Synthetic Natural Gas Production and Utilization in the North European Power System in 2050

Power-to-gas technology (P2G), which produces synthetic natural gas (SNG), has been proposed as one way to overcome the variability of variable generation. Its advantage is the almost unlimited storage capacity but it is encumbered by low efficiency. In this study, the capacity investments in power and heat generation until 2050 and the hourly operation of the power system in Nordic countries and countries surrounding the Baltic Sea were studied. The focus was on nearly 100 % renewable power and district heat sectors. In addition, some of the energy demand of the transportation and industrial sectors was provided by SNG. P2G as well as other balancing technologies such as electric vehicles, heat storages and pumped hydro plants were also included in the simulation. Sensitivity analysis was performed for PV and P2G investment cost