Analysing the effects of 24/7 Carbon-free Energy procurement strategies on the electricity system : Case Study of commercial and industrial sector in the Netherlands

Sammanfattning: Considering the growing importance of the electricity sector in the worldwide decarbonisation efforts, as well as large volumes of energy consumed by the commercial and industrial (C&I) sector, corporate power procurement is found to be a significant contributor to building a net zero economy. Within this topic, hourly matching of carbon-free electricity supply with demand, or 24/7 Carbon-free Energy (24/7 CFE), is identified as a next-generation power procurement framework, with growing interest from a wide range of stakeholders in the energy sector and benefits backed by robust research evidence. This thesis focuses on analysing the potential impacts of 24/7 CFE on the C&I consumers, as well as the wider system, in the context of the energy transition in the Netherlands, where some hourly matching initiatives already take place. The analysis is performed with the use of an existing open-source PyPSA model, with key elements of 24/7 CFE embedded in the code. The study finds that following the hourly matching strategy by the C&I consumers has larger environmental benefits for both the user and the system, than the currently used approach. Furthermore, the price premium connected with following this ambitious framework can be significantly reduced, if advanced storage and clean generation technologies are developed. 24/7 Carbonfree Energy procurement can also complement more ambitious national decarbonisation goals, or EU-wide emission reduction mechanisms, such as the ETS. It also allows for hedging against various risks, for instance by building a generation portfolio independent from volatile natural gas prices, which is especially relevant in importing countries like the Netherlands. Finally, it is concluded that increased participation in 24/7 CFE strategies and cooperation between the private and public sector in developing technologies such as long-duration energy storage, Allam cycle or the hydrogen infrastructure, could accelerate the transition to a net zero electricity system in a cost-efficient manner.