Chlor-alkali Process with Subsequent Polyvinyl Chloride Production─Cost Analysis and Economic Evaluation of Demand Response

Abstract

Demand response is a viable option to cope with the increasing demand for flexibility of an energy system based on renewables. Several studies have shown that the electricity-intensive chlor-alkali process has high potential. Previous research primarily focused on process engineering to determine technological flexibility potentials or optimal production scheduling. However, these potentials can only be realized if they are economically viable. This requires knowledge of the costs of a demand response, including their causes and dependencies, as well as an understanding of the necessary market conditions. Using a business management approach, we examine the economically viable demand response potentials. The cost is based on real data and the economic evaluation of marketing flexibility on a day-ahead market. The results lead to conclusions about relationships between costs and performed load change and the economic limit of demand response. Significant costs like accelerated membrane aging or anode degeneration depend on various load change parameters. These conclusions can be used to implement economic conditions in models for dispatch and scheduling or bidding strategies concerning the chlor-alkali process and similar electrochemical processes. We demonstrate that the chlor-alkali process with subsequent PVC manufacturing is economically viable under current market conditions.