Constructing bidding curves for a CHP producer in day-ahead electricity markets

Dimoulkas, Ilias; Amelin, Mikael

doi:10.1109/energycon.2014.6850471

Cited by 17 publications

(23 citation statements)

References 16 publications

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“…The offered quantity is, furthermore, placed at the minimum allowed offer price, such that it is always accepted. We note, though, that more sophisticated offering strategies for the day-ahead market, e.g., [6], [13], are easily implementable within the mathematical framework proposed in this paper. In any case, we need to recreate the participation of the CHP and the wind power producers in the day-ahead electricity market, because the outcome of this market will determine the heat and power production schedules with respect to which the heat and power imbalances incurred by the portfolio are to be determined.…”

Section: Determining the Day-ahead Offermentioning

confidence: 99%

“…This makes the computation of the best day-ahead offer substantially more involved and opens up a number of choices to be made by the decision maker. Indeed, several techniques of optimization under uncertainty have been used to deal with problems of the type of (1)- (16) in similar contexts, for instance, robust optimization [27], stochastic programming [6], [13] and linear decision rules [7] (see also [1, ch. 8] and references therein), with the aim of maximizing the worst-case scenario of the profit, its expectation or a certain quantile of the profit distribution.…”

Section: Determining the Day-ahead Offermentioning

confidence: 99%

“…In particular, deterministic optimization models are proposed in [3], [4]. The use of stochastic programming models is investigated in [5], [6]. Finally, robust optimization is used in [7].…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Operational Strategies for a Portfolio of Wind Farms and CHP Plants in a Two-Price Balancing Market

Hellmers

Zugno

Skajaa

et al. 2016

IEEE Trans. Power Syst.

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In this paper, we explore the portfolio effect of a system consisting of a combined heat and power (CHP) plant and a wind farm. The goal is to increase the overall profit of the portfolio by reducing imbalances and, consequently, their implicit penalty in a two-price balancing market for electricity. We investigate two different operational strategies, which differ in whether the CHP plant and the wind farm are operated jointly or independently, and we evaluate their economic performance on a real case study based on a CHP-wind system located in the western part of Denmark. We present a comprehensive mathematical model for describing the different heat and power production units of the CHP plant and suggest different ways of determining its operation in a setup with two trading floors: a day-ahead market and a balancing market. We build a simulation framework that runs in a rolling-horizon fashion, so that forecasts for heat demand, wind power production, and market prices are updated at each iteration. We conclude that the portfolio strategy is the most profitable due to the two-price structure of the balancing market. This encourages producers to handle their imbalances outside the market.Index Terms-Balancing market, combined heat and power (CHP), electricity market, optimal portfolio operation, wind power.

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Section: Determining the Day-ahead Offermentioning

confidence: 99%

Section: Determining the Day-ahead Offermentioning

confidence: 99%

See 1 more Smart Citation

Operational Strategies for a Portfolio of Wind Farms and CHP Plants in a Two-Price Balancing Market

Hellmers

Zugno

Skajaa

et al. 2016

IEEE Trans. Power Syst.

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“…The model is similar to the two-stage model described in [9] with the addition of the possibility to store thermal energy and an extra stage in the decision tree. Furthermore, it is an extension of the model presented in [10] where the aim is to provide a bidding decision tool. Here instead, the aim is to provide a production scheduling tool.…”

Section: Introductionmentioning

confidence: 99%

Probabilistic day-ahead CHP operation scheduling

Dimoulkas

Amelin

2015

2015 IEEE Power &Amp; Energy Society General Meeting

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Abstract-The production scheduling of combined heat and power plants is a challenging task. The need for simultaneous production of heat and power in combination with the technical constraints results in a problem with high complexity. Furthermore, the operation in the electricity markets environment means that every decision is made with unknown electricity prices for the produced electric energy. In order to compensate the increased risk of operating under such uncertain conditions, tools like stochastic programming have been developed. In this paper, the short-term operation scheduling model of a CHP system in the day-ahead electricity market is mathematically described and solved. The problem is formulated in a stochastic programming framework where the uncertain parameters of dayahead electricity prices and the heat demand are incorporated into the problem in the form of scenarios. A case study is also performed with a CHP system operating in a district heating network and the value of heat storage capacity is estimated. I. INTRODUCTIONThe short-term operation scheduling of a system of power plants is a decision making problem regarding how much power and by which units is going to be produced during a short time period in the future, usually one day to one week ahead. This is a typical optimization problem, called unit commitment and economic dispatch, which is faced by power producers in order to minimize their costs and maximize their profits. In the special case of combined heat and power (CHP) systems this problem becomes more complex since the production of both power and heat need to be scheduled. Traditionally CHP systems find application in cases where there is a demand for both power and heat like industry and district heating. Small CHP systems, called micro CHP, are also used in commercial and residential buildings to provide heating and cooling. Compared to conventional power plants, CHP systems achieve a higher overall efficiency, resulting in reduced fuel consumption and exhaust gas emissions.Various models have been proposed for the CHP shortterm production scheduling. The economic dispatch problem has been initially described and solved in [1], [2] and [3] where the problem is quadratic with linear constraints. In [4] a methodology based on dynamic programming and Lagrange relaxation is proposed. More recent works can be found in [5] and [6]. A comprehensive study of the various models and solutions that have been proposed for the CHP operation scheduling can be found in [7] and [8]. This paper describes a three-stage stochastic model with recourse which takes

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“…For instance, in [14][15][16] the start-ups are considered taking into account the preceding offline time of the unit. It was complicated by limiting the temperature increase and the heating speed [17], ramping constraints, including start-up, shutdown production trajectory, ramp rate and ramp down constraints [18][19][20], and the change of thermal stress of the main equipment [21].…”

Section: Introductionmentioning

confidence: 99%

An approach to optimize the cycling operation of conventional combined heat and power plants

Ivanova¹,

Grebesh²,

Mutule³

et al. 2018

energetika

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The implementation of the market mechanism, which includes electricity price fluctuation, and a wide integration of intermittent generation, namely solar PV and wind energy, in energy production have changed the role and operation manner of conventional generation. It is partly or not at all adapted to new running conditions. Therefore, the efficiency and flexibility of conventional generation has to be improved. The numerical approach is developed in the context of combined cycle gas turbine (CCGT) technology to adapt its running conditions to the electricity market mechanism. The developed approach was verified on a case study of the Baltic States (Latvia) examples in a multi-paradigm numerical computing environment MATLab. The obtained results show that the added profit is gained through production of supplementary electricity, and the impact of cycling operation is reduced through the decrease of cycling operation ranges numbers and the substitution of start-up with a less adverse one from a technical and economical point of view. The developed approach can be adapted to various technologies and situations by adding appropriate characteristics and constraints of technology.

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Constructing bidding curves for a CHP producer in day-ahead electricity markets

Cited by 17 publications

References 16 publications

Operational Strategies for a Portfolio of Wind Farms and CHP Plants in a Two-Price Balancing Market

Operational Strategies for a Portfolio of Wind Farms and CHP Plants in a Two-Price Balancing Market

Probabilistic day-ahead CHP operation scheduling

An approach to optimize the cycling operation of conventional combined heat and power plants

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