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arXiv · 2303.10025

Optimizing the Marketing of Flexibility for a Virtual Battery in Day-Ahead and Balancing Markets: A Rolling Horizon Case Study

E. Finhold·C. Gärtner·R. Grindel·T. Heller·N. Leithäuser·E. Röger·F. Schirra
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Abstract

Industrial electricity consumers with flexible demand can profit by adjusting their load to short-term prices and by providing balancing services to the grid. Markets which support this kind of short-term position adjustment are the day-ahead market and balancing markets. We propose a formulation for a combined optimization model that computes an optimal distribution of flexibility between the balancing and day-ahead markets. The optimal solution also includes the specific bids for the day-ahead and balancing markets. Besides the expected profits of each market and their individual bidding languages, our model also takes their different roles in a continuous marketing of flexibility into account. To prevent overrating short-term profits we introduce a variable penalty term that adds a cost to unfavorable load schedules. We evaluate the optimization model in a rolling horizon case study based on the setting of a virtual battery at TRIMET SE, which is derived from a flexible aluminum electrolysis process. For such a battery we compute a daily optimal split of flexibility and trading decisions based on data in the period 04/2021 - 03/2022. We show that the optimal split is more profitable than using only one market or a fixed split between the markets.

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E. Finhold, C. Gärtner, R. Grindel, T. Heller, N. Leithäuser, E. Röger, F. Schirra. 2023-03-17. Optimizing the Marketing of Flexibility for a Virtual Battery in Day-Ahead and Balancing Markets: A Rolling Horizon Case Study. https://arxiv.org/abs/2303.10025

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