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Content archived on 2022-12-27

Development and demonstration of strategies for promoting DSM, utility based IRP and energy efficiency services in the Finnish restructured energy market

Objective

The objective of the project is to evaluate the on-going restructuring process in Finland in order to suggest and demonstrate improved strategies for promoting DSM and energy efficiency services. Also possibilities for utility-based IRP will be investigated. An essential element of this effort is to establish a clear understanding of the particular roles of the utility industry in promoting customer DSM and energy effgiciency services - either as a part of public policy objectives and/or as a part of a corporate commercial strategy. The project will benefit from and include on-going, and planned, DSM and energy efficiency services projects in Finland and plan to demonstrate conclusions through implementation case studies.

The project includes the following main tasks:

1. Identify options and constraints for promoting DSM and energy efficiency services in Finland. Clarify the most important current, and near term, roles, options, and constraints for promoting DSM and energy efficiency services in Finland as these are given by the government, the emerging competitive electricity market and the ongoing utility industry restructuring process.

2. Evaluate the restructuring process and its possible implications for promoting DSM, IRP and energy efficiency services. Based on identified constraints and options, establish consistent scenarios for the most likely future development of the restructuring process and how these developments may impact the roles and activity level of DSM and energy efficiency services. An example is the progressing separation of sales, generation and supply functions from the monopoly functions (grid and distribution network companies) and its different motives and objectives for promoting DSM and energy efficiency services.

3. Suggest possible strategies for promoting DSM and energy efficiency services. Based on an evaluation of the scenarios of the restructuring process, the project will suggest strategies for promoting DSM and energy efficiency services. That is (1) which set of options is most attractive (and robust) and (2) who will be the most likely best agent to implement each element of the strategy. Possible strategies for implementing utility based IRP will also be investigated.

4. Demonstrate how possible strategies for promoting DSM and energy efficiency services can be implemented by utilities. Based on on-going and planned activities in Finland the project demonstrates how strategies for promoting DSM and energy efficiency services can be implemented in a restructured energy market and demonstrates methods and tools for evaluating results and cost-effectiveness of different DSM and energy efficiency service programs. Demonstrations are carried out by six different utilities, half of them being rural utilities and rest of them operating in city areas, having also CHP generation and district heating activities. Each utility has different goals, target groups and strategies in implementing DSM and energy efficiency services. Goals and target groups for demonstrations are:
- To shift the heating of domestic hot water from day to night at residential customers having direct resistance heating
- To increase the use of wood for heating at residential customers with electric heating and wood based fire places
- To decrease peak load at customers inside certain geographical area due to network restrictions
- To increase the efficiency in public lighting
- To promote cost-effective DSM at industrial and commercial customers
- To promote DSM at residential customers without electric heating

5. Prepare final report and organize international workshop

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Programme(s)

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Topic(s)

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Call for proposal

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Funding Scheme

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Coordinator

Technical Research Centre of Finland (VTT)
EU contribution
No data
Address
4C,Tekniikantie
02044 VTT Espoo
Finland

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Total cost

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Participants (2)

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