TL;DR:
- Exaum, a Finnish energy company, has launched a 1-MW pilot project at the Karhula Industrial Park, employing AI for grid balancing.
- The AI-powered technology optimizes electricity production and consumption, facilitating the integration of renewable energy sources.
- Finland’s transition to green energy is driven by factors such as nuclear power, wind, and solar, with a target of 51% renewable energy.
- Exaum’s pilot project benefits energy-intensive industries with real-time access to excess power generation.
- The successful implementation of AI-driven demand response has the potential to reshape the energy market.
Main AI News:
A pioneering energy consortium hailing from Finland has unveiled an ambitious pilot venture set within an industrial complex, positioning itself as a groundbreaking enterprise empowered by artificial intelligence (AI). Exaum, a company with its origins in 2021 dedicated to advancing renewable energy deployment, recently declared the inauguration of a 1-megawatt (MW) project as its latest stride in propelling heat-based power demand response technology. The endeavor, presently in progress at the Karhula Industrial Park, located approximately 80 miles east of Helsinki, represents a crucial facet of Finland’s transition to renewable energy sources, aiming to ensure near-instantaneous grid equilibrium amid the integration of wind, solar, and other intermittent energy assets into the national electricity grid.
Henri Yoki, the founder and CEO of Exaum, articulated, “The shift towards adopting renewable energy sources in Finland, as well as worldwide, necessitates a paradigm shift in the way we manage and stabilize power distribution across the grid. Unlike the traditional reliance on fossil fuels, a green energy supply demands an infrastructure designed to consistently surpass the demand. Consequently, during periods of low wind activity, there must still be adequate generation to meet the demand. Conversely, during peak wind conditions, when generation is at its zenith, supplementary consumption should be available. In essence, within the framework of the green energy transition, consumption is pivotal, but it must align precisely with the grid’s requirements. This prompts the exploration of innovative methods to sustainably consume energy for maintaining equilibrium.”
Exaum’s groundbreaking innovation focuses on harmonizing electricity production and consumption throughout the power grid, a matter of concern as the prevalence of intermittent renewable energy surges. The technology empowers the transmission system operator to calibrate and regulate electricity utilization within the grid while preventing abrupt shifts in production from causing power outages or grid instability. It strategically allocates surplus power production to areas of high demand, including industrial heating—an area of critical importance in Finland.
According to the 2023 overview of Finland’s energy mix by the International Energy Agency (IEA), “Thanks to its nuclear reactors and significant domestic production of renewable energy, primarily derived from forestry solid biomass, hydro, and wind generation, Finland maintains one of the lowest levels of dependence on fossil fuels among IEA member nations.” The report also highlights that “Finland relies entirely on imported crude oil, natural gas, and coal, with a high energy intensity per capita, driven by a substantial heavy industry sector and substantial heating needs due to its frigid climate.“
Yoki underscored the industrial sector’s demand for electricity, making the Karhula Industrial Park an ideal location for the pilot project. He explained, “It was a mutually beneficial arrangement,” noting that the industrial complex “could access cost-effective heating, while Exaum gained an industrial environment to conduct detailed experiments on the technical aspects of the infrastructure.” Yoki disclosed that the project’s construction costs constituted a portion of Exaum’s €1 million investment in AI-guided, industrial-class, 1-MW-plus assets. “The project has enabled the industrial park to benefit from cost-effective heating, reducing expenses to zero or one-third of their typical heating costs, as the surplus heat generated contributes to grid-balancing capacity delivered to the transmission system operator.“
Fingrid, the Finnish transmission system operator responsible for balancing the power system, electricity generation, and consumption in real-time, faces the challenges brought about by the energy transition. Tuomas Mattila, Balancing Markets Expert at Fingrid Oyj, commented, “The rise of wind and solar power production in Finland is driving the need for greater flexibility within the power system. This necessitates the exploration of additional flexible electricity production, consumption, and storage to ensure equilibrium between consumption and generation. We eagerly welcome new entrants like Exaum into the balancing markets, as fresh solutions and innovative thinking are essential to establish cost-efficient markets for the future.“
Maintaining equilibrium within the electricity grid is of paramount importance as Finland strives to augment its carbon-free energy sources and decarbonize the national economy. In 2023, Finland celebrated the commissioning of Europe’s first new nuclear reactor in over 15 years—the 1.6-Gigawatt Olkiluoto 3 reactor, which commenced operations in April. (Olkiluoto 3 earned the prestigious 2023 POWER Top Plant award in the nuclear power category.) Nuclear power currently contributes around 40% of Finland’s electricity generation, according to the IEA. Finnish authorities have expressed their intent to bolster both onshore and offshore wind energy generation, along with solar power, with the objective of attaining a minimum of 51% of electricity from renewable energy sources (including biomass) in compliance with the European Union (EU) Renewable Energy Directive.
Exaum’s pilot project aims to empower energy-intensive industries by providing access to surplus power generation in real-time. Yoki emphasized, “The optimal application of AI in the power sector lies in forecasting various asset operation parameters and energy market dynamics to provide the essential data for software-driven performance optimization algorithms. Industrial heating represents one of the avenues for utilizing excess power, and it necessitates a heightened focus on managing scenarios involving strong winds and excessive sunshine, which result in surplus generation. This management entails aligning consumption with the grid’s requirements, ensuring timely activation and deactivation. This insight was the driving force behind the inception of Exaum and its innovative solution.”
Jorma Hyvänen, a business owner in the Karhula Industrial Park, expressed his group’s enthusiasm for Exaum’s system. He remarked, “We were highly receptive to this innovative approach to heating our warehouses and facilities. Naturally, we are continually exploring ways to operate our business more sustainably, but this decision was predominantly driven by economic considerations. During the winter, district heating costs can be substantial, so we are consistently on the lookout for superior alternatives. It’s heartening to observe that conducting responsible business operations aligns seamlessly with environmental benefits.”
Exaum’s leadership has disclosed its intentions to conclude the Karhula pilot and expand the solution’s reach within Finland. They intend to compile runtime experience and data, refine automation, and advance the system for larger-scale deployments. Panu Ahola, Chief Technology Officer at Exaum, asserted, “The success of AI-driven power demand response in this context paves the way for its application well beyond our present focus on industrial heating.“
Conclusion:
Exaum’s AI-powered grid balancing pilot in Finland represents a significant advancement in the integration of renewable energy sources and grid stability. With the transition to green energy in full swing, this innovative solution can potentially revolutionize the energy market by offering efficient demand response and sustainable consumption options, ensuring a seamless transition to a cleaner and more sustainable energy future.
