Simulation of a controlled water heating system with demand response remunerated on imbalance market pricing

Abstract

Buildings are responsible for 40% of our worldwide energy consumption and 50% of this energy is converted for HVAC systems in buildings (e.g. for hot water). Through demand response it becomes possible to activate these systems and aiding in balancing the net. We simulated a domestic water heater participating in the balancing of the electricity net and calculated the revenue from this action. The transmission system operator rewards active participation in delivering balancing energy. We simulate a water heater in connection with an Economic Model Predictive Controller (EMPC) which takes future usage, energy cost, and reward for delivering balanced power into account. We show that the choice of an EMPC controller is valid as it allows the setpoint to change if certain conditions are met, leading to a more optimal revenue stream from selling flexibility. We find that the economic benefits of participating in delivering balancing power is considerable and offset an increase in energy costs. The increase in energy consumption could be justified as the participation in net stabilisation allows the macro-system to integrate more renewable energy sources.More importantly, the simulations also show that the poorer the energy performance of the water heater, the more flexibility can be sold. From a policy point of view, a minimal energy performance should be determined before allowing participation in net stabilisation.

Analysing the Economic Viability of Implicit Demand Response Control of Thermal Energy Storage in Hot Water Tanks

“…Alternatively, energy companies can pay a flexibility bonus per kWh of shifted demand. It has been shown that such incentives can greatly improve the return on investment [37,69]. However, too many incentives without regulation can lead to the use of less efficient technologies which offer greater flexibility.…”

Demand response of district heating using model predictive control to prevent the draught risk of cold window in an office building

“…Most of the previous studies about demand response J o u r n a l P r e -p r o o f 3 focused on energy management [10,11] to match energy generation and consumption with the behavior and comfort of occupants [12,13]. Demand response in building energy systems usually aimed to use low-cost [14] or low CO 2 emissions energy by shifting consumption times [15]. To meet the requirements of diversified energy systems in the future, the measurements to increase the energy flexibility of buildings regarding both electricity and thermal systems were also studied [16,17].…”