Examining the development of multilevel value streams and infrastructure for Distributed Energy Storage applications, with a focus on policy and regulatory frameworks in the Nordic electricity market.

Abstract

With the increasing development of renewable energy and the need for more flexibility by grids, DES is becoming a crucial component of smart grids in the next generation. The following thesis unpacks how DES can create value on manifold levels, from households trimming their peaks to communities building resilience and the broader system providing ancillary services. It maps the regulatory and market landscape shaping DES deployment in the Nordic electricity landscape. Using a qualitative approach, the work combines a thorough literature sweep, analysis of EU and Nordic policy texts, and comparative case studies of Smart Otaniemi in Finland, EnergyLab Nordhavn in Denmark, and NorFlex in Norway.

What the study finds is that, despite solid technology readiness and growing pilot projects across the Nordics, large scale DES uptake is slowed by ongoing regulatory fragmentation, unclear asset categorization, the double taxation of stored energy, and uneven participation rules in flexibility markets. Case studies show distinct national strides, Finland allows battery participation in Frequency Containment Reserves (FCR). Denmark is forging ahead with digital interoperability through its Flexibility Market Roadmap and Norway is piloting cross border market coordination. These are unbalanced and still do not show uniform qualification standards at present for distributed assets. This review also states that existing policy frameworks do not pay enough attention to how local flexibility services interact with system level markets, further tempering DES's ability to realize its full multilevel value. This work, therefore, provides a synthesized view of how DES technologies, policy levers, and market structures must come together in order to drive Nordic smart grid development forward. Coordinated governance, interoperable data systems, and harmonized access rules are required to unleash the potential of DES for flexibility, energy security, and inclusive participation in the energy transition.

Distributed Energy Storage (DES) teknologiat tarjoavat kasvavaa arvoa sähköjärjestelmän joustavuudelle, toimitusvarmuudelle ja markkinaosallistumiselle. Tämä työ tarkastelee DES järjestelmien monitasoisia arvovirtoja sekä niiden kehittyvää infrastruktuuria Pohjoismaiden sähkömarkkinoilla. Tulokset osoittavat, että maiden väliset erot sääntelyssä, datastandardeissa ja markkinarakenteissa rajoittavat DES teknologioiden täyttä potentiaalia. Työ korostaa tarvetta yhteisille sääntely ja markkinakäytännöille, datan yhteentoimivuudelle sekä yhdenmukaistetuille osallistumissäännöille, jotta DES voi edistää järjestelmän joustavuutta, energian toimitusvarmuutta ja reilua osallistumista energiatransitioon.