Authors: Claire Bergaentzle, Philipp Andreas Gunkel.
Publication date: 2022

This article captures the role of electricity grid tariffs in the flexible electrification of district heating in the Nordic region at the horizon of 2050, in a situation of limited and optimal interconnections. Optimization of electricity and district heating systems is performed using the Balmorel energy systems model. The results indicate how current volumetric tariffs limit investment and flexibility from power-to-heat technologies and seasonal thermal storage in district heating. We also demonstrate how the additional flexiblecoupling of district heating enabled by adapted grid tariffs affects investment and generation in the electricity sector through a ratchet effect.