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The global energy system is undergoing a transformative change towards renewable energies. The share of Renewable Energy Sources (RES) and bioenergy in the world’s primary energy use has increased in the recent years. Based on the EU Roadmap 2050 energy plan, the share of renewables in final energy use in Europe will reach at least 55%, a 45% increase from its share today.

Due to the intermittent energy supply from renewables, their high penetration in energy systems can jeopardize the system flexibility, in terms of the balance between energy demand and supply. Lack of system flexibility could cause energy curtailments, increase system costs, or make renewables unreliable sources of energy. Moreover, the expansion of the renewable energy supply could influence the operational strategy of existing energy systems like Combined Heat and Power (CHP) plants. Therefore, the current study focuses on increasing system flexibility of a CHP-dominated regional energy system with increased renewable power supply. Two flexibility options, including a polygeneration strategy and large-scale energy storage using power-to-gas technology, were modelled. The system is then optimized using a Mixed Integer Linear Programming (MILP) method to investigate the production planning of CHP plants in a renewable-based energy system with higher level of flexibility. Different technical and market factors could influence the results of the optimization model, and thereby system flexibility. Thus, the study is carried out under various scenarios for better understanding of the future challenges regarding energy supply, market prices, and climate change.

The investigation provides an increased knowledge of production planning for the existing CHP plants with increased interaction with renewables. Based on the overall observations of this thesis, the proposed power storage system contributes to the increased system flexibility. However, the study suggests polygeneration and integration strategy as the optimal pathway to increase RES penetration and to support system flexibility, considering future energy developments and changes in energy demand and supply.