Journal article ยท Preprint article
A novel bidding method for combined heat and power units in district heating systems
Department of Applied Mathematics and Computer Science, Technical University of Denmark1
Dynamical Systems, Department of Applied Mathematics and Computer Science, Technical University of Denmark2
EMD International A/S3
CITIES - Centre for IT-Intelligent Energy Systems, Centers, Technical University of Denmark4
We propose a bidding method for the participation of combined heat and power (CHP) units in the day-ahead electricity market. More specifically, we consider a district heating system where heat can be produced by CHP units or heat-only units, e.g., gas or wood chip boilers. We use a mixed-integer linear program to determine the optimal operation of the portfolio of production units and storages on a daily basis.
Based on the optimal production of subsets of units, we can derive the bidding prices and amounts of electricity offered by the CHP units for the day-ahead market. The novelty about our approach is that the prices are derived by iteratively replacing the production of heat-only units through CHP production.
This results in an algorithm with a robust bidding strategy that does not increase the system costs even if the bids are not won. We analyze our method on a small realistic test case to illustrate our method and compare it with other bidding strategies from literature, which consider CHP units individually.
The analysis shows that considering a portfolio of units in a district heating system and determining bids based on replacement of heat production of other units leads to better results.
Language: | English |
---|---|
Publisher: | Springer Berlin Heidelberg |
Year: | 2019 |
Pages: | 1137-1156 |
Journal subtitle: | Optimization, Modeling, Simulation, and Economic Aspects |
ISSN: | 18683975 and 18683967 |
Types: | Journal article and Preprint article |
DOI: | 10.1007/s12667-019-00352-0 |
ORCIDs: | Guericke, Daniela , Blanco, Ignacio and Madsen, Henrik |
Bidding method Combined heat and power units Day-ahead electricity market District heating Mixed-integer linear programming Operational planning SDG 7 - Affordable and Clean Energy