For the uninitiated, power system balancing ensures that electricity consumption matches production at any given moment, a process crucial for maintaining a stable and reliable power supply. However, the mechanisms behind this balance are complex and multifaceted. Through the perspectives of Peder Thunander, Supply Chain Director at Björneborg Steel, and Anna Jäderström, Head of Balancing Markets at Svenska Kraftnät, we explore the intricacies and benefits of power system balancing, shedding light on how industrial innovation plays a pivotal role in this process.

Understanding power system balancing services

Anna Jäderström, Head of Balancing Markets, Svenska Kraftnät.Svenska Kraftnät is responsible for maintaining the balance between electricity consumption and production in the Swedish electricity system. "To achieve this, we purchase and activate various ancillary services. These services are traded in an open, cost-effective, and non-discriminatory manner," explains Jäderström, who oversees the markets for balancing reserves and establishing agreements with responsible parties, as well as shaping the framework for electricity balancing. 

"Ancillary services contribute capabilities such as up or down-regulation of electricity production or consumption, which are crucial for maintaining system stability. These services can be provided by production facilities, adaptable consumption facilities, or energy storage systems," adds Jäderström.  

Thunander states that their significant energy consumption—60 GW split evenly between electricity and gas—drove their involvement in balancing services. "Over a year ago, we began a collaboration with Svenska Kraftnät, allowing us to adjust the power usage of our electric furnaces within specific limits. This helps stabilize the grid by reducing or increasing power consumption as needed," he adds. 

The concept of furnaces as batteries

Peder Thunander, Supply Chain Director, Björneborg Steel.Thunander highlights that their furnaces act almost like batteries, containing large amounts of energy and mass. He further assures that small deviations in power over short periods don't affect product quality, thus enabling effective load balancing. 

"The innovative idea of using furnaces as batteries originated from discussions between us, our energy partner, and various market aggregators," Thunander notes. 

"Our furnaces, with around 500 tonnes of goods heated to 800°C (1472°F), provide a slow heating process that allows for flexible power usage adjustments. This flexibility is crucial for participating in fast-response grid markets, where adjustments are needed within seconds," Thunander elucidates.  

Jäderström mentions that the idea of using furnaces for grid balancing is part of a broader strategy to encourage technological neutrality in the energy market.  

"Recent legislative changes have opened these markets to both production and consumption units, fostering diverse technological participation. This approach supports the efficient utilization of all available resources within the energy system, promoting the green transition," she adds.  

Financial and operational advantages

Thunander and Jäderström agree that there are substantial financial benefits for both parties involved. Thunander points out, "By participating in the balancing services, we're not only helping stabilize the grid but also supporting the broader adoption of renewable energy. This approach allows us to convert more of our ovens from gas to electricity, thus contributing to our goal of using more fossil-free energy in the long run." 

Jäderström emphasizes that the participation of more companies in balancing markets enhances supply and liquidity, which is essential for maintaining secure and stable operations. This, in turn, can lead to more stable electricity prices. For companies, this participation not only supports grid stability but also presents a viable business opportunity, generating significant revenue. 

Challenges and strategic implementation

Talking about the significant changes required to implement this system, Thunander highlights the changes made to Björneborg Steel's control systems. "We built an aggregated level from all our furnaces to ensure we aren't steering just one specific furnace. This system allows us to distribute adjustments across multiple furnaces, optimizing the power reduction or increase needed for grid balancing." 

"This setup was demanding because we are part of the first frequency program, which requires a response time of 100 milliseconds. This necessitated a robust control system and communication setup. Once we achieved this, we conducted thorough testing to ensure it wouldn't affect product quality, which remains our top priority," stresses Thunander.  

"We made calculations to determine the permissible effect variations, ensuring they stay within a range that doesn’t impact product quality. For instance, we can't vary more than plus or minus two degrees in the furnaces. This helped us calculate the effect we can have on the frequency market, allowing us to bid accordingly," Thunander claims.  

At the same time, Jäderström shed light on the broader challenges faced by industries in integrating flexible practices. She accentuates, "While reducing consumption during peak price times can lower electricity bills, it doesn’t directly compensate companies for their flexibility. Participating actively in balancing markets, however, can provide additional revenue streams and integrate flexibility into business models as a strategic resource management approach." 

Furthermore, Jäderström explains that such flexibility should be offered on terms set by the companies themselves, ensuring it is a viable part of their operational strategy rather than a forced adaptation.  

Long-term goals and sustainability

Looking ahead, Björneborg Steel is committed to advancing grid stabilization and sustainability. Thunander outlines the company’s goal to eliminate the use of fossil fuels by 2026, driven by initiatives such as their Greenforge program. This involves converting ovens to run on sustainable options like DME, bio-propane, and biogas, as well as increasing electrification. Despite challenges like limited grid power availability, they are committed to proactive steps with existing technology to achieve their goals. 

Jäderström envisions a future where diverse energy sources like wind, solar, hydropower, and hydrogen are more integrated into a unified energy system. She believes that this holistic approach will improve energy management, resource utilization, and the capacity to meet varying demands dynamically. "As the electricity system expands due to electrification, increased flexibility will be crucial for maintaining system stability and avoiding costly grid expansions," she remarks.  

Jäderström further emphasizes a holistic approach where different forms of energy are not viewed in isolation but as part of a unified framework. 

Electrification is the future

Jäderström notes the clear trend towards the electrification of industries, which she believes will lead to significantly higher electricity usage in the future. 

Jäderström and Thunander both emphasize the inevitability of electrification as the future of industrial processes, driven by the global push for decarbonization and sustainability. Jäderström notes the "clear trend towards the electrification of industries," which she believes will lead to significantly higher electricity usage in the future.  

Jäderström also highlights the role of electrification in decarbonizing key sectors like steel production, using Björneborg Steel as an example. She explains that as industries move towards electrification, there will be a corresponding need for flexibility to ensure that the system can handle the increased load without exorbitant costs.  

Thunander echoes this sentiment from a practical standpoint, detailing his company's efforts to reduce reliance on fossil fuels through electrification. "By 2025-2026, we plan to electrify as many ovens as possible," Thunander says, highlighting their strategy to reduce gas usage in favor of electricity gradually. He explains that their Greenforge program is about environmental responsibility and staying ahead of regulatory changes that will make fossil fuels more expensive. 

Björneborg Steel exemplifies how innovative industrial practices can contribute to grid stability and support the broader transition to renewable energy. Svenska kraftnät welcomes more industries to follow this path and contribute to power system stability.