Abstract
Photovoltaic (PV) will have a prominent role in the future energy mix to achieve the energy and climate targets. However, its variability requires that its exploitation must be improved to minimize its integration costs. The objective of this research is to provide a methodology applicable to any energy system modelling tool for assessing the benefits of flexible demand as an option to better manage the PV variability and to reduce its integration costs. Two strategies are used to shift the flexible demand within three different scenarios based on the Italian energy system and its planned evolution to the year 2030. The effects of flexibility are investigated through an expansion capacity optimization of battery energy storage systems (BESS) and powerlines transport capacities in three different scenarios. Results suggest that flexible demand allows to reduce the BESS capacity of around 2 %–6 %, and powerlines capacity in the range of 2%–10 %, thus the resulting VRES avoided integration costs varies from 758 M€ to 8611 M€. However, it has negligible effects in boosting RES penetration and lowering the CO2 emissions. The estimated DSM remuneration opens up interesting possibilities for applications in the context of energy communities and electricity market aggregators.