Vision for 100 % renewable Åland Islands

Energy systems throughout the world are undergoing a transition where renewable energy is substituting combustion of fossil fuels in power and heat production. The motive for the energy transition origins from climate goals that are set out to limit global warming well below two degrees from pre-industrial levels. The objective of the thesis is to study how an existing energy network and local characteristics can be utilized to transform an energy system to operate 100% on renewable energy. As future energy systems are expected to rely highly on variable renewable energy (VRE) generation, the thesis also intends to study which additional investments on unit and system level elements would increase flexibility in an energy system with high intermittency in power supply. The energy system of Åland Islands is studied as a case example, as different stakeholders are currently aiming to convert the island fully renewable by 2025. The thesis outlines the energy system of Åland Islands to comprise of the regional power grid and district heating network located in the capital Mariehamn. Based on literature review, three energy system scenarios were built to represent three alternative energy transition pathways for Åland Islands to be implemented by 2025. An energy system modelling tool developed at VTT was utilized to define the cost-optimal configuration of thermal production units in relation to scenario-wise capacities of VRE generators, flexibility elements and power interconnectors. Modelling results were utilized to evaluate technical feasibility as well as economic and environmental impacts of the studied energy transition pathways. In addition, value of additional flexibility investments in demand and supply balancing was studied. Due to local conditions, Åland is able to base its power supply greatly on intermittent wind energy by 2025. As a key finding of the thesis, strengthening the link between power grid and district heating network via a bio-CHP unit would increase profitability and ...