy. The solar thermal panels installed on the fields surrounding the boiler house supplement the heat production on sunny days, while the solar photovoltaic panels located on the adjacent field produce electricity that Grenaa Varmeværk can either use for its wood chip boiler and its heating pump or sell to the grid. In this way, Grenaa Varmeværk becomes a microcosm of the world-wide flexible energy system.
Optimisation and cooperation
To make the most of its flexible energy setup, Grenaa Varmeværk needs to plan its production and consumption in advance and react to the changing market prices and weather conditions. This is where Danske Commodities comes in. We have signed an agreement with Grenaa Varmeværk to provide them with forecasting, optimisation, and balancing services. At Danske Commodities, we use our expertise and data analysis to help Grenaa Varmeværk decide when to run the wood chip boiler, when to use or sell solar power, and when to buy or sell heat or electricity on the market. By doing so, we help Grenaa Varmeværk improve their environmental performance and secure the lowest possible prices for its customers.