Distributed CHP plants optimized across more electricity markets

The hypothesis of this PhD project is that a transition needs to be initiated from “First Generation distributed CHP” helping only to reduce fuel use through its high efficiency - towards “Next Generation distributed CHP” maintaining this high efficiency but at the same time making (on a macro-economic scale) the integration of fluctuating production from renewable energy sources (RES) less costly by being flexible.

The research focuses on investigating investment and daily operation strategies for distributed CHP, when these plants are participating across more whole sale markets and balancing markets, and is focused on the needed interaction between the plants when optimizing market participation.

It is the objective of this PhD project to develop methodologies for the daily operation of distributed CHP plants that are both trading electricity on wholesale markets and providing balancing for the electricity system on a market basis. The methods should both include how the plants can cooperate if it is needed for market participation as some balancing markets have minimum bid size requirements, and how to optimize participation in both wholesale electricity markets and balancing markets. The methods will be developed in cooperation with several distributed CHP plants, where participating in the daily operation will be an important approach for developing the methodologies.

It is expected that these improved methods for daily operation of distributed CHP plants will help reduce the societal costs of balancing the electricity system as they will remove more expensive units and reduce the import of balancing. This will in turn facilitate a less costly integration of fluctuating production from RES.

 


Presentation of the project - held at the 4DH Phd. Fellow seminar 2012

 PhD dissertation from July 1015 - Bidding and operation strategies in future energy marketsBidding and operation strategies in future energy markets

 

 

 



Funded by


InnovationFundDenmark logo 2014