Abstract
In this chapter, we introduce optimization methods for production scheduling and power market participation for district heating systems under uncertainty. We present an optimization model for scheduling the production units using mixed-integer linear programming and stochastic programming. Based on the optimal production scheduling, the bidding amounts and prices to the day-ahead market are determined using an extension of the model. Results are shown for a demo case of a Danish district heating system.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Birge, J. R., & Louveaux, F. (2006). Introduction to Stochastic Programming (2nd ed.). Springer. https://doi.org/10.1007/0-387-33477-7.
Blanco, I., Guericke, D., Andersen, A., & Madsen, H. (2018). Operational planning and bidding for district heating systems with uncertain renewable energy production. Energies,11(3310). https://doi.org/10.3390/en11123310.
Blanco, I., Andersen, A., Guericke, D., & Madsen, H. (2019). A novel bidding method for combined heat and power units in district heating systems. Energy Systems. https://doi.org/10.1007/s12667-019-00352-0.
Boomsma, T. K., Juul, N., & Fleten, S. E. (2014). Bidding in sequential electricity markets: The Nordic case. European Journal of Operational Research, 238(3), 797–809. https://doi.org/10.1016/j.ejor.2014.04.027.
Carpaneto, E., Lazzeroni, P., & Repetto, M. (2015). Optimal integration of solar energy in a district heating network. Renewable Energy, 75, 714–721. https://doi.org/10.1016/j.renene.2014.10.055.
Conejo, A. J., Nogales, F. J., & Arroyo, J. M. (2002). Price-taker bidding strategy under price uncertainty. IEEE Transactions on Power Systems, 17(4), 1081–1088. https://doi.org/10.1109/TPWRS.2002.804948.
Dimoulkas, I., Amelin, M. (2014). Constructing bidding curves for a CHP producer in day-ahead electricity markets. In ENERGYCON 2014 - IEEE International Energy Conference (pp. 487–494). https://doi.org/10.1109/ENERGYCON.2014.6850471
Fang, T., & Lahdelma, R. (2016). Optimization of combined heat and power production with heat storage based on sliding time window method. Applied Energy, 162(2016), 723–732. https://doi.org/10.1016/j.apenergy.2015.10.135.
Faria, E., & Fleten, S. E. (2011). Day-ahead market bidding for a Nordic hydropower producer: Taking the Elbas market into account. Computational Management Science, 8(1–2), 75–101. https://doi.org/10.1007/s10287-009-0108-5.
Fleten, S. E., & Kristoffersen, T. K. (2007). Stochastic programming for optimizing bidding strategies of a Nordic hydropower producer. European Journal of Operational Research, 181(2), 916–928. https://doi.org/10.1016/j.ejor.2006.08.023.
Kumbartzky, N., Schacht, M., Schulz, K., & Werners, B. (2017). Optimal operation of a CHP plant participating in the German electricity balancing and day-ahead spot market. European Journal of Operational Research, 261(1), 390–404. https://doi.org/10.1016/j.ejor.2017.02.006.
Li, H., & Wang, S. J. (2014). Challenges in smart low-temperature district heating development. Energy Procedia, 61, 1472–1475. https://doi.org/10.1016/j.egypro.2014.12.150.
Li, J., Fang, J., Zeng, Q., & Chen, Z. (2016). Optimal operation of the integrated electrical and heating systems to accommodate the intermittent renewable sources. Applied Energy, 167, 244–254. https://doi.org/10.1016/j.apenergy.2015.10.054.
Lund, H., Werner, S., Wiltshire, R., Svendsen, S., Thorsen, J. E., Hvelplund, F., & Mathiesen, B. V. (2014). 4th Generation District Heating (4GDH). Integrating smart thermal grids into future sustainable energy systems. Energy, 68, 1–11. https://doi.org/10.1016/j.energy.2014.02.089.
Nielsen, M. G., Morales, J. M., Zugno, M., Pedersen, T. E., & Madsen, H. (2016). Economic valuation of heat pumps and electric boilers in the Danish energy system. Applied Energy, 167, 189–200. https://doi.org/10.1016/j.apenergy.2015.08.115.
PandŽić, H., Morales, J. M., Conejo, A. J., & Kuzle, I. (2013). Offering model for a virtual power plant based on stochastic programming. Applied Energy, 105, 282–292. https://doi.org/10.1016/j.apenergy.2012.12.077.
Ravn, H.V. (2004). Modelling Danish local CHP on market conditions. In 6th IAEE European Conference: Modelling in Energy Economics and Policy (pp. 1–18)
Rodriguez, C. P., & Anders, G. J. (2004). Bidding strategy design for different types of electric power market participants. IEEE Transactions on Power Systems, 19(2), 964–971. https://doi.org/10.1109/TPWRS.2004.826763.
Rothwell, G., Gómez, T. (2003). The Norwegian and Nordic Power Sectors (pp. 161–186). https://doi.org/10.1109/9780470544495.ch7
Sarbu, I., Mirza, M., & Crasmareanu, E. (2019). A review of modelling and optimisation techniques for district heating systems. International Journal of Energy Research, 43(13), 6572–6598. https://doi.org/10.1002/er.4600.
Schledorn, A., Guericke, D., Andersen, A., & Madsen, H. (2021). Optimising block bids of district heating operators to the day-ahead electricity market using stochastic programming. Smart Energy, 1. https://doi.org/10.1016/j.segy.2021.100004.
Wang, H., Yin, W., Abdollahi, E., Lahdelma, R., & Jiao, W. (2015). Modelling and optimization of CHP based district heating system with renewable energy production and energy storage. Applied Energy, 159, 401–421. https://doi.org/10.1016/j.apenergy.2015.09.020.
Acknowledgements
Brønderslev Forsyning A/S and the Department of Applied Mathematics and Computer Science, Technical University of Denmark, are partners in the project Heat 4.0—Digitally supported Smart District Heating funded by Innovation Fund Denmark (grant no. 8090-00046B).
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 TECNALIA
About this chapter
Cite this chapter
Guericke, D., Schledorn, A., Madsen, H. (2022). Optimization of Heat Production for Electricity Market Participation. In: Garay-Martinez, R., Garrido-Marijuan, A. (eds) Handbook of Low Temperature District Heating. Green Energy and Technology. Springer, Cham. https://doi.org/10.1007/978-3-031-10410-7_8
Download citation
DOI: https://doi.org/10.1007/978-3-031-10410-7_8
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-10409-1
Online ISBN: 978-3-031-10410-7
eBook Packages: EnergyEnergy (R0)