How local energy markets can tackle volatile prices through sector coupling
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The rapid growth of renewable energy has led to volatile prices and challenges for the electricity grid. Sara Haghifam’s doctoral dissertation at the University of Vaasa proposes a new model for local energy markets that integrates electricity and heat systems.
The rapid growth of renewable energy and the electrification of heating have made the power grid increasingly complex to manage. Currently, surplus renewable energy is often curtailed because there is not enough flexibility in the system to store or redirect it. The lack of flexibility is also a primary driver for high spot prices.
Sara Haghifam’s doctoral dissertation in electrical engineering addresses this by proposing local energy market platforms that allow different sectors to work together. The backbone of her research involves sector coupling, which means connecting electricity and heating through Power-2-Heat (P2H) technologies such as electric boilers and heat pumps.
– Sector coupling ensures that renewable energy is not curtailed during periods of high production and is available when demand peaks. These platforms enable the end users to benefit from cross-sector trading and higher renewable utilisation, says Haghifam.
Unlike traditional models, these energy trading platforms are network-aware, meaning they factor in the physical limitations of the local grid to prevent overloading.
– Accounting for grid limits is the way to ensure that local energy trading remains reliable. My research provides a framework to help local energy communities and national markets work together, Haghifam adds.
Coordination reduces costs and manages grid constraints
A key element of this coordinated market model is the use of Power-to-X (P2X) technologies. These solutions make it possible not only to shift energy between sectors, but also convert or store surplus electricity and, when needed, turn it back into electricity.
– In practice, this means that excess wind or solar power generated during low-demand hours can be converted into heat through electric boilers or stored in hybrid energy storage systems and used later, Haghifam notes.
Although technologies for energy conversion are developing, coordinating these different sectors remains not only a technical hurdle but also a question of regulation.
– Using these local market structures will help us reach carbon neutrality targets, but the regulatory framework and the specific roles of grid operators require further debate, Haghifam states.
Dissertation
Haghifam, Sara (2026). Sector-coupling and P2X2P Enabling Energy Market Structures and Related Solutions for Future Flexible Energy Systems. Acta Wasaensia 579. Doctoral dissertation. University of Vaasa.
Public defence
The public examination of M.Sc. Sara Haghifam’s doctoral dissertation ”Sector-coupling and P2X2P Enabling Energy Market Structures and Related Solutions for Future Flexible Energy Systems” will be held on Monday 16 March 2026 at 12at the University of Vaasa, auditorium Kurtén.
It is possible to participate in the defence also online:
https://uwasa.zoom.us/j/67838417806?pwd=bQ2SxdBuQiVWdcrBIZF1nuevuqVmrk.1
Password: 443968
Associate Professor Zacharie De Gréve (UMONS) will act as opponent and Professor Hannu Laaksonen as custos.
Tietolaatikko
Further information
Sara Haghifam was born in 1991 in Iran. She completed a Master’s degree in Electrical Engineering at the University of Tabriz in Iran. Haghifam currently works as a Power Market Analyst at Fortum Oy.