Competition Effects of Simultaneous Application of Flexibility Options Within an Energy Community
(2018)
As part of an increased diffusion of decentralized renewable energy technologies, an additional need for flexibility arises. Studies indicate that operating battery storage systems for multiple uses as community electricity storage system (CES) promises superior benefits. This seems decisive, since cheaper flexibility options such as demand response (DR) are more applicable and might further reduce the market size for storage facilities. This research paper aims to analyze the competition effects of CES with simultaneous application of DR. The optimization results of the synthetic case studies provide insights in the profitability level, the service provision and the flexibility potential. While even under requested legal circumstances a CES is only partially profitable, the economic situation improves in terms of an optimal storage utilization. This, however, is reduced through competition effects with DR.
The reliable integration of decentralized energy technologies and the associated system transformations represent a challenging task. Taking into account existing cross-sectoral demand and supply structures, diverse communities require specific solutions. With an appropriate business model, municipal utilities might be capable to transform themselves in a successful way. For better decision-making, they need to investigate under what conditions certain business cases might represent a sustainable part of the future system and their future portfolio. On the basis of an innovative multi-model and cross-sector approach, this research paper aims to assess opportunities of such business models in terms of four strategic targets: affordability, profitability, autarky and ecology. The results of the combined evaluation of synthetic case studies provide insights under what conditions different business models show positive performance.
Towards integrated multi-modal municipal energy systems: An actor-oriented optimization approach
(2018)
Against the backdrop of a changing political, economic and ecological environment, energy utilities are facing several challenges in many countries. Due to an increasing decentralization of energy systems, the conventional business could be undermined. Yet the reliable integration of small-scale renewable technologies and associated system transformations could represent an opportunity as well. Municipal energy utilities might play a decisive role regarding successful transition. For better decision-making, they need to investigate under which conditions certain novel business cases can become a sustainable part of their future strategy. The development of the strategy is a challenging task which needs to consider different conditions as business portfolio, the customer base, the regulatory framework as well as the market environment. Integrated Multi-Modal Energy System (IMMES) models are able to capture necessary interactions. This research introduces a model-driven decision support system called Integrated Resource Planning and Optimization (IRPopt). Major aim is to provide managerial guidance by simulating the impact of business models considering various market actors. The mixed-integer linear programming approach exhibits a novel formal interface between supply and demand side which merges technical and commercial aspects. This is achieved by explicit modeling of municipal market actors on one layer and state-of-the-art technology components on another layer as well as resource flow relations and service agreements mechanism among and between the different layers. While this optimization framework provides a dynamic and flexible policy-oriented, technology-based and actor-related assessment of multi-sectoral business cases, the encapsulation in a generic software system supports the facilitation. Based on the actor-oriented dispatch strategy, flexibility potential of community energy storage systems is provided to demonstrate a real application.
Chlor-alkali electrolysis plays a significant role in Germany's electricity demand, with a share of >2%. It offers a promising avenue for leveraging demand response strategies. In times of escalating electricity prices, load shifting can help to maintain economic competitiveness of domestic industries. This study aims to assess the potential for electricity cost savings and related CO2 emission reductions through optimal load shifting practices for chlor-alkali electrolysis, considering both current and projected future electricity prices. The research employs the mixed-integer energy system modeling framework IRPopt to model and optimize a chlorine value chain under various scenarios. A sensitivity analysis is conducted to identify the primary factors driving electricity cost savings. The findings reveal that, based on the 2019 electricity price distribution (before pandemic and energy crisis), load shifting can yield electricity cost savings of 5.8% and CO2 emission reductions of 2.7%. As the share of variable renewable energy sources increases along with other driving factors, the electricity price spread is projected to rise from 28% in 2019 to an average of 87% in 2040 scenarios. Consequently, electricity cost savings rise up to 22% and CO2 emission reductions up to 10%. The primary drivers behind electricity cost savings include electricity price spreads and the utilization and operating range of the electrolyzer. In addition to the business-level advantages, the resulting decrease in residual load and lower CO2 emissions contribute to the integration of variable renewable energy sources and the achievement of decarbonization targets at the economic level.
