Impact of demand flexibility on renewable energy integration, backup capacity, storage use and dispatchable generation: A case study for Portugal's 2030 National Energy plan

The ongoing electrification of energy consumption and the decarbonization of the electricity generation mix are being facilitated by new electricity loads, such as electrolysers for hydrogen production and electric vehicles (EVs), alongside with the growing deployment of renewable energy technologies such as solar and wind power. However, these non-dispatchable renewable technologies pose operational challenges for power systems, creating the need for increased storage solutions and effective demand-side management. In this context, leveraging the flexibility inherent in these emerging demand resources—such as electrolysers and EVs—is crucial for addressing the anticipated rise in electricity demand. This study evaluates the effects of flexible operation of electrolysers and smart charging of electric vehicles on renewable energy curtailment, backup capacity, energy storage systems, and dispatchable generation within the Portuguese power system, focusing on the 2030 horizon as outlined in the National Energy and Climate Plan (NECP 2030). Simulations conducted using the SWHORD simulator indicate that the flexible operation of electrolysers and EV charging significantly alleviates the pressure on energy storage systems, including pumped hydro storage and battery energy storage (BESS). Additionally, it eliminates the necessity for backup capacity and reduces reliance on natural gas power generation, leading to decreased generation costs and lower CO2 emissions.