Modelling the Future of the Baltic Energy Systems: A Green Scenario

Abstract

Abstract The electricity sector in Europe and in the world is undergoing rapid and profound changes. There is a sharp increase in the capacity of renewable energy sources, coal and nuclear power plants are being closed and new technologies are being introduced. Especially rapid changes are taking place in the energy systems of the Baltic States. Under these conditions, there is an emerging need for new planning tools particularly for the analysis of the power system properties in a long-term perspective. The main contribution of this article lies in the formulation and solution of optimization problems that arise when planning the development of power systems in the Baltic States. To solve this problem, it is necessary to use models of various power plants and make a number of assumptions, the justification of which requires the following actions: to briefly review the current situation of the production and demand of energy in the Baltic power systems; to conduct an overview of the Baltic interconnections and their development; to make forecasts of energy prices, water inflow, energy production and demand; to set and solve the problems of optimization of power plant operation modes; to demonstrate the possibility and limitations of the developed tools on the basis of real-life and forecast data. In this paper, a case study is performed using the main components of the overall modelling framework being developed. It focuses on the Baltic power systems in 2050 under the conditions of significant expansion in the installed capacity of renewable energy sources (RESs) and diminished fossil fuel power plant activity. The resulting electricity generation mix and trade balance with neighbouring countries is assessed, showing that even with significant RES expansion, the Baltic countries remain net importers and because of the intermittency of RESs, there are hours within the year when the demand cannot be met.