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

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

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

9 Citations (Scopus)
148 Downloads (Pure)


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.

Original languageEnglish
Article number126423
Number of pages14
Publication statusPublished - 1 Mar 2023
MoE publication typeA1 Journal article-refereed


  • Balancing markets
  • District heat network
  • Electricity markets
  • Heat pump
  • Renewable energy systems
  • Techno-economic analysis


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  • FinEst Twins: FinEst Twins

    Nieminen, M.


    Project: EU: Framework programmes funding

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