Assessing the environmental effects of digitally enabled, small-scale energy flexibilities: A consequential, multi-level life cycle approach

The digitalization of small-scale energy technologies located in households is being increasingly promoted to enhance flexibility in future power systems with high shares of intermittent renewable energy sources. This study assesses the environmental impacts of such digitalization for Photovoltaic-Battery Storage Systems (PVBSs), Electric Heat Pumps (EHPs), and Battery Electric Vehicles (BEVs) in Germany’s projected mid-term future energy system. Combining a multi-level, consequential life cycle assessment with the energy system model eTraGo and the associated eGon2035 data set, we evaluate both direct impacts from Information and Communication Technology (ICT) and indirect effects from changes in power plant dispatch, large-scale flexibility expansion, grid expansion, and small-scale technology usage from two perspectives. From a system perspective, the results indicate that ICT-enabled flexibility reduces greenhouse gas emissions and other environmental impacts by improving how renewable energy is used. However, these benefits are accompanied by increased burdens in terms of mineral resource depletion, freshwater eutrophication, and ozone depletion, primarily due to the production and operation of ICT and EHPs. From a household perspective, flexibility decreases climate impacts for BEVs and EHPs but increases them for PVBSs, while mineral resource use rises across all technologies. Overall, intensified digitalization for flexibility is not a sufficient standalone solution for climate mitigation, but can contribute up to 8.5% of the remaining emissions gap to Germany’s 2030 sector target, conditional on the underlying assumptions. Furthermore, it reveals a trade-off between environmental benefits and burdens. The findings highlight the need for complementary measures, circular strategies for ICT, and careful design of incentives to balance these trade-offs.