Synopsis: The European steel industry provides flexibility in the electricity system but stresses the need for infrastructure development and cost considerations. Recommendations include maintaining industry participation in demand-side response, swift access to support for fossil-free response, and avoiding regulatory burdens.
Article:
The European steel industry plays a vital role in providing flexibility within the EU's electricity system, offering insights into the potentials and limitations of demand-side response (DSR).
As decentralized energy systems grow, characterized by variable renewable energy sources, scaling flexibility services is crucial to ensure efficient operation and security of supply.
Despite its contribution, the steel sector emphasizes the urgent need for rapid deployment of fossil-free generation capacity and grid expansion to drive industry decarbonization.
Structural challenges such as the swift rollout of new generation capacity, grid expansion, and maintaining affordable electricity prices must be addressed as a priority to unlock the sector's full potential.
Assessments of flexibility needs and target-setting processes must consider the economic, organizational, and technical constraints of industrial processes like steel production.
European and national initiatives should create favorable conditions for industrial consumers to participate in demand-side response while preserving competitiveness and limiting system costs.
Recommendations include maintaining industry participation, ensuring swift access to support for fossil-free response, and avoiding regulatory costs associated with capacity mechanism expansion.
The steel sector welcomes efforts to harness a wider range of DSR technologies, aiming to enhance system resilience and optimize electricity grid utilization.
Conclusion:
The European steel industry's recommendations on demand-side response underscore the importance of balancing flexibility provision with infrastructure development and cost considerations. By prioritizing infrastructure upgrades and regulatory support, the sector aims to maximize its contribution to the energy transition while safeguarding competitiveness. Collaboration between industry and policymakers is essential to unlock the full potential of demand-side response technologies and achieve a sustainable energy future.
Source: STEELGURU |
