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Optimal Trading of Flexible Power Consumption on the Day-Ahead Market

In: Operations Research Proceedings 2021

Author

Listed:
  • Neele Leithäuser

    (Fraunhofer ITWM)

  • Till Heller

    (Fraunhofer ITWM)

  • Elisabeth Finhold

    (Fraunhofer ITWM)

  • Florian Schirra

    (Fraunhofer ITWM)

Abstract

As power generators shift from inert power plants to more volatile renewable sources of electricity, variable loads allow energy intensive businesses to monetize their flexibility in the electricity market. In the aluminum industry, engineering innovations have enabled such flexibility. A virtual battery can balance changing power inflows over a period of a few days. We have modeled the optimization problem of when and how to use this flexibility on the day-ahead energy market based on hourly price forecasts as a linear program. Besides the expected revenue, we also consider technical costs which occur in an unsteady energy schedule. In order to account for realistic trading settings, we embed the optimization problem in a daily rolling horizon planning framework. In this work, we generalize the specific planning problem to a broader range of applications and analyze the main influences on a profitable trading strategy. For a typical parametrization, we present a constructive heuristic that does not require an LP-Solver.

Suggested Citation

  • Neele Leithäuser & Till Heller & Elisabeth Finhold & Florian Schirra, 2022. "Optimal Trading of Flexible Power Consumption on the Day-Ahead Market," Lecture Notes in Operations Research, in: Norbert Trautmann & Mario Gnägi (ed.), Operations Research Proceedings 2021, pages 175-181, Springer.
    • Handle: RePEc:spr:lnopch:978-3-031-08623-6_27
    DOI: 10.1007/978-3-031-08623-6_27
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