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Operation of district heat network in electricity and balancing markets with the power-to-heat sector coupling

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  • Javanshir, Nima
  • Syri, Sanna
  • Tervo, Seela
  • Rosin, Argo

Abstract

The stochastic nature of renewable energy resources poses a challenge in terms of balancing supply and demand in the power grid, necessitating additional sources of flexibility and balancing services. District heating networks (DHNs) equipped with power-to-heat (P2H) technologies and thermal storage can provide balancing services to the grid. Participation of DHN in a combination of diverse marketplaces to optimize revenue has been understudied. This study proposes a daily routine for the operation of a DHN in multiple energy markets, covering the day-ahead and intraday electricity markets, and various balancing markets. The emphasis is on providing balancing services by the P2H units, while considering their technical constraints of operation. The economic viability of the proposed routine is examined. Results indicate an increase in the operation profits by 1.3–9.7% compared to the total electricity sales, 0.4–3.0% of total heat sales, and 0.3–2.0% net profit in the examined DHN between 2019 and 2021. Given the complexity and uncertainty of future market development, it is critical to be aware of the most influential aspects. Sensitivity analysis indicates that fluctuations in electricity spot prices, fuel prices, and technical constraints of units significantly affect the profit.

Suggested Citation

  • Javanshir, Nima & Syri, Sanna & Tervo, Seela & Rosin, Argo, 2023. "Operation of district heat network in electricity and balancing markets with the power-to-heat sector coupling," Energy, Elsevier, vol. 266(C).
    • Handle: RePEc:eee:energy:v:266:y:2023:i:c:s0360544222033096
    DOI: 10.1016/j.energy.2022.126423
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    2. Pesola, Aki, 2023. "Cost-optimization model to design and operate hybrid heating systems – Case study of district heating system with decentralized heat pumps in Finland," Energy, Elsevier, vol. 281(C).
    3. Nima Javanshir & Sanna Syri, 2023. "Techno-Economic Analysis of a Highly Renewable and Electrified District Heating Network Operating in the Balancing Markets," Energies, MDPI, vol. 16(24), pages 1-21, December.
    4. Lin, Xiaojie & Lin, Xueru & Zhong, Wei & Zhou, Yi, 2024. "Multi-time scale dynamic operation optimization method for industrial park electricity-heat-gas integrated energy system considering demand elasticity," Energy, Elsevier, vol. 293(C).
    5. Yang, Yong & Østergaard, Poul Alberg & Wen, Wen & Zhou, Peng, 2024. "Heating transition in the hot summer and cold winter zone of China: District heating or individual heating?," Energy, Elsevier, vol. 290(C).

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