Magnus Söderberg is professor of energy economics at Halmstad Universitym, specializing in energy economics. Previously he was professor at University of Southern Denmark where he was responsible for developing and teaching the B.Sc. in Energy Management, the only undergraduate education in Scandinavia that focuses on energy from a social science perspective. He is currently involved in research projects where he collaborates with both energy regulators and energy firms. He has a strong methodological base and together with research colleagues in Jönköping he has recently developed a benchmark approach for regulators that is more accurate than any of the existing approaches. His other research avenues include how to involve consumers in the development of the energy sector and extracting knowledge from smart meter data and other matched data sources. Magnus recently joined Mine Storage as member of the Board of Directors. We had a general chat about his view of the energy market.
What important energy trends do you see?
The energy sector is facing major challenges and these must be addressed quickly. Sweden has formulated an ambitious climate goal; by 2045, we should have net zero greenhouse gas emissions. This requires a reduction in greenhouse gases by 85% compared to the 1990 level. To succeed, Sweden, just like the rest of the world, must continue to restructure its energy sector in two ways:
- Increased energy efficiency. For example. more fuel-efficient engines, better insulation in buildings, finding substitutes to meet needs that today are energy-intensive.
- Larger share of renewable energy. This means, for the most part, expanded wind and solar energy.
What are the consequences of the energy transition that is taking place now?
More energy from solar and wind-based sources is good from an environmental perspective but leads to problems in the energy system. In Northern Europe, for example, the supply of energy is greatest when the demand is relatively low, i.e. in the summer. Southern Europe handles this better because their need to cool buildings is greatest in the summer.
In order to maintain balance in northern European systems, we must invest in both renewable production and in large scale energy storage capacity. Arriving at that conclusion is simple, but it is more complicated to decide how to implement it.
What role can batteries play in increasing the share of renewables in our energy system?
The biggest problem is that the batteries still have very low capacity. In a recent study at Luleå University of Technology, it was estimated that to provide the energy needed by a normal single-family detached house during 12 hour energy, it would need 700 kg of batteries at a cost of half a million SEK. Try to imagine the type of battery needed to store the energy generated during the summer to use in the winter. It is unlikely that we will see such batteries during our lifetimes.
What role will storage play in the future energy system?
The ability to store energy will be essential in tomorrow’s energy system. The problem with plenty of energy in the summer and much less energy in the winter is the biggest problem, but there are similar problems of less magnitude on a short-term basis. The challenge is that we may not need the energy when it is windy or when the sun is shining, but a few minutes, hours or even days later. In this case, there is a need to store energy to be able to constantly match supply and demand. Even if there are more storage alternatives in the short-term, there are still few cost-effective options.
What hinders the expansion of large-scale energy storage solutions?
We move in a complex political, economic and technical context. The electrification of society in general means that renewable electricity must not only replace the fossil electricity production that exists today, but it must also satisfy a need that is greater than the need we have today. I believe that large-scale water-based energy storage will become more attractive when the electricity grid begins to have greater problems as solar and wind represents a larger share of our electricity production.
“Demand for energy storage will increase in the long run – anything else is unrealistic.”