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Current utilisation of flexibility in the Nordics

Photo: E.on
In this chapter, we present relevant information about the power/grid sector in each country, in addition to information on how demand-side flexibility is utilised today. We first present a cross-Nordic overview comparing the four countries, before going into detail on each country (called country context).
Norway, Sweden, Denmark and Finland.

Information included in country contexts

We have identified relevant parameters and how they facilitate the use of local demand-side flexibility from smart appliances across the four countries. These are summarised in three categories:
  1. Need for flexibility.
    • What are the main drivers for the use of flexibility (from the DSO's point of view)?
  2. Current use of flexibility, including:
    • The TSOs’ use of aggregated flexibility resources today
    • Other DSO flexibility mechanisms in place or under implementation
    • End-user tariff design in the distribution grid (grid and energy) that may affect the consumption profile
  3. Context affecting the adaptation of new flexibility
    • The number of DSOs locally and regionally, which can affect coordination, standardisation, etc., for each country
    • Technology requirement for connections, including status and functionality for smart meter roll-out (AMS), affecting the technical possibilities such as measurement and access to HAN (Home Area Network)

Comparative Analysis and Cross-Nordic Overview

Before we take a deep dive into the different countries, we first show a cross-Nordic overview to make it easier to compare how the different countries utilise local flexibility today. In the figure below, we see that the number of DSOs differs quite substantially, from 40 in Denmark to 170 in Sweden. All countries have rolled out smart meters. Finland has started the roll-out of the second-generation smart meters (AMR 2.0), and it is also under preparation in Norway and Denmark. We also see that both HAN ports
Home Area Network, enabling monitoring and control of energy usage
 and data hubs are being implemented, except for data hub in Sweden. Conditional connections are used or piloted in all countries, and time-of-use or power-based grid tariffs are being implemented.
Table 2: Comparison of key elements
Number of DSOs
Smart meter roll-out
Next generation smart meter status
HAN port
imple­mented?
Datahub
imple­mented?
Conditional connections in use?
Time of use or power based grid tariff?
Norway
85
100 %
Under deve­lopment
✓
✓
✓
✓
Sweden
170
100 %
✗
By 2025
✗
✓
Imple­mented by some DSOs. Required by 2027.
Denmark
40
100 %
Under pre­paration
Optional
✓
✓
✗
Finland
77
100 %
Roll-out started
✓
✓
Piloted
Small customers: some
Large customers: all

Identified demand-side flexibility initiatives

In total, 45 demand-side flexibility initiatives have been identified across the Nordic countries in this study. Norway is the most active country with 20 projects. Sweden is the only country with permanent demand-side flexibility solutions. In the table below, the initiatives are sorted according to maturity, where a technical demo only demonstrates that the solutions work technically, while a pilot also involves payment, verification, etc. A commercialised solution is integrated into the DSO's daily operation of the grid and is not dependent on financial support.
Table 3: Number and maturity of identified demand side flexibility initiatives
Commercialized solutions
Technical demos
Pilots
Total
Norway
0
12
8
20
Sweden
7
0
7
14
Denmark
0
1
3
4
Finland
1
2
4
7

Purpose of flexibility initiatives

Utilising local flexibility is one of many ways grid companies can solve or reduce grid issues. The goal of the local flexibility initiatives can therefore be to increase knowledge on whether using local flexibility can be a profitable way to solve issues, and to get closer to employing it both technically and commercially. As shown in the table below, the purpose of 13 out of 45 of the initiatives was to understand and develop solutions, meaning they were not initiated to solve a grid issue present today. The purpose of 17 of the initiatives was to solve specific grid issues. We also identified some other purposes, including establishing a marketplace or a microgrid.
Table 4: Maturity of identified demand side flexibility initiatives
Purpose
Norway
Sweden
Denmark
Finland
Total
Understand and develop solutions
5
2
1
5
13
Solving specific grid issues
4
9
3
1
17
Marketplace
3
0
0
1
4
Microgrid
4
0
0
0
4
Other
4
3
0
0
8

Flexibility sources involved (all initiatives identified)

Finally, we have studied which flexibility sources have been involved in the different initiatives. We see that a range of flexibility sources have been tested, although many of them only once. The flexibility sources that have been tested the most are EV chargers (17) and heat pumps (8). PVs, ESWHs, and batteries have all been tested in six flexibility initiatives.
Table 5: Loads involved in demand side flexibility initiatives
Norway
Sweden
Denmark
Finland
Total
EV chargers
9
4
3
1
17
Heat pumps
0
6
1
1
8
PVs
4
0
0
2
6
ESWHs
5
0
0
1
6
Battery
0
5
0
1
6
Floor heating
3
0
1
1
5
Ventilation
1
1
0
0
2
Cooling systems
0
2
0
0
2
Heat panels
2
0
0
0
2
District heating
1
0
0
0
1
Electric radiators
0
0
1
0
1
Electric boiler
0
0
0
1
1
Data centre
0
0
0
1
1
Aggregate
0
1
0
0
1
Refrigerator/­freezer
0
1
0
0
1
In some of the initiatives, the type of household appliance was not specified. These are not included in the table above.

Norway country sheet

Country context

The primary driver for flexibility in Norway is the lack of capacity in the high voltage grid, which prevents electrification of both existing and new industries, as well as the transport sector. Furthermore, large volumes of distributed PV are expected to be installed over the next few years, which can cause more frequent voltage disturbances in the low-voltage grid. Addressing these issues through grid reinforcements is often costly, highlighting the need for enhanced flexibility usage.

Queue management

Queue management for grid connections operates on a "first-come, first-served" basis. For capacities under 5 MW, no capacity availability assessments need to be conducted, ensuring no waiting time for smaller customers. For larger capacities (≥ 5 MW or ≥ 1 MW in specific areas), approval from the TSO is required. Projects demonstrating maturity, with defined timelines, licensing, and financing in place, are prioritised in the approval process. As of 2023, 11.5 GW of consumption requests were in the queue, of which 5.2 GW were mature projects. For production, 9.5 GW of capacity was queued, of which 1.8 GW were mature projects.

Current use of flexibility

The TSO employs balancing markets that engage large consumers and producers. The DSOs have initiated several flexibility pilots, but they still have to reach commercial maturity. Conditional connections and interruptible loads are in use on all grid levels for wind and hydro power. Similar arrangements for demand are slowly being implemented, but are still limited in comparison.
Previously, the TSO offered discounted tariffs for DSOs that provided interruptible loads to address significant grid disturbances. These arrangements were discontinued in 2021. Some DSOs do, however, have interruptible contracts with customers.
For end-users, grid tariffs are structured differently for small and large customers. For small customers, the grid tariff comprises a capacity and variable component. Most grid companies implemented a new grid tariff model in 2022 for households and businesses with a yearly consumption < 100 000 kWh to motivate these consumers to use electricity in a “smarter” way. The incentive to lower consumption peaks lies in a fixed monthly charge, which in most grid areas is determined by the average of the consumer’s three highest daily maximum hourly consumptions within the previous month. A daily peak is defined as the hour with the highest electricity consumption within 24 hours. Customers can therefore save money by avoiding high electricity usage at the same time / within a single hour during the day. The variable component is based on the consumer’s actual consumption and may vary depending on the time of use. In 2024, the Norwegian Energy Regulatory Authority (RME) was tasked by the Ministry of Energy to evaluate the grid tariff model through two subprojects. Key findings from the first project
RME (2024)
 are
  • 74 out of the 77 grid companies mapped use the capacity-based charges to calculate the fixed charge. There are variations in how the tiers of the capacity models are structured
  • 71% of grid companies differentiate the variable energy component between day and night, while 79% differentiate between weekdays and weekends.
Large consumers (> 100,000 kWh/yr) often have more complex tariff structures than households. The tariff includes an energy component and a fixed component and may also include a capacity charge. The structure of each of these components varies depending on the grid company in question
Elhub (2021)
.

Context affecting the adaptation of new flexibility

As of 2024, there are approximately 85 grid companies in Norway. These companies manage various grid levels, from high-voltage transmission grids to low-voltage distribution networks. The TSO, Statnett, is responsible for the high-voltage transmission system, while regional DSOs manage the regional and local grids, which again consist of both high and low-voltage networks. The size of the grid companies also varies significantly. The smallest grid company has a few thousand customers, while the largest DSO, Elvia, has more than 900,000 customers.

Smart metering and data hub

All Norwegian electricity consumers have a smart meter (AMS) installed. The meters offer two-way communication between the metering point and the DSO and register electricity consumption on an hourly basis, that is automatically sent to the DSO. The next generation of smart meters, AMS 2.0, is expected to be rolled out over the next ten years.
Through the smart meter, the consumer also has the option to receive time-of-use information about consumption and prices. To receive this information, the HAN port must be activated. The HAN port is a physical port on the smart meter that, by default, is closed for use. Before it can be used, the customer must ask the DSO to activate it. This is usually done remotely through the DSO’s data systems. On a national level, only a few per cent of customers have activated their HAN ports.
Activation of the HAN port is in many instances a prerequisite to utilise smart appliances in households. By connecting external reading equipment to the HAN port, the customer can access real-time information about their own electricity consumption. This information can be used by smart appliances to adjust the customers’ electricity consumption. Multiple commercial providers offer services based on information from the HAN port. Other providers can utilise consumption data directly from the appliances to monitor and optimise their usage based on different price signals.
The customers can view their historical data in the data hub, Elhub. The customers can also give third parties permission to access their data through the hub.

Current utilisation of DSR in Norway

Amongst the Nordic countries, Norway has conducted the highest number of flexibility projects. A total of 20 flexibility initiatives were identified in our mapping. The initiatives primarily focus on demonstrating and validating flexibility potentials from different end users and appliances, and the technical solutions necessary to realise flexibility from these sources. In some projects, the main goal is to solve specific grid-related issues through tariffs, while others focus on bilateral agreements with larger customers and technologies that allow for more dynamic grid utilisation.
There are also variations amongst the projects in terms of what type of flexibility resources they aim to activate and what value chains they propose to do so. NorFlex/EuroFlex focus on a pure market-based approach and aims to build a working marketplace for all types of demand-side flexibility services, including household appliances. ByggFleks and BattFlex, on the other hand, primarily focus on specific building and household appliances and direct activation of assets without a marketplace to mediate a transaction.

Sweden country sheet

Country context

The future electricity grid in Sweden, as well as other Nordic countries, will feature a higher share of small-scale variable electricity production, a higher degree of electrification, and thus an increasing need for flexible resources to keep the grid balanced. Other than flexibly dispatchable electricity production and energy storage, demand side flexibility will be needed to fulfil this task. Several of Sweden’s around 170 DSOs have already seen increased capacity challenges in their local and regional grids, and many foresee similar problems in the future.

Smart metering and data hub

The rollout of smart meters was finished by January 1st, 2025. Requirements for smart meters include 15-minute data logging, remote data collection and updates, and an open standard customer interface. For this, a HAN port is often used, but other solutions may be applied as well: The relevant statute
 merely demands an open standard customer interface, which the DSO is only allowed to activate if requested by the customer.
Sweden’s participation in defining a common data hub has been on hold since 2020 due to an unclear legislative background.

Queue management

The management of connection queues is defined in the Swedish Electricity Act (Ellagen), which requires grid concession owners to connect applicants objectively and non-discriminatorily, which is oftentimes done in a first-come, first-served manner. However, the Swedish TSO also gives non-binding recommendations to DSOs on how project maturity should be considered when handling the connection queue.
 In 2024, a common set of industry recommendations on the topic was published by Swedenergy, the interest organisation for Swedish energy companies.

Current utilisation of DSR in Sweden

The Swedish TSO Svenska Kraftnät manages and operates several ancillary services markets, where both larger and aggregated smaller FSPs can participate. Svenska Kraftnät has also been an active participant in the local flexibility market Sthlmflex, see Chapter 3.6. Several DSOs have since then been engaged in local flexibility markets, some of which are analysed below. The main issue these markets are supposed to solve is local bottlenecks in local and regional grids, but also production peaks.
 To facilitate a more flexible grid use, the TSO employs joint subscriptions to its grid (“Summaabonnemang”), which enables moving capacity between different connection nodes. In the special case of Sthlmflex, the exchange of transmission capacity subscriptions (“Abonnemangsväxling”) between connection nodes was made possible, enabling DSOs to purchase flexibility services both in their own and other regional grids.
The TSO also offers temporary subscriptions to its grid, which can be activated by the DSO to cover peak loads. However, this is only possible in the event of an available surplus TSO grid capacity and can thus not be guaranteed.
End-user grid tariffs for small consumers are not uniform: Power-based tariffs are obligatory to be introduced until 2027, with many companies already introducing a power component earlier than that. DSOs enjoy a high degree of freedom in designing these tariffs.

Selection of case studies

The first larger pilot in Sweden was CoordiNet (2019/20), developed within the Horizon 2020 program and with local markets in Uppsala, Skåne, Gotland, and Jämtland/Västernorrland. The market platform used in this project, SWITCH, was mainly developed by E.ON, which chose to develop further local markets as CoordiNet ended.
Another project, BeFlexible, was started after the end of CoordiNet and builds upon its results.
 ​
Sthlmflex was operational from 2020/21 and in part intended as RnD project to assess, among others, different market designs and the effect of standardised communication standards. As of winter 2024/25, no trade is foreseen to take place on the market anymore. As a lot of data and valuable lessons learned are available for this project, it was chosen as a pilot case study.​
Just as Sthlmflex, Effekthandel Väst uses NODES as the market platform, but focuses on solving potential future grid issues, as opposed to pressing current ones. The market was started in 2022 and thus had the chance to use the first learning from Sthlmflex. To analyse these, and because Effekthandel Väst actually left the pilot stage, it was chosen as the second case study.​
Of the above-mentioned CoordiNet project, Swedish grid company E.ON chose to continue some markets and added several more, reaching a total of 9 different market areas to date. In 2023, Energimarknadsinspektionen concluded that current flexibility markets are in an early stage and cannot be regarded as completely functioning yet. However, the underlying data for this statement is around 2 years old by now, and the expansion of E.ON's markets was a reason to choose these as a collective case study.​

Denmark country sheet

Country context

The primary drivers for flexibility in Denmark are the increasing electrification of district heating
A Transition Perspective on Demand-Side Flexibility in the Integrated Energy System Insights from the Danish ISGAN Annex 7 Project 2017-2021
, the growing demand from the transport sector, and new industrial loads. Additionally, the significant expansion of decentralised renewable energy sources poses challenges for the operation and development of the electricity grid at all voltage levels. These challenges vary among DSOs, depending on regional differences in consumption and generation patterns.
Electricity consumption in Denmark is expected to grow by 65% by 2030 compared to 2020
Danish Energy Agency, Development and Role of Flexibility in the Danish Power System 2021
, primarily driven by the transition to electric solutions in heating and transport. Decentralised generation has also increased, with annual renewable energy production reaching 19 TWh in 2020
Green Power Denmark, Elnet til meget mere – Analyse, 2023
, creating a greater need for adaptation in local grids.

Trends and development

Electrification of district heating has added approximately 400 MW of flexibility capacity from electric boilers and large heat pumps between 2015 and 2020. These units can deliver up to 1,000 GWh of heat annually and are actively used to absorb surplus production from wind and solar energy.
The electrification of the transport sector, including the deployment of electric vehicles and charging infrastructure, creates new demands on the distribution grid. Smart charging has become a key method to reduce peak loads and make better use of surplus production from renewable energy sources.
The growing share of local wind and solar energy increases the need to manage variable energy flows and bidirectional power flow in the electricity grid. This requires optimisation of local grid capacity and more precise monitoring of grid loads.

Past experiences and current approach

In the years between 2005–2015, Denmark explored the potential for establishing local markets for flexibility through pilot projects such as EcoGrid and DREM. These experiences demonstrated that economic incentives alone, especially at the household level, were rarely sufficient to significantly change consumption patterns without advanced automation. Local flexibility markets were deemed complex and economically challenging to scale.
More recently, Denmark has focused on structural solutions. Limited grid access requires new connections to reduce or disconnect consumption during peak situations, minimising the need for grid expansion. Time-differentiated tariffs have been introduced to encourage shifting consumption away from high-load periods.

Current utilisation of DSR in Denmark

Denmark’s demand-side response (DSR) strategy has evolved through both structural measures and pilot projects, focusing on integrating flexibility to address grid challenges. However, the implementation of DSR in Denmark remains constrained by technical, regulatory, and practical barriers.
Danish Energy Agency, Analyse af markedsudviklingen for fleksibilitet i lokale elnet 2021
Denmark employs time-differentiated tariffs to encourage consumers to shift electricity usage to off-peak hours.
Energinet, Possible solutions for electricity needs – Energinet's long-term development plan 2022 – Solution catalogue
 These tariffs are designed to reduce grid strain during peak demand, providing economic incentives for more balanced electricity consumption patterns. A notable example is the exploration of tariff harmonisation between TSOs and DSOs to ensure cost-reflective and transparent pricing mechanisms. Such efforts aim to optimise socio-economic grid expansion and promote demand-side flexibility across various grid levels.
The concept of conditional grid connections has also been implemented to manage demand-side flexibility
Energinet, Green Power Denmark – Net til Tiden, 2023
. New connections, including large-scale energy users such as electric vehicle (EV) charging infrastructure and industrial facilities, often face restrictions that allow grid operators to limit consumption during periods of high demand. These measures reduce the need for immediate grid upgrades while ensuring operational stability.
Several pilot projects have explored the feasibility of market-based local flexibility solutions. For instance, a project on Lolland tested geographically tagged bids in the existing balancing market to manage local congestion. The results revealed both potential and challenges, including issues with communication protocols, market liquidity, and the integration of local flexibility into existing market structures. Such projects have highlighted the need for further development of IT systems, better communication frameworks, and standardised operational procedures.
The FUSE project and other initiatives on smart EV charging have aimed to demonstrate the potential of integrating EVs as flexible grid resources. While these projects showed technical viability, they also uncovered significant barriers, including the lack of standardised data exchange protocols, high costs for advanced metering systems, and challenges in verifying billing accuracy, as verified in an interview with DTU Electro. These factors have prevented widespread adoption of smart charging solutions.
In practice, DSR in Denmark remains heavily reliant on structural measures, such as dynamic tariffs and restricted grid access, rather than fully developed local flexibility markets. Distribution system operators (DSOs) and the transmission system operator (TSO) continue to explore ways to enhance coordination and unlock the full potential of demand-side flexibility. However, significant work is required to overcome barriers, particularly in aligning regulatory frameworks, improving data accessibility, and addressing technical constraints.
Denmark’s approach reflects a pragmatic progression towards integrating DSR while balancing technical feasibility and socio-economic considerations. Continued investment in technology, regulatory development, and stakeholder collaboration will be crucial to further advancing demand-side response in the Danish electricity system.

Need for flexibility

DSO perspective
Increasing electrification, including heat pumps and EVs, puts pressure on grid capacity, while integration of decentralised renewable energy sources like wind and solar causes congestion and local bottlenecks
Energistyrelsen, Analyse af markedsudviklingen for fleksibilitet i lokale elnet 2021
.
Flexibility is prioritised to avoid costly grid expansions and to address voltage instability challenges in areas with high penetration of distributed generation.
Queue management
Connections are managed on a first-come, first-served basis, but prioritisation may apply for mature projects with secured financing and necessary permits.
For larger connections or those impacting grid stability, coordination with the TSO is required.
The TSO reports that it increasingly uses flexibility solutions to accommodate new connections and reduce delays in areas with congestion or limited capacity.
Applications to the transmission grid
There are no available data on the average waiting time for TSO connection. Data concerning TSO grid capacity is related to production only.
The agreement for grid connection is estimated to be 12 months or less. However, this is purely the agreement and not concerning the actual connection.

Current use of flexibility

TSO balancing markets: Energinet uses European platforms like PICASSO (aFRR) and MARI (mFRR) to manage imbalances in the transmission grid, integrating flexibility from large producers and industrial consumers.
DSO flexibility mechanisms: Danish DSOs are developing solutions like conditional connections in congested areas and pilot projects to leverage local flexibility and avoid costly grid expansions.
Interruptible loads: Conditional connections and interruptible contracts are increasingly used to manage high-demand periods, with some DSOs offering discounts to incentivise flexible consumption.
Local flexibility projects: Initiatives focus on integrating decentralised resources into flexibility markets, creating incentives for small and medium-sized actors to contribute to grid stability.
End-user grid tariffs
Incentive programs and tariffs: Energinet's previous discount program for interruptible loads ended in 2021. New efforts centre on dynamic tariffs and market models to encourage flexible energy use and production.
Context affecting the adaptation of new flexibility
Number of DSOs: 34 DSOs currently operate in Denmark, primarily managing low- and medium-voltage grids (<100 kV), with fewer handling high-voltage or transmission-connected grids.
Smart metering
  • 100% rollout completed, providing 2-way communication.
  • 1-hour time resolution is standard.
  • Customers can access historical data online.
  • Both summation meters and phase meters are used for billing purposes, ensuring accurate energy measurement.
Datahub: Fully implemented by Energinet, allowing third-party access to customer energy data with explicit customer consent.

Finland country sheet

Country context

Need for flexibility from the DSO’s perspective

The main drivers for flexibility are a lack of capacity in the high and mid voltage grids for electrification of district heating, both existing and new industry, and transport. The increase in decentralised power generation affects the grid development in all grid voltage levels. The growth in the number of active customers participating in the energy market also increases the capacity needs. The situation varies significantly between DSOs.
For the whole of Finland, transmitted energy in DSOs’ distribution networks is estimated to grow by nearly 8,000 GWh, almost 15% from the 2021 level until 2031. The percentage growth for DSOs operating in urban environments is estimated to be about 20%, for DSOs with a predominance of conurbation areas about 13% and for DSOs with a predominance of sparsely populated areas about 6%. Energy received from customers is projected to decrease for DSOs operating in urban environments, but to double for DSOs operating in predominantly conurbation areas, and triple for DSOs operating in sparsely populated areas over ten years. In the future, electricity storage and various flexibility solutions and services are expected to increase in importance and be an integral part of grid maintenance and management, which must be taken into account in grid development
Summary report of the 2022 electricity distribution network development plans.
.

Queue management

The first-come, first-served principle is used for new grid connections in the transmission grid. Other formal principles for queue management are not in use. The queue management has been possible to organise by negotiating so far.
TSO connection applications (waiting)
There is no available data on the average waiting time for TSO connection. In total, Fingrid has received approximately 400 GW of requests to connect to the transmission grid for electricity production, approximately 60 GW for electricity consumption, and approximately 20 GW for electricity storage
. Fingrid’s main challenge is the transmission grid capacity from northern and central to southern Finland and from western to southern Finland.

Current use of flexibility

TSO’s mechanisms for transmission management: Fingrid uses mFRR energy bids for congestion management by ordering mFRR special regulation. From 2023, Fingrid has made it a permanent practice to trade on the intraday market to perform the congestion management measures required by cross-border interconnector faults (more info)
. According to the analysis of the case study in the trial period, the procurement of energy from the intraday market enhances the operational security, is fluent to execute by the grid control room operators, and the expenses are reduced compared to procurements from the balancing market.
At the end of 2024, Fingrid introduced a transmission management agreement (bilateral agreement), which agrees on the flexibility of production or consumption for the needs of transmission management. The agreement sets out the terms of flexibility in advance before the situation arises. Transmission management agreements are suitable for capacities of at least 10 MW, which are not technically compatible with the balancing markets (more info)
.
There are currently no market-based flexibility services available for DSOs. The amount of FSPs’ (aggregators’) flexible capacities suitable for local flexibility is still quite limited and widely distributed. The first live pilot marketplace of local flexibility will start in the winter of 2025. The target is to harness capacities, which are not technically compatible with the balancing markets, for the use of transmission management of the DSO (Helen Electricity Network) and TSO.
There are no rules on conditional/flexible connections in the Finnish legislation. Some DSOs have applied temporary flexible connections. The first implementation of a flexible connection (temporary dynamic connection) was implemented in 2023 by DSO (Caruna) for the connection of an electric boiler
. TSO offers temporary, flexible connections as an option
. Flexible connections have not yet been implemented in the transmission grid.
The national tariff structure does not allow dynamic network tariffs. Different tariffs according to the time of use and peak consumption are implemented (e.g., night and day tariffs and power tariffs), but not according to the congestion situation. Interruptible tariffs have not been implemented.
At the end of 2023, electricity exchange-based contracts accounted for 31 per cent of all electricity retail sales contracts.
End-user grid tariffs
For small customers, DSOs use volumetric (eur/kWh) and fixed charge (eur/month). Some DSOs have a power capacity charge (eur/kW) also for customers with the main fuse size ≤ 63A. For large customers, the DSO tariffs include volumetric (eur/kWh) and fixed charge (eur/month), power capacity charge (eur/kW), and reactive power charge (eur/kvar). Tariffs and their structures vary significantly depending on the DSO. The government proposal suggests the harmonisation of distribution network tariff structures.

Context affecting the adaptation of new flexibility

Number of DSOs
There are a total of 77 DSOs in Finland
. The 15 largest DSOs cover approximately 70 per cent of distribution networks, electricity users, and the companies' turnover
. The smallest DSOs operate in one municipality and serve a few thousand customers.
Smart metering
The roll-out status of smart meters with one-hour resolution is 100 %. The next generation smart meters are called AMR 2.0 meters. All meters must have a 15-minute resolution by the end of 2028. A control relay is included in AMR-2.0 meters. All meters must include the HAN port by May 2031. Web-based access to historical data (15 min resolution) is accessed from Fingrid’s data hub and from DSO’s service.
Data hub
The centralised information exchange system (datahub) for the electricity retail market was commissioned on 21.2.2022. The system is maintained by Fingrid Datahub Ltd, a subsidiary of Fingrid. Datahub is used by approximately 80 DSOs and approximately 80 electricity sales companies, and more than 20 service providers.
The Datahub service includes third parties that provide services to DSOs, electricity suppliers, and end customers through delegations and authorisations. Third parties must be authorised to access the data, either on delegation from an electricity supplier or DSO or with the authorisation of an end customer. The end customer gives the authorisation through the customer portal provided by the data hub
Guidance for third parties within the scope of the Datahub service. Fingrid Datahub. 22.6.2023.
. The authorisations and delegations are explained further in Electricity retail market business process in Datahub
Fingrid (2023): Electricity retail market business process in Datahub. 6.7.2023, Chapter 3.9
.

Current utilisation of DSR in Finland and chosen cases

In Finland, only a few DSOs have so far carried out pilot demonstrations for local DSF. The use of flexible electricity consumption as an alternative to expanding the capacity of the distribution network is still in its early stages, but the first steps are being taken, e.g., towards the local flexibility markets.

Chosen case studies

The chosen two case studies from Finland represent live implementations, which are both in the preparation phase to some extent. The method to map barriers and opportunities here has reflected the requirements connected to the case studies of FSPs’ experiences and capabilities with a focus on home appliances.
1. The first live pilot marketplace in Finland starts in the winter of 2025 by Helen Electricity Network and Fingrid. Pilot tests the functioning of the local DSF market, products, and the market’s liquidity. Prior knowledge for the marketplace gained from technical pilots with simulated market design in INTERRFACE and OneNet projects.
2. The DSF possibilities of smart electricity meter control relays. As a pilot case: DSO Elenia’s experiences of DSF capabilities of home appliances connected to electricity meters’ load control relays’. The possibilities of load control relays were piloted in 2018-2020 with 76 household-clients in Elenia’s grid. Elenia launched the service for controlling the relays automatically according to spot prices in 2024 for all households with loads connected to the new AMR 2.0 meter. The loads connected to the relays are typically ESWHs and electric underfloor storage heating. In the near future, the load control relays will be commercialised for the use of FSPs. The load control of AMR 2.0 meters has significant DSF potential suitable for the evolving local DSF markets (referring to case study 1).

The other mapped initiatives, which included local DSF

In addition to the chosen case studies, the following flexibility initiatives, including local DSF, were mapped:
  • OneNet project (2020-2024, Horizon 2020): The scope of OneNet was to create an architecture that enables the whole European electrical system to operate as a single system in which a variety of markets allow the universal participation of stakeholders regardless of their physical location. The Finnish technical demonstration tested the market-based and coordinated flexibility procurement with relevant network situations for the Finnish environment to learn how congestion can be solved using flexibility and how the combination of flexibility from DSO and TSO networks interacts. Demonstration showcased the functioning of the proposed market design. More information about the Finnish case study can be found on the project’s website (7.6 Final Northern Cluster demonstrator evaluation report)
    .
  • INTERRFACE project (2019-2022, Horizon 2020): The Finnish operational congestion management demonstration piloted the end-to-end IEGSA (Interoperable pan-European Grid Service Architecture) process in the planned scenarios to validate its functioning in different situations. The IEGSA solution provided the FSPs a possibility to manage their resources, offer them to markets through the connected market operator, and get activation requests from the respective marketplace. For the SOs, the solution introduced a possibility to procure flexibility in a coordinated manner based on the location of the resources.
    The project included a technical congestion management demonstration in a simulated grid model in Elenia’s (DSO) grid. FSP (Kapacity.io) aggregated heat pumps in 6 residential apartment buildings. The demonstration included TSO-DSO coordination in grid disruption situations. The project also demonstrated the use of intraday market for TSO’s congestion management. Intraday pilot case proved that congestion management can be part of an international and liquid intraday market with relatively small system-level exceptions and modifications. More info on the report on Fingrid’s website.
  • SysFlex project (2017-2021, Horizon 2020). The project aims to offer new solutions for the integration of consumption and production flexibility to the electricity market to enable more wind and solar power to the system. The Finnish demonstrations connected to the local DSF:
    • The demonstration showcased the increase in control ability of reactive power by a market-based approach, where inverter-based resources connected to the distribution system are used as controllable assets. This development benefits the DSO and opens opportunities to asset owners and aggregators. The project demonstrated a reactive power market solution. The presented approach builds upon the development of various market-based flexibility services. The development of these applications is challenging for the FSPs, since controlling various kinds of assets requires various technical solutions that may be case dependent
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    • Project included a case study of the electric vehicle charging control in office buildings. The case study was conducted in an office with eight
    • EV charging points and a battery energy storage system (BESS). The BESS's peak shaving application was successfully applied to cut the increased power demands
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