en.Wedoany.com Reported - A study by Lappeenranta-Lahti University of Technology (LUT University) in Finland shows that, with appropriate backup energy sources and demand-side flexibility measures, it is technically and economically feasible for data centers to use intermittent renewable energy sources such as wind and solar power to provide continuous baseload electricity.
The study notes that due to data centers' limited ability to adapt to fluctuations in solar power generation, they must have at least seven times the generation capacity required for baseload operation. This overconfiguration of solar or wind power to ensure continuous supply also leads to curtailment of excess electricity during peak generation periods. Furthermore, even with surplus capacity and battery storage, wind and solar power alone cannot guarantee uninterrupted power supply for data centers.
Altti Meriläinen, a junior researcher at LUT University, told pv magazine that geographic location is a key factor determining whether a data center can achieve profitability with 100% solar power plus battery storage. Citing a recent report from the International Renewable Energy Agency (IRENA), the researcher noted that the levelized cost of energy (LCOE) for baseload power based on photovoltaics and battery energy storage systems (BESS) can be below €100 ($115) per megawatt-hour at multiple global locations. LUT University's study focused on the Nordic environment, continuously supplying 1 gigawatt of renewable energy for two hypothetical data center scenarios: one with full baseload operation (8,760 hours per year), and another simulating the operational characteristics of a nuclear power plant with at least 8,000 equivalent full-load hours per year.
The model used in the study is an off-grid system comprising wind power, solar power, BESS, and backup power plants. Both configurations showed that backup power is crucial, and the location of renewable energy generation significantly impacts power supply costs. In the most favorable locations, LCOE could be 24% lower than in the least favorable ones, with LCOE for full-load continuous operation at approximately €100/MWh, dropping to below €80/MWh in the 8,000-hour-per-year scenario at the most favorable sites.
The study notes that the data center selected as the final use case has a simplified load curve with relatively constant power demand. The researchers did not model detailed operational behaviors such as cooling requirements or dynamic load changes, aiming only to analyze whether the Nordic environment can accommodate data centers powered by renewable energy.
Meriläinen told pv magazine that the research team is preparing a project with data center investors and operators called "Net Zero Energy Communities," which will expand and refine the study through real-world case analysis. LUT University Professor Samuli Honkapuro added to pv magazine that the study has sparked discussion in Finnish mainstream media, conveying key messages to policymakers, including exchanges with Finnish parliamentarians promoting legislative initiatives for data center grid connection requirements.
The researchers' work also emphasizes that when data centers adopt demand-side flexibility, the operating expenses of backup power plants can be reduced, but participating in demand response programs may also lead to greater curtailment of renewable energy generation. The article concludes that solar power generation is highly concentrated in summer, highlighting the importance of energy storage and balancing capabilities. Although the Nordic climate imposes strong seasonal limitations on renewable energy generation, renewable-based baseload systems can achieve cost levels comparable to nuclear power, reinforcing the argument that renewable energy can serve as a viable baseload option even in challenging high-latitude regions.
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