Abstract
For energy companies with a combined heat and power (CHP) plant and a heat storage device, the provision of balancing power provides additional revenue potential. Balancing power is needed to ensure a stable frequency if current generation differs from demand. In Germany, the responsible transmission system operator procures the needed type of reserve energy through an auction. To participate in the balancing market for minute reserve, energy companies have to submit a bid for a certain time frame of the following day that comprises a price and the amount of electricity at which power generation can be increased or decreased considering the expected load. Therefore, capacity allocation for the balancing market has to be considered simultaneously with the uncertain next day’s unit commitment of the CHP plant and the heat storage device. To support energy companies planning their bids, an optimization model is developed to determine the optimal bidding amount based on a forecasted market clearing price.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Conejo, A.J., Nogales, F.J., Arroyo, J.M.: Price-taker bidding strategy under price uncertainty. IEEE Trans. Power Syst. 17(4), 1081–1088 (2002)
Haucap, J., Heimeshoff, U., Jovanovic, D.: Competition in Germany’s minute reserve power market: an econometric analysis. Energy J. 35(2), 137–156 (2014)
Lahdelma, R., Hakonen, H.: An efficient linear programming algorithm for combined heat and power production. Eur. J. Oper. Res. 148(1), 141–151 (2003)
Li, G., Shi, J., Qu, X.: Modeling methods for GenCo bidding strategy optimization in the liberalized electricity spot market—a state-of-the-art review. Energy 36(8), 4686–4700 (2011)
Müller, G., Rammerstorfer, M.: A theoretical analysis of procurement auctions for tertiary control in Germany. Energy Policy 36(7), 2620–2627 (2008)
Schulz, K., Schacht, M., Werners, B.: Influence of fluctuating electricity prices due to renewable energies on heat storage investments. In: Huisman, D., et al. (eds.) Operations Research Proceedings 2013. Springer, New York (2014)
Schacht, M., Schulz, K.: Kraft-Wärme-Kopplung in kommunalen Energieversorgungsunternehmen - Volatile Einspeisung erneuerbarer Energien als Herausforderung. In: Armborst, K., et al. (eds.) Management Science - Festschrift zum 60. Geburtstag von Brigitte Werners, Dr. Kovac, 337–363. Hamburg (2013)
Valenzuela, J., Mazumdar, M.: Commitment of electric power generators under stochastic market prices. Oper. Res. 51(6), 880–893 (2003)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2016 Springer International Publishing Switzerland
About this paper
Cite this paper
Schulz, K., Hechenrieder, B., Werners, B. (2016). Optimal Operation of a CHP Plant for the Energy Balancing Market. In: Lübbecke, M., Koster, A., Letmathe, P., Madlener, R., Peis, B., Walther, G. (eds) Operations Research Proceedings 2014. Operations Research Proceedings. Springer, Cham. https://doi.org/10.1007/978-3-319-28697-6_74
Download citation
DOI: https://doi.org/10.1007/978-3-319-28697-6_74
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-28695-2
Online ISBN: 978-3-319-28697-6
eBook Packages: Business and ManagementBusiness and Management (R0)