Flexibility matters: Impact assessment of small and medium enterprises flexibility on the German energy transition

This study analyzes the transition of the German electricity system towards climate neutrality by 2045, considering the demand-flexibility from small and medium enterprises (SME). The research uncovers the potential of flexibility from often-overlooked industrial SME sector, challenging their histor...

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Main Authors: Anas Abuzayed, Mario Liebensteiner, Niklas Hartmann
Format: Article
Language:English
Published: Elsevier 2025-01-01
Series:Energy Conversion and Management: X
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2590174525000121
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author Anas Abuzayed
Mario Liebensteiner
Niklas Hartmann
author_facet Anas Abuzayed
Mario Liebensteiner
Niklas Hartmann
author_sort Anas Abuzayed
collection DOAJ
description This study analyzes the transition of the German electricity system towards climate neutrality by 2045, considering the demand-flexibility from small and medium enterprises (SME). The research uncovers the potential of flexibility from often-overlooked industrial SME sector, challenging their historical neglect in energy models and national strategies. Despite representing a small fraction of peak load, SME flexibility contributes to a significant reduction in carbon emissions and transition costs, as well as a decreased reliance on other flexibility measures. However, careful design and incentivization strategies are vital to reap the full benefits of SME flexibility. Challenges in achieving a secure electricity supply during extreme weather conditions in a 100 % renewable system are identified, along with how SME flexibility helps to achieve climate neutrality. By 2045, wind power becomes vital for supply security and is operated as a dispatchable ramping-up technology. Storage flexibility becomes essential. The transition incurs substantial costs but is economically advantageous in the long run. Overcapacities from renewables allow for a higher degree of electrification, stronger sector coupling, and suggest the possibility of a local hydrogen production. Although our study examines the flexibility of German SME, demand-responsive technologies exist worldwide, however with different shares and potentials. The study provides valuable insights into how SME demand response can contribute to achieving a sustainable energy system.
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publishDate 2025-01-01
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series Energy Conversion and Management: X
spelling doaj-art-3077648d3056420e88d1467afb7e6b0a2025-01-20T04:17:50ZengElsevierEnergy Conversion and Management: X2590-17452025-01-0125100880Flexibility matters: Impact assessment of small and medium enterprises flexibility on the German energy transitionAnas Abuzayed0Mario Liebensteiner1Niklas Hartmann2Institute of Sustainable Energy Systems (INES), Offenburg University of Applied Sciences, Badstr. 24, 77652 Offenburg, Germany; Friedrich-Alexander-Universität (FAU) Erlangen-Nürnberg, Lange Gasse 20, 90403 Nuremberg, Germany; Corresponding author at: Offenburg University of Applied Sciences, Badstr.22A, 77652 Offenburg, Germany.Friedrich-Alexander-Universität (FAU) Erlangen-Nürnberg, Lange Gasse 20, 90403 Nuremberg, GermanyInstitute of Sustainable Energy Systems (INES), Offenburg University of Applied Sciences, Badstr. 24, 77652 Offenburg, GermanyThis study analyzes the transition of the German electricity system towards climate neutrality by 2045, considering the demand-flexibility from small and medium enterprises (SME). The research uncovers the potential of flexibility from often-overlooked industrial SME sector, challenging their historical neglect in energy models and national strategies. Despite representing a small fraction of peak load, SME flexibility contributes to a significant reduction in carbon emissions and transition costs, as well as a decreased reliance on other flexibility measures. However, careful design and incentivization strategies are vital to reap the full benefits of SME flexibility. Challenges in achieving a secure electricity supply during extreme weather conditions in a 100 % renewable system are identified, along with how SME flexibility helps to achieve climate neutrality. By 2045, wind power becomes vital for supply security and is operated as a dispatchable ramping-up technology. Storage flexibility becomes essential. The transition incurs substantial costs but is economically advantageous in the long run. Overcapacities from renewables allow for a higher degree of electrification, stronger sector coupling, and suggest the possibility of a local hydrogen production. Although our study examines the flexibility of German SME, demand-responsive technologies exist worldwide, however with different shares and potentials. The study provides valuable insights into how SME demand response can contribute to achieving a sustainable energy system.http://www.sciencedirect.com/science/article/pii/S2590174525000121Demand responseIndustrial energy flexibilityEnergy transitionPower system modellingDecarbonization
spellingShingle Anas Abuzayed
Mario Liebensteiner
Niklas Hartmann
Flexibility matters: Impact assessment of small and medium enterprises flexibility on the German energy transition
Energy Conversion and Management: X
Demand response
Industrial energy flexibility
Energy transition
Power system modelling
Decarbonization
title Flexibility matters: Impact assessment of small and medium enterprises flexibility on the German energy transition
title_full Flexibility matters: Impact assessment of small and medium enterprises flexibility on the German energy transition
title_fullStr Flexibility matters: Impact assessment of small and medium enterprises flexibility on the German energy transition
title_full_unstemmed Flexibility matters: Impact assessment of small and medium enterprises flexibility on the German energy transition
title_short Flexibility matters: Impact assessment of small and medium enterprises flexibility on the German energy transition
title_sort flexibility matters impact assessment of small and medium enterprises flexibility on the german energy transition
topic Demand response
Industrial energy flexibility
Energy transition
Power system modelling
Decarbonization
url http://www.sciencedirect.com/science/article/pii/S2590174525000121
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AT marioliebensteiner flexibilitymattersimpactassessmentofsmallandmediumenterprisesflexibilityonthegermanenergytransition
AT niklashartmann flexibilitymattersimpactassessmentofsmallandmediumenterprisesflexibilityonthegermanenergytransition