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Impact of wind penetration in electricity markets on optimal power-to-heat capacities in a local district heating system

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  • Dorotić, Hrvoje
  • Ban, Marko
  • Pukšec, Tomislav
  • Duić, Neven

Abstract

While the share of intermittent renewable energy sources in a power sector is constantly increasing, demand response technologies are becoming a crucial part of interconnected energy systems. The district heating sector has a great potential of offering such services if power-to-heat and thermal storage technologies are implemented. This is a well-known method of utilizing low-price electricity from the power market. However, power-to-heat optimal supply capacities are rarely studied with respect to different market conditions, especially from the point of view of multi-objective optimization. This paper shows an analysis of the impact of a wind production increase in a power market on optimal power-to-heat capacities in a local district heating system. To obtain these results, a district heating optimization model was developed by using linear programming, while the power market prices reduction is analysed by using historical bidding market data and shifting of the supply curve. The district heating model was created in the open-source and free programming language called Julia. The model was tested on a case study of the Nord Pool electricity market and a numerical example of a district heating system. The main outcome of this research is to show how district heating supply technologies operate in different market conditions and how they affect optimal power-to-heat and thermal storage capacities. Heat pump capacities linearly follow wind production increase in power markets.

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  • Dorotić, Hrvoje & Ban, Marko & Pukšec, Tomislav & Duić, Neven, 2020. "Impact of wind penetration in electricity markets on optimal power-to-heat capacities in a local district heating system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    • Handle: RePEc:eee:rensus:v:132:y:2020:i:c:s1364032120303865
    DOI: 10.1016/j.rser.2020.110095
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