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Optimizing the marketing of flexibility for a virtual battery in day-ahead and balancing markets: A rolling horizon case study

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  • Finhold, E.
  • Gärtner, C.
  • Grindel, R.
  • Heller, T.
  • Leithäuser, N.
  • Röger, E.
  • Schirra, F.

Abstract

Industrial electricity consumers with flexible demand can profit from adjusting their load to short-term prices or 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 different rules for bidding, 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 Aluminum 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.

Suggested Citation

  • Finhold, E. & Gärtner, C. & Grindel, R. & Heller, T. & Leithäuser, N. & Röger, E. & Schirra, F., 2023. "Optimizing the marketing of flexibility for a virtual battery in day-ahead and balancing markets: A rolling horizon case study," Applied Energy, Elsevier, vol. 352(C).
    • Handle: RePEc:eee:appene:v:352:y:2023:i:c:s0306261923010310
    DOI: 10.1016/j.apenergy.2023.121667
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    References listed on IDEAS

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