The barriers, and hence also policies, to energy system flexibility are numerous. In this brief, we focus on policy recommendations for two important barriers to flexibility in the Nordic electricity market, namely insufficient market signals to some stakeholders and uneven market frameworks for different renewable energy resources.
We present seven major recommendations, which could mitigate the market barriers to flexibility. A central recommendation is to have better tariffs for electricity and grid use to promote flexibility. This would improve the coupling of access renewable power to other sectors such as heat, transport, and gas, which has a large potential for increased flexibility.