Demand side flexibility
Demand side flexibility means reducing, increasing, or temporarily shifting energy consumption according to the availability of energy, the energy price, and the emissions caused by energy production.
The production of renewable energy sources, which is dependent on weather conditions, varies greatly: sometimes electricity production exceeds energy demand, while at other times electricity production is not enough to cover demand. When electricity production exceeds the normal demand, it is cheaper to use and store electricity. During periods of low electricity production, electricity use should be reduced due to both the high price and the higher emissions from electricity production.
To ensure the reliable operation of the electricity grid, it is important that consumption and production are in balance at all times. If production cannot be increased or decreased quickly, electricity consumption patterns must also be made more flexible. Of course, flexible production, such as hydroelectric power, and imported electricity are also still used to balance the electricity grid.
Flexible energy consumption for households
Flexible energy consumption for households often means changes in energy behavior and scheduling everyday energy-intensive activities to times of cheaper electricity prices.
Flexible energy consumption examples: Scheduling heating i.e., calculating electric heating flexibly, for example, during working days or trips, heating domestic water at night, and avoiding the use of energy intensive appliances when the price of electricity is very high.
In detached and terraced houses with electric heating, the majority of electricity consumption is used to heat living spaces and water. In apartments that are not heated with electricity, electric underfloor heating in wet areas, refrigeration, food preparation, laundry and dishwashing, and home electronics consume more electricity. Smart household appliances are also one solution for managing electricity consumption.
The image on the left shows the electricity consumption of two sample households on a winter day, when there is wind at night but not during the day. The exchange price of electricity is high when there is no wind. Household A (dotted line) consumes the most electricity in the morning and early evening and is not flexible in its electricity consumption according to the exchange price. Household B, which has an exchange-based electricity contract, monitors electricity prices and is somewhat flexible by scheduling its electricity consumption away from the most expensive hours.
Smart energy solutions
On the market, there are several smart energy solutions that manage consumption on behalf of households. Such technologies include, for example, various smart home energy managementsystems, and small smart devices..
Energy management systems automatically optimize home energy consumption based on electricity prices, weather forecasts, and home electricity consumption profiles, also considering possible own electricity production and storage. With the help of various smart energy solutions, you can monitor your own electricity consumption and schedule everyday activities to cheaper hours, especially for the activities that consume the most electricity.
There are also home automation solutions that are simple but more expensive for the consumer. Such solutions optimize the energy use of the home on behalf of the resident through sensors installed in the home. Based on the upcoming legislative reform, electricity sales companies will be able to offer remote control of electric heating to households in the future. This will require households to have an electrician carry out the necessary installations, unless they have already been done previously, for example, to utilize nighttime electricity.
Electricity contracts
A household electricity bill consists of three roughly equal parts:
- The selling price of the electricity consumed
- The price of electricity transmission
- Taxes
Electricity sales contracts can be tendered, and they can be made with the electricity company of their choice. An electricity transmission contract is always made with the local distribution company. More and more Finns have an exchange-traded electricity contract, where the price of electricity used by their home is determined daily based on the electricity market's production and consumption estimates.
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