A new approach for near real-time micro-CHP management in the context of power system imbalances – A case study

Riveros, Juliana Zapata; Donceel, R.; Engeland, Jens Van; D’haeseleer, William

doi:10.1016/j.enconman.2014.09.076

Cited by 14 publications

(6 citation statements)

References 13 publications

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“…To lessen the need for activation of reserve capacity on the procurement side of the balancing market, BRPs can help the TSO keep the system balanced by intentionally incurring imbalanced positions in the opposite direction of the SI, which can be referred to as "passive balancing" [87]. However, we argue that with dual-pricing there is unfortunately little incentive to provide passive balancing since the DA price is applied toimbalances in the opposite direction of the SI.…”

Section: Single-pricing Vs Dual-pricingmentioning

confidence: 98%

Interactions between the design of short-term electricity markets in the CWE region and power system flexibility

et al. 2017

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Short-term electricity markets are generally defined as markets that take place from the day-ahead stage until physical generation and consumption. These markets include dayahead, intra-day, and real-time balancing markets. In Europe, the first two are managed by power exchanges, while the third consists of reserve procurement and imbalance settlement and is operated by the local transmission system operator. Short-term markets are important tools to deal with net demand variability in the system, in which the need for flexibility is expressed and its provision is valorized. Due to the ongoing integration of variable renewables in the generation mix, the system's variability is increasing as a result of the limited controllability and predictability of those resources. As such, these markets become increasingly important. The contribution of this article is a comprehensive upto-date discussion of the key design parameters and functioning of all three short-term markets, and their impact on the demand for and supply of flexibility. An understanding of the design and its implications is useful to policy-makers who are considering changes to facilitate the integration, availability, or valorization of flexibility, while also contributing to the decision-making of flexibility investors and operators. The geographical scope is the Central Western European region, including the Belgian, French, German, and Dutch market zones.

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Section: Single-pricing Vs Dual-pricingmentioning

confidence: 98%

Interactions between the design of short-term electricity markets in the CWE region and power system flexibility

et al. 2017

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“…A single imbalance pricing means, that BRPs, whose imbalance position is opposed to the system balance, receive the same price as the BRPs pay, who reinforce the system balance. This is the imbalance pricing mechanism in Germany and it incites to take an intentional imbalance position [43,44]. If the expected imbalance price is lower than the current intraday market price, it might be beneficial to take a sell position and pay the imbalance price (and vice versa).…”

Section: Price Incentives For Intraday Imbalance Optimizationmentioning

confidence: 99%

Intraday imbalance optimization: incentives and impact of strategic intraday bidding behavior

Koch

2021

Energy Syst

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Intraday markets are crucial to balance supply and demand in the very short-term, up to delivery. They are often designed as continuous auctions with a pay-as-bid pricing mechanism. While several studies assess trading strategies to balance different types of portfolios, they normally do not consider the incentives of the imbalance prices for portfolio management. This paper analyzes a strategy of taking positions in the German intraday market based on expected imbalance prices and examines its impact on system stability. Using a logistic regression model, it is possible to accurately predict the direction of the overall system balance and to apply a profitable trading strategy. For a period from 01/07/2017 to 30/06/2019, the strategy outperforms a simple approach by EUR 47 000 per MW. However, this behavior would predominantly not have been system supportive due to biased imbalance price incentives. These are asymmetric price spreads and insufficiently low imbalance prices compared to intraday prices. An efficient intraday price constraint would partly solve the problem. The overall share of system supportive imbalance positions would raise by ten percentage points. In situations with high system wide imbalances, up to three-quarters of the positions would stabilize the system. These findings are important for regulation in Germany and other countries with a single imbalance pricing as they provide an indication for crucial points of the imbalance pricing rules to incite appropriate market behavior.

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“…Thus, it is prohibited to take intentional imbalance positions. However, the symmetric imbalance price in Germany gives a financial incentive to take an intentional imbalance position (Hirth and Ziegenhagen, 2015;Just and Weber, 2015;Zapata Riveros et al, 2015). Depending on the sign of their imbalance position, BRPs will either pay or receive the imbalance price for their imbalance.…”

Section: The Concept Of Passive Balancingmentioning

confidence: 99%

“…The research relates to several studies discussing the theoretic approach of passive balancing (Chaves-Ávila et al, 2014a;Zapata Riveros et al, 2015;Brijs et al, 2017;Hu et al, 2018;Joos and Staffell, 2018;Röben and Schäfers, 2018). None of them apply a specific case study.…”

Section: Introductionmentioning

confidence: 99%

Passive Balancing Through Intraday Trading: Whether Interactions Between Short-Term Trading and Balancing Stabilize Germany’s Electricity System

Koch¹,

Maskos²

2020

IJEEP

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Transmission System operators actively balance the electricity system by sending a dispatch signal to suppliers of balancing reserve. When market participants intentionally adapt their intraday positions based on the expected system state, they can also reduce the required dispatch of balancing reserves. This is called passive balancing. The German imbalance price system incites this behavior. This paper examines whether passive balancing prevails in Germany and how it affects the system stability. Our analysis indicates that intraday trading close to gate closure is highly affected by market participants reacting to the latest published system balance (SB). This behavior has a positive impact on system balancing. Intraday trading close to gate closure reduces both the required demand of balancing energy and high SBs up to 5% without causing a critical overshoot of the system.

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A new approach for near real-time micro-CHP management in the context of power system imbalances – A case study

Cited by 14 publications

References 13 publications

Interactions between the design of short-term electricity markets in the CWE region and power system flexibility

Interactions between the design of short-term electricity markets in the CWE region and power system flexibility

Intraday imbalance optimization: incentives and impact of strategic intraday bidding behavior

Passive Balancing Through Intraday Trading: Whether Interactions Between Short-Term Trading and Balancing Stabilize Germany’s Electricity System

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