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Digital Energy Management for Electrified Industrial Furnaces: Demand Flexibility and Energy Storage at Volvo’s Skövde Plant (FLEXFURN)

Reference number
Coordinator Högskolan i Skövde - Högskolan i Skövde Inst f ingenjörsvetenskap
Funding from Vinnova SEK 8 267 290
Project duration September 2026 - August 2029
Status Ongoing
Venture Advanced digitalization - Industrial needs-driven innovation
Call Industrial flexible energy management

Purpose and goal

FLEXFURN develops and validates an AI-driven Energy Management System (EMS) that coordinates demand-side management, layered energy storage, and waste heat recovery at Volvo´s Skövde plant, enabling electrified furnace operation within existing grid limits. The goal is reducing peak demand reduction and cost savings, advancing the EMS to TRL 6-7 and delivering a transferable methodology for grid-constrained, electricity-intensive Swedish industries.

Expected effects and result

The project delivers a validated, full-scale industrial EMS (TRL 6-7) that cuts peak demand up to 30% and electricity costs 5-20% versus an unmanaged baseline, while producing a decision-support tool for demand, tariff, and flexibility forecasting, plus a techno-economic sizing methodology for layered storage and waste-heat integration. These results remove a key electrification barrier, strengthen Swedish AI-EMS expertise, and yield transferable methods for heavy industry.

Planned approach and implementation

FLEXFURN runs across six work packages. WP1 covers project management. WP2 develops demand side management scheduling for furnaces, EVs, and HVAC. WP3 assesses layered storage sizing (supercapacitors, BESS, hydrogen). WP2-3 outputs feed WP4, integrating the AI-driven EMS with forecasting and grid signals. WP5 evaluates performance via KPIs and scenarios. WP6 disseminates results. University of Skövde leads while Volvo, Vattenfall, and AI Sweden contribute across WPs.

The project description has been provided by the project members themselves and the text has not been looked at by our editors.

Last updated 18 September 2026

Reference number 2026-01027