Abstract
Industrial demand response is indispensable for providing operational flexibility to the electricity grid and for integrating the increasing shares of fluctuating renewable energy sources. In Germany and other countries, however, investments and the activation of operational flexibility are inhibited by regulatory systems that were not designed for the renewable energy era but instead, the fossil energy era. Two examples are fixed peak-demand grid fees (FGFs) and the intensive grid usage (IGU) of the Electricity Network Fee Regulation Ordinance in Germany. This paper, therefore, analyzes to what extent the necessary expansion of industrial price-based demand response is hampered by FGFs and IGU using a real-world industrial case study. For this, a design and operation optimization model of a local energy system including a photovoltaic system (PVS) and a multi-use battery energy storage system (BESS) is parametrized with anonymized data of a German chemical plant. The results show that FGFs and IGU hinder the provision of market-serving operational flexibility since flat demand profiles are rewarded. Under current market conditions, FGF and IGU provide investment incentives for BESS but discourage investment in PVSs. For BESS prices of €100kW$\mathrm{h}^{-1}$ and below, FGFs and IGU even impede investments in BESSs.
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