Active participation of industrial enterprises in electricity markets - a generic modeling approach

Abstract

Industrial enterprises represent a significant portion of electricity consumers with the potential of providing demand-side energy flexibility from their production processes and on-site energy assets. Methods are needed for the active and profitable participation of such enterprises in the electricity markets especially with variable prices, where the energy flexibility available in their manufacturing, utility and energy systems can be assessed and quantified. This paper presents a generic model library equipped with optimal control for energy flexibility purposes. The components in the model library represent the different technical units of an industrial enterprise on material, media, and energy flow levels with their process constraints. The paper also presents a case study simulation of a steel-powder manufacturing plant using the model library. Its energy flexibility was assessed when the plant procured its electrical energy at fixed and variable electricity prices. In the simulated case study, flexibility use at dynamic prices resulted in a 6% cost reduction compared to a fixed-price scenario, with battery storage and the manufacturing system making the largest contributions to flexibility.