Optimal Configuration of Power-to-Heat Equipment Considering Peak-Shaving Ancillary Service Market

Abstract

The serious problem of wind power curtailment in northern China has created a pressing need to enhance the peak-shaving ability of the power system. As the main source of power supply in northern China, combined heat and power (CHP) units have significant potential for peak-shaving. Currently, the Chinese government encourages CHP plants to increase their peak-shaving capacity by installing power-to-heat (P2H) equipment. In addition, the government has implemented auxiliary service market policies to encourage CHP plants to provide peak-shaving services. In order to maximize economic benefits for CHP plants, this paper proposes an optimal configuration method of P2H equipment with the static payback time (SPT) as the objective function. Cost and income models of installing the P2H equipment are constructed by taking into account the auxiliary service market policies. The peak-shaving income model of the CHP plant is derived emphatically as a key part of the proposed method. Finally, the district heating region in Jilin province is used as a case study example. The results show that adding the P2H equipment is significantly effective in improving the peak-shaving ability of CHP units, and investing in heat pumps is more cost-effective than electric boilers. The proposed method can be applied to other northern regions relying on CHP units for central heating, providing a valuable solution to the problem of wind power curtailment in these regions.