A novel bidding method for combined heat and power units in district heating systems

Abstract

We propose a bidding method for the participation of combined heat and power (CHP) units in the day-ahead electricity market. More specifically, we consider a district heating system where heat can be produced by CHP units or heat-only units, e.g., gas or wood chip boilers. We use a mixed-integer linear program to determine the optimal operation of the portfolio of production units and storages on a daily basis. Based on the optimal production of subsets of units, we can derive the bidding prices and amounts of electricity offered by the CHP units for the day-ahead market. The novelty about our approach is that the prices are derived by iteratively replacing the production of heat-only units through CHP production. This results in an algorithm with a robust bidding strategy that does not increase the system costs even if the bids are not won. We analyze our method on a small realistic test case to illustrate our method and compare it with other bidding strategies from literature, which consider CHP units individually. The analysis shows that considering a portfolio of units in a district heating system and determining bids based on replacement of heat production of other units leads to better results.

Transactive energy management systems: Mathematical models and formulations

“…P CHP and H CHP are the power and heat generation of the CHP, respectively. The DA bidding strategy for the CHP units was developed in [120]. In [121], the optimal scheduling of interconnected multiple EHs was proposed with the objective of minimising the energy cost and reducing CO 2 emissions, as given below: $$$$\begin{equation} \def\eqcellsep{&}\begin{array}{rcl} \text{Min Cost} &=& \displaystyle\mathop \sum \limits_{EH = 1}^{{N}_{EH}} \mathop \sum \limits_{t = 1}^{\rm time} \left(P_{EH,t}^{\rm grid,buy}\lambda _t^{\rm grid,buy} - P_{EH,t}^{\rm grid,sell}\lambda _t^{\rm grid,sell}\right) \\[12pt] &&+\, \text{Cost}_{\rm em} + \text{Cost}_{\rm op\& m} + \text{Cost}_{\rm DR} + \text{Cost}_{\rm ex} + \text{Cost}_{\rm water} \end{array} \end{equation}$$$$…”

An Innovative Coalitional Trading Model for a Biomass Power Plant Paired With Green Energy Resources

“…The amount of forestry residue fed into the biomassfired boiler is finite and limited by the available daily capacity, as modeled in (9). The biomass-fired boiler needs to work in the rated operational range, hence, the lower and upper bounds of biomass-fired boiler's generated power are enforced in (10), whereas Equation (11) ensures that it is equal to the power conveyed to the thermal energy storage and the BCS powerblock. Indeed, (11) is the thermal energy balance of the biomass-fired boiler.…”

“…In both [7], [8], the trading problem for a sole concentrating solar power facility was provided, while authors in [7] focused on the trading in day-ahead energy, reserve, and regulation markets, but on the other hand, the trading model proposed in [8] centered on the day-ahead energy market. In contrast with the vast research on the trading of wind parks and concentrating solar power facilities, limited works emphasized the BPP's trading problem [9], [10]. In [9], a stochastic trading approach for a BPP aiming to derive day-ahead and real-time participation strategies was suggested.…”

“…In [9], a stochastic trading approach for a BPP aiming to derive day-ahead and real-time participation strategies was suggested. A bidding strategy structure for a combined heat and power unit taking advantage of a biomass-fired boiler in the day-ahead market was studied in [10].…”

Day-Ahead and Intraday Dispatch of an Integrated Biomass-Concentrated Solar System: A Multi-Objective Risk-Controlling Approach

“…Yang et al [6] introduced an expansion planning model for the coupled electric power system and biomass delivery networks using a multi-stage stochastic programming framework. In [7], Blanco et al developed a self-scheduling model for combined heat and power systems in the day-ahead market considering wood chips and natural gas boilers for the intended combined heat and power system. Wang [8] et al proposed a scheduling model for optimal operation of an integrated solarbiomass power plant.…”