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Active participation of industrial enterprises in electricity markets - a generic modeling approach
(2021)
Industrial enterprises represent a significant portion of electricity consumers with the potential of providing demand-side energy flexibility from their production processes and on-site energy assets. Methods are needed for the active and profitable participation of such enterprises in the electricity markets especially with variable prices, where the energy flexibility available in their manufacturing, utility and energy systems can be assessed and quantified. This paper presents a generic model library equipped with optimal control for energy flexibility purposes. The components in the model library represent the different technical units of an industrial enterprise on material, media, and energy flow levels with their process constraints. The paper also presents a case study simulation of a steel-powder manufacturing plant using the model library. Its energy flexibility was assessed when the plant procured its electrical energy at fixed and variable electricity prices. In the simulated case study, flexibility use at dynamic prices resulted in a 6% cost reduction compared to a fixed-price scenario, with battery storage and the manufacturing system making the largest contributions to flexibility.
One of the major challenges impeding the energy transition is the intermittency of solar and wind electricity generation due to their dependency on weather changes. The demand-side energy flexibility contributes considerably to mitigate the energy supply/demand imbalances resulting from external influences such as the weather. As one of the largest electricity consumers, the industrial enterprises present a high demand-side flexibility potential from their production processes and on-site energy assets. In this direction, methods are needed with a focus on enabling the energy flexibility and ensure an active participation of such enterprises in the electricity markets especially with variable prices of electricity. This paper presents a generic model library for an industrial enterprise implemented with optimal control for energy flexibility purposes. The components in the model library represent the typical technical units of an industrial enterprise on material, media, and energy flow levels with their operative constraints. A case study of a plastic manufacturing plant using the generic model library is also presented, in which the results of two simulation with different electricity prices are compared and the behavior of the model can be assessed. The results show that the model provides an optimal scheduling of the manufacturing system according to the variations in the electricity prices, and ensures an optimal control for utilities and energy systems needed for the production.