Everything you need to know about balancing power and green energy
As the green transition progresses and society becomes increasingly electrified, the need for flexibility in the power grid becomes ever more critical. One of the most promising areas where this flexibility can be achieved is within district heating – which brings us to the balancing power market. At AS SCAN, we help district heating companies become active participants in the balancing market, securing both financial gains and sustainable operations through the smart use of balancing power and green energy.
What is balancing power?
Balancing power is a central tool used by Energinet to maintain real-time balance between electricity production and consumption. If imbalances arise – for instance, due to changes in wind or solar production – the balancing market is activated. Here, actors such as district heating plants can offer flexibility, either by consuming more or less electricity, or by adjusting their production.
Monitoring and analyzing price trends in the energy market and balancing power data play a crucial role in optimizing district heating production.
According to Wind Energy Denmark, it’s clear that energy sector players can contribute to grid stability while also achieving financial benefits when they understand what balancing power is, and how flexible capacity can be activated in the market.
What is special regulation?
Special regulation is an extension of the balancing power market and is used when there’s a need to address local bottlenecks or specific grid challenges that cannot be managed by ordinary balancing power. In such cases, Energinet makes direct agreements with selected actors to ensure that the right volume is activated in the right place within the grid.
Sdr. Felding District Heating Leads the Way
Sdr. Felding District Heating Plant, nominated as District Heating Plant of the Year, is actively involved in special regulation. For example, they use an AS SCAN hot water electrode boiler to produce low-cost heat when electricity prices are at their lowest. Read more about how Sdr. Felding District Heating produces affordable, eco-friendly heat.
Operations manager Tonny Dam Jensen from Sdr. Felding District Heating in front of the heat pump system – playing a key role in the green transition and flexible heat production.
District Heating and Green Energy in the Balancing Market
District heating plays a unique role in connecting balancing power with green energy. This is because district heating plants often have access to:
- Electrode boilers and heat pumps that use green electricity
- Large energy storage systems, such as Power-to-X
- Biomass boilers and surplus heat from industry
AS SCAN employees in safety gear discussing the installation of a Power-to-X unit with Skovgaard Energy on an industrial site – a key step in developing future green energy solutions.
This flexibility means that heating plants can increase or reduce their electricity consumption in line with grid needs – directly contributing to participation in the balancing market. Interested in energy storage? Read this exciting article about what Power-to-X is.
Benefits of Participating in the Balancing Market
Participating in the balancing market and special regulation offers several advantages for district heating companies:
- Increased revenue through balancing and special regulation
- Greener operations by using electricity from renewable sources
- Greater supply security and robustness in the overall energy system
- Active involvement in the green transition
How to get started
To participate in the balancing power market, a heating plant must:
- Have flexible production and storage units
- Be able to respond to market signals quickly (typically within 15 minutes)
- Either collaborate with an aggregator or have direct access to Energinet’s platform
AS SCAN Solutions: Making district heating flexible
AS SCAN provides the technological solutions that enable district heating companies to actively participate in the balancing and special regulation markets:
- SCADA systems: Advanced monitoring and control systems enabling fast response to market signals.
- Electrode boilers and heat pumps: Sized and managed for flexible operation based on electricity prices and grid load.
- Heat storage: Enables heat production when it is cheapest and most climate-friendly – and consumption when the grid is under pressure.
Electrode boiler installed at Gørding District Heating Plant, producing sustainable heat. Combined with their solar panels, they have a flexible setup that allows quick switching between electricity and heat based on market needs.
Want to Help Connect Balancing Power and Green Energy?
Contact AS SCAN today and learn how we can help your district heating plant create new revenue streams, ensure flexible operation, and become an active player in the green energy system.