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

doi:10.1016/j.energy.2022.126423

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

Tallinn University of Technology

Research output: Contribution to journal › Article › Scientific › peer-review

49 Citations (Scopus)

418 Downloads (Pure)

Abstract

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 language	English
Article number	126423
Number of pages	14
Journal	Energy
Volume	266
DOIs	https://doi.org/10.1016/j.energy.2022.126423
Publication status	Published - 1 Mar 2023
MoE publication type	A1 Journal article-refereed

Funding

This work has been supported by the European Commission through the H2020 project Finest Twins (grant No. 856602 ) and by the Estonian Centre of Excellence in Zero Energy and Resource Efficient Smart Buildings and Districts ZEBE, grant 2014-2020.4.01.15-0016 funded by European Regional Development Fund.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Keywords

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

Access to Document

10.1016/j.energy.2022.126423Licence: CC BY

1-s2.0-S0360544222033096-mainFinal published version, 6.11 MBLicence: CC BY

Cite this

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

abstract = "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.",

keywords = "Balancing markets, District heat network, Electricity markets, Heat pump, Renewable energy systems, Techno-economic analysis",

author = "Nima Javanshir and Sanna Syri and Seela Tervo and Argo Rosin",

note = "| openaire: EC/H2020/856602/EU//FINEST TWINS Funding Information: This work has been supported by the European Commission through the H2020 project Finest Twins (grant No. 856602 ) and by the Estonian Centre of Excellence in Zero Energy and Resource Efficient Smart Buildings and Districts ZEBE, grant 2014-2020.4.01.15-0016 funded by European Regional Development Fund. Publisher Copyright: {\textcopyright} 2022 The Authors",

year = "2023",

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doi = "10.1016/j.energy.2022.126423",

language = "English",

volume = "266",

journal = "Energy",

issn = "0360-5442",

publisher = "Elsevier",

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TY - JOUR

T1 - Operation of district heat network in electricity and balancing markets with the power-to-heat sector coupling

AU - Javanshir, Nima

AU - Syri, Sanna

AU - Tervo, Seela

AU - Rosin, Argo

N1 - | openaire: EC/H2020/856602/EU//FINEST TWINS Funding Information: This work has been supported by the European Commission through the H2020 project Finest Twins (grant No. 856602 ) and by the Estonian Centre of Excellence in Zero Energy and Resource Efficient Smart Buildings and Districts ZEBE, grant 2014-2020.4.01.15-0016 funded by European Regional Development Fund. Publisher Copyright: © 2022 The Authors

PY - 2023/3/1

Y1 - 2023/3/1

N2 - 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.

AB - 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.

KW - Balancing markets

KW - District heat network

KW - Electricity markets

KW - Heat pump

KW - Renewable energy systems

KW - Techno-economic analysis

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DO - 10.1016/j.energy.2022.126423

M3 - Article

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SN - 0360-5442

VL - 266

JO - Energy

JF - Energy

M1 - 126423

ER -

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

Abstract

Funding

UN SDGs

Keywords

Access to Document

Other files and links

Fingerprint

-: FINEST TWINS GA856602Nieminen

Cite this

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

Abstract

Funding

UN SDGs

Keywords

Access to Document

Other files and links

Fingerprint

Projects

-: FINEST TWINS GA856602Nieminen

Cite this