Business from technology

Energy markets and climate change mitigation

Competence

Our knowledge of energy systems and markets as well as climate change mitigation, combined with a toolkit of models and methodological expertise, forms a strong knowledge base. We are using it in the energy sector for the good of both private companies and public administration. VTT has developed and applied methodologies for assessing greenhouse gas emissions and their uncertainty. The applications of the methodologies cover a wide range, from company level to national and global level.

VTT has a long history of developing algorithms and programs for electricity market modelling, energy production optimization, load modelling, load forecasting, demand-side management and demand response for utilities. Our research efforts are paving the way towards sustainable production and consumption systems. 

Challenges

• Climate change mitigation
• Growing global energy demand
• Improvement of energy efficiency
• High and volatile energy prices
• Security of supply
• Increasing the use of renewable energy sources
• Scarcity of energy resources
• Moving towards a carbon-free society
• Expanding the Emission Trading Scheme (EU ETS)
• Accuracy of emission inventories and related methodologies
• Integrating variable renewables like wind power into the energy system
• Greenhouse gas reduction benefits from transportation biofuels

Solutions and benefits from VTT

• Knowledge of and expertise in Nordic and European electricity markets and emissions trading
  
• Electricity market models for Nordic and other European electricity markets to help assess the effects of policies and future pathways
  
• Advanced energy system models to assess policy effects on the energy system, including costs and social welfare
  
• Optimization of power and heat production of a system to help utilities achieve cost-effective energy efficiency
  
• Estimation of the influence of wind power on the electricity system, including market price development and the need for reserve and regulation power
  
• Models and methodology for distributed generation and virtual power plants
  
• Electric load modelling and forecasting
  
• Sustainable energy use and energy efficiency
  
• Regulatory surveys and support for policy making
  
• Development of burden sharing methodologies towards efficient and fair pathway for reducing emissions
  
• Lifecycle analysis of different energy solutions, e.g. biofuels
  

References and merits

• VTT is a Member of the IEA GHG organization and of the International Association of Energy Economists
• Cooperation with the Intergovernmental Panel on Climate Change (IPCC) and several ministries and the Energy Market Authority. 
• For the Finnish Fair Fund’s Best of Environment 2008 Award