IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v313y2022ics0306261922002720.html
   My bibliography  Save this article

Process-to-market matrix mapping: A multi-criteria evaluation framework for industrial processes’ electricity market participation feasibility

Author

Listed:
  • Fatras, Nicolas
  • Ma, Zheng
  • Jørgensen, Bo Nørregaard

Abstract

Industrial consumers have a high potential to directly participate in short-term electricity markets to provide flexibility to the electricity system, particularly due to their large electricity consumption and accurate control of electricity-consuming processes. However, the different market participation options available in a deregulated electricity market context make participation feasibility unclear, as each (sub)market option has different market regulations. To address this issue, this paper proposes a process-to-market matrix mapping framework to evaluate the most feasible electricity (sub)markets for a given industrial process based on a set of techno-regulatory criteria. There are three stages in this framework: at stage 1, the properties of the industrial consumer and the market options are described in terms of standardised criteria; at stage 2, a matrix is developed to link consumer flexibility criteria (horizontal dimension of the matrix) to the relevant market criteria (vertical dimension); at stage 3, a scoring system is applied to evaluate the participation barrier level for each criterion link in the matrix. This paper uses the Danish electricity (sub)markets to illustrate the evaluation framework, and takes an industrial greenhouse, a cement mill and a cooling house as industrial process case studies to implement the developed method. Results show the main participation barriers, both from a market regulation and an industrial consumer perspective. From these, it appears that the type of industrial process significantly influences the choice of (sub)market to participate in. Barriers can be minimised by choosing market options with regulations better aligned with the consumer’s flexibility criteria. The importance of flexibility at the organisational level for market participation feasibility is also underlined. The developed framework provides a systematic method to evaluate the market participation feasibility, which can be used as a decision support tool for market participation and to overcome identified techno-regulatory barriers.

Suggested Citation

  • Fatras, Nicolas & Ma, Zheng & Jørgensen, Bo Nørregaard, 2022. "Process-to-market matrix mapping: A multi-criteria evaluation framework for industrial processes’ electricity market participation feasibility," Applied Energy, Elsevier, vol. 313(C).
    • Handle: RePEc:eee:appene:v:313:y:2022:i:c:s0306261922002720
    DOI: 10.1016/j.apenergy.2022.118829
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261922002720
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2022.118829?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. De Coninck, Roel & Helsen, Lieve, 2016. "Quantification of flexibility in buildings by cost curves – Methodology and application," Applied Energy, Elsevier, vol. 162(C), pages 653-665.
    2. Trotta, Gianluca, 2020. "An empirical analysis of domestic electricity load profiles: Who consumes how much and when?," Applied Energy, Elsevier, vol. 275(C).
    3. Robert Wilson, 2002. "Architecture of Power Markets," Econometrica, Econometric Society, vol. 70(4), pages 1299-1340, July.
    4. Gils, Hans Christian, 2014. "Assessment of the theoretical demand response potential in Europe," Energy, Elsevier, vol. 67(C), pages 1-18.
    5. Olsthoorn, Mark & Schleich, Joachim & Klobasa, Marian, 2015. "Barriers to electricity load shift in companies: A survey-based exploration of the end-user perspective," Energy Policy, Elsevier, vol. 76(C), pages 32-42.
    6. Greening, Lorna A., 2010. "Demand response resources: Who is responsible for implementation in a deregulated market?," Energy, Elsevier, vol. 35(4), pages 1518-1525.
    7. Tooraj Jamasb & Michael Pollitt, 2005. "Electricity Market Reform in the European Union: Review of Progress toward Liberalization &Integration," The Energy Journal, , vol. 26(1_suppl), pages 11-41, June.
    8. O׳Connell, Niamh & Pinson, Pierre & Madsen, Henrik & O׳Malley, Mark, 2014. "Benefits and challenges of electrical demand response: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 686-699.
    9. Torstein Bye & Einar Hope, 2005. "Deregulation of electricity markets : The Norwegian experience," Discussion Papers 433, Statistics Norway, Research Department.
    10. Alcázar-Ortega, Manuel & Calpe, Carmen & Theisen, Thomas & Carbonell-Carretero, José Francisco, 2015. "Methodology for the identification, evaluation and prioritization of market handicaps which prevent the implementation of Demand Response: Application to European electricity markets," Energy Policy, Elsevier, vol. 86(C), pages 529-543.
    11. Grein, Arne & Pehnt, Martin, 2011. "Load management for refrigeration systems: Potentials and barriers," Energy Policy, Elsevier, vol. 39(9), pages 5598-5608, September.
    12. Vithayasrichareon, Peerapat & Riesz, Jenny & MacGill, Iain, 2017. "Operational flexibility of future generation portfolios with high renewables," Applied Energy, Elsevier, vol. 206(C), pages 32-41.
    13. Brok, Niclas Brabrand & Munk-Nielsen, Thomas & Madsen, Henrik & Stentoft, Peter A., 2020. "Unlocking energy flexibility of municipal wastewater aeration using predictive control to exploit price differences in power markets," Applied Energy, Elsevier, vol. 280(C).
    14. Nolan, Sheila & O’Malley, Mark, 2015. "Challenges and barriers to demand response deployment and evaluation," Applied Energy, Elsevier, vol. 152(C), pages 1-10.
    15. Paulus, Moritz & Borggrefe, Frieder, 2011. "The potential of demand-side management in energy-intensive industries for electricity markets in Germany," Applied Energy, Elsevier, vol. 88(2), pages 432-441, February.
    16. Lund, Peter D. & Lindgren, Juuso & Mikkola, Jani & Salpakari, Jyri, 2015. "Review of energy system flexibility measures to enable high levels of variable renewable electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 785-807.
    17. Alejandro Tristán & Flurina Heuberger & Alexander Sauer, 2020. "A Methodology to Systematically Identify and Characterize Energy Flexibility Measures in Industrial Systems," Energies, MDPI, vol. 13(22), pages 1-35, November.
    18. Gils, Hans Christian, 2016. "Economic potential for future demand response in Germany – Modeling approach and case study," Applied Energy, Elsevier, vol. 162(C), pages 401-415.
    19. Biegel, Benjamin & Westenholz, Mikkel & Hansen, Lars Henrik & Stoustrup, Jakob & Andersen, Palle & Harbo, Silas, 2014. "Integration of flexible consumers in the ancillary service markets," Energy, Elsevier, vol. 67(C), pages 479-489.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fatras, Nicolas & Ma, Zheng & Duan, Hongbo & Jørgensen, Bo Nørregaard, 2022. "A systematic review of electricity market liberalisation and its alignment with industrial consumer participation: A comparison between the Nordics and China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    2. Daniel Anthony Howard & Bo Nørregaard Jørgensen & Zheng Ma, 2023. "Multi-Method Simulation and Multi-Objective Optimization for Energy-Flexibility-Potential Assessment of Food-Production Process Cooling," Energies, MDPI, vol. 16(3), pages 1-27, February.
    3. Zhang, Menghan & Yang, Zhifang & Lin, Wei & Yu, Juan & Li, Wenyuan, 2022. "Internalization of reliability unit commitment in day-ahead market: Analysis and interpretation," Applied Energy, Elsevier, vol. 326(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fatras, Nicolas & Ma, Zheng & Duan, Hongbo & Jørgensen, Bo Nørregaard, 2022. "A systematic review of electricity market liberalisation and its alignment with industrial consumer participation: A comparison between the Nordics and China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    2. Leinauer, Christina & Schott, Paul & Fridgen, Gilbert & Keller, Robert & Ollig, Philipp & Weibelzahl, Martin, 2022. "Obstacles to demand response: Why industrial companies do not adapt their power consumption to volatile power generation," Energy Policy, Elsevier, vol. 165(C).
    3. Dranka, Géremi Gilson & Ferreira, Paula, 2019. "Review and assessment of the different categories of demand response potentials," Energy, Elsevier, vol. 179(C), pages 280-294.
    4. Scharnhorst, L. & Sloot, D. & Lehmann, N. & Ardone, A. & Fichtner, W., 2024. "Barriers to demand response in the commercial and industrial sectors – An empirical investigation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 190(PB).
    5. Michael Schoepf & Martin Weibelzahl & Lisa Nowka, 2018. "The Impact of Substituting Production Technologies on the Economic Demand Response Potential in Industrial Processes," Energies, MDPI, vol. 11(9), pages 1-13, August.
    6. Pallonetto, Fabiano & De Rosa, Mattia & D’Ettorre, Francesco & Finn, Donal P., 2020. "On the assessment and control optimisation of demand response programs in residential buildings," Renewable and Sustainable Energy Reviews, Elsevier, vol. 127(C).
    7. Klaucke, Franziska & Hoffmann, Christian & Hofmann, Mathias & Tsatsaronis, George, 2020. "Impact of the chlorine value chain on the demand response potential of the chloralkali process," Applied Energy, Elsevier, vol. 276(C).
    8. Ribó-Pérez, D. & Carrión, A. & Rodríguez García, J. & Álvarez Bel, C., 2021. "Ex-post evaluation of Interruptible Load programs with a system optimisation perspective," Applied Energy, Elsevier, vol. 303(C).
    9. Cai, Qiran & Xu, Qingyang & Qing, Jing & Shi, Gang & Liang, Qiao-Mei, 2022. "Promoting wind and photovoltaics renewable energy integration through demand response: Dynamic pricing mechanism design and economic analysis for smart residential communities," Energy, Elsevier, vol. 261(PB).
    10. Müller, Theresa & Möst, Dominik, 2018. "Demand Response Potential: Available when Needed?," Energy Policy, Elsevier, vol. 115(C), pages 181-198.
    11. Ayman Esmat & Julio Usaola & María Ángeles Moreno, 2018. "Distribution-Level Flexibility Market for Congestion Management," Energies, MDPI, vol. 11(5), pages 1-24, April.
    12. Gjorgievski, Vladimir Z. & Markovska, Natasa & Abazi, Alajdin & Duić, Neven, 2021. "The potential of power-to-heat demand response to improve the flexibility of the energy system: An empirical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    13. Pechmann, Agnes & Shrouf, Fadi & Chonin, Max & Steenhusen, Nanke, 2017. "Load-shifting potential at SMEs manufacturing sites: A methodology and case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 431-438.
    14. Cruz, Marco R.M. & Fitiwi, Desta Z. & Santos, Sérgio F. & Catalão, João P.S., 2018. "A comprehensive survey of flexibility options for supporting the low-carbon energy future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 338-353.
    15. Stede, Jan & Arnold, Karin & Dufter, Christa & Holtz, Georg & von Roon, Serafin & Richstein, Jörn C., 2020. "The role of aggregators in facilitating industrial demand response: Evidence from Germany," Energy Policy, Elsevier, vol. 147(C).
    16. Wanapinit, Natapon & Thomsen, Jessica & Weidlich, Anke, 2022. "Integrating flexibility provision into operation planning: A generic framework to assess potentials and bid prices of end-users," Energy, Elsevier, vol. 261(PB).
    17. McPherson, Madeleine & Stoll, Brady, 2020. "Demand response for variable renewable energy integration: A proposed approach and its impacts," Energy, Elsevier, vol. 197(C).
    18. Héctor Marañón-Ledesma & Asgeir Tomasgard, 2019. "Analyzing Demand Response in a Dynamic Capacity Expansion Model for the European Power Market," Energies, MDPI, vol. 12(15), pages 1-24, August.
    19. Tahir, Muhammad Faizan & Chen, Haoyong & Khan, Asad & Javed, Muhammad Sufyan & Cheema, Khalid Mehmood & Laraik, Noman Ali, 2020. "Significance of demand response in light of current pilot projects in China and devising a problem solution for future advancements," Technology in Society, Elsevier, vol. 63(C).
    20. Rusche, Simon & Weissflog., Jan & Wenninger, Simon & Häckel, Björn, 2023. "How flexible are energy flexibilities? Developing a flexibility score for revenue and risk analysis in industrial demand-side management," Applied Energy, Elsevier, vol. 345(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:313:y:2022:i:c:s0306261922002720. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.