Abstract
In countries with an extended use of district heating (DH), the integrated operation of DH and power systems can increase the flexibility of the power system, achieving a higher integration of renewable energy sources (RES). DH operators can not only provide flexibility to the power system by acting on the electricity market, but also profit from the situation to lower the overall system cost. However, the operational planning and bidding includes several uncertain components at the time of planning: electricity prices as well as heat and power production from RES. In this publication, we propose a planning method based on stochastic programming that supports DH operators by scheduling the production and creating bids for the day-ahead and balancing electricity markets. We apply our solution approach to a real case study in Denmark and perform an extensive analysis of the production and trading behavior of the DH system. The analysis provides insights on system costs, how DH system can provide regulating power, and the impact of RES on the planning.
Highlights
To achieve the decarbonization of the energy sector, several countries especially in the EuropeanUnion started to consider district heating (DH) and cooling systems for CO2 -emission reduction strategies [1]
There is a need for a planning method that allows DH operators with a portfolio of units to schedule their production under uncertainty and participate in both day-ahead and balancing markets
The electricity can be bought from the power grid as a regular consumer or using a special tariff. This tariff consists of a tax benefit for operating the electric boiler, in which the amount of power injected by our own wind farm (WF) into the grid is at the same time consumed by the electric boiler
Summary
To achieve the decarbonization of the energy sector, several countries especially in the European. Energies 2018, 11, 3310 to fulfill the heat demand in the DH network at the lowest cost, selling the power production from the CHP units or other RES as well as buying the power for heat-to-power technologies on electricity markets offers the potential for additional income, resulting in lower total operating costs. As the RES production in the power and heat systems depends on weather conditions, the operation and planning have to deal with increased complexity and uncertainty, which requires advanced modeling techniques [5]. Bidding methods must account for uncertain electricity prices and RES production. We propose an operational planning method for DH operators coping with the complexity of a system with several traditional and RES production units This includes the bidding in two electricity markets, namely the day-ahead and balancing market.
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