The potential for variable resources to contribute to Svenska kraftnät’s ancillary services has increased in recent years. Concurrently, with the expansion of renewable energy resources in Sweden, the demand for actors to contribute to a more stable power system has grown significantly. The study aims to understand whether photovoltaic panels have the potential to contribute to frequency regulation and participate in the FCR-D down ancillary service. The study has been made in collaboration with the real estate company Vasakronan, and aims to investigate the economic potential of participating with their rooftop photovoltaic panels.

The thesis consists of a qualitative part where relevant actors were interviewed to gain a deeper understanding of the subject. The quantitative analysis involves examining production and price data. Three of Vasakronan’s facilities and their solar park were studied, and calculations were conducted to determine the profitability of acting as an ancillary service. Utilizing data from the three facilities, an aggregation of all 25 facilities in Uppsala was simulated. Three different scenarios were investigated with the first imposing no production requirements. In the second scenario, it was required that at least one-fourth of the installed capacity was produced, and in the final scenario, at least half of the installed capacity was required.

The primary obstacle in meeting these requirements for photovoltaic panels on rooftops is the capacity constraint, particularly in comparison to larger solar parks with significantly greater volumes. With lower capacity, revenues will decrease and there is greater uncertainty regarding guaranteed delivery. Consequently, the possibility of aggregating multiple smaller facilities becomes crucial to fulfill the requirements for ancillary services, as these plants can be pre- qualified as a group. Various sensitive parameters impact the revenue analysis, and the most significant challenge is the installation cost of the software. Another sensitive parameter is the prices on the FCR-D down market, as trends suggest a decrease in prices with increased market participation. However, there is a prominent potential for adjustments in several of the current requirements, given the dynamic balancing market. Therefore, the recommendation from the study is to continue investigating the possibilities of aggregating several smaller solar cell plants into a common unit. Considering that the foremost investment, the installation of the photovoltaic panel, has already been completed, participation in the ancillary service could to some extent be viewed as an extra income requiring minimal additional effort.