Navigating the 15 challenges of flexibility

Europe’s pivot towards renewable energy sources is driving a transformative shift in the energy sector. Energy storage solutions, active demand side management, and advances in IT are gradually replacing conventional large-scale sources of flexibility. These developments spur innovations and profoundly alter market dynamics. Yet, unlocking the full potential of flexibility faces many technical, regulatory, and operational hurdles. How to navigate these challenges? Magnus Energy's experts guide your through this in the latest report in a series.

Key insights

  • Why a clean energy future requires system flexibility. For Europe’s future system dominated by variable renewables, flexibility will not just be of benefit, but of fundamental necessity. There are many hurdles to overcome, though.
  • 15 barriers to maximising flexibility. We identify 3 clusters of challenges to maximising the availability and use of flexibility that need to be tackled to create a future-proof energy system.
  • Challenges for grid operators. These can already be observed today. Challenges range from a lack of coordination between TSOs and DSOs to voltage-control issues. And from a lack of system inertia to insufficient grid expansion projects.
  • Challenges for market parties. The market for flexibility is far from perfect. Challenges for market participants range from barriers to providing ancillary services to the (lack of) remuneration of flexible capacity. And from regulatory uncertainty to a lack of participation on the demand side.
  • Technological challenges. Let’s not forget there are significant technological barriers too. From sufficient energy storage to a lack of low-carbon peaking plants replacing fossil plants. From the expected massive electrification to the supply chain issues we already observe today
  • 6 solutions to overcoming these barriers. However knotty the barriers are, there are multiple solutions to maximising the availability and use of flexibility - especially when addressed in a coordinated fashion.
  • Path forward. Moving forward requires a coordinated effort among policymakers, industry stakeholders, and technology innovators, aligning on a vision that prioritises adaptability and resilience in Europe’s future energy system for the benefit of society.

Want to learn more about our report? Feel free to download the report via the button on the right. 

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Henry Noller

Consultant +31857430519