process between different organizations similar to a market system is possible. Here the organization Varmelast does the cost optimization of the biggest heat generators day ahead and intraday. They include some of the main grid bottlenecks and the producers are organized in different (mainly non- profit) organizations. Nevertheless, the Danish companies are mostly municipal and therefore see less need for markets or competition. So how can the presented concepts be evaluated against existing structures? Performance analysis of different economic systems is typically quite complex. As a first step, the main technical issue—the smart district heating market itself— has to be developed and simulated as a spot market and is in development in the course of the author’s PhD thesis. The markets are then planned to be implemented as a prototype within the research project Smart Heat Grid Hamburg and future research projects in the DHS of Hamburg Energie GmbH in Hamburg’s district Wilhelmsburg. The main objective is to investigate if the markets improve the macroeconomic value.
Figure 2: Principle of the Auction Mechanism
he short-term planning will be split to two time-scales. A day aheadmarket and an intraday market. Because of the interaction with electrical markets, a day ahead market should be finished before the electricity spot market. This allows electrical bound generators like combined heat andpower plants, direct electrical heating or heat pumps the participation in the electrical market. To reduce the need of thermal compensation through boilers, an additional intraday market can be introduced. The technical planning mechanism should be comparable to the day ahead mechanism, but may include a higher resolution. The main objective of this market is to balance forecast deviations (e. g. solar generation or demand) as well as generator failures. It can also achieve a higher interaction with the electricity markets. In addition, short-term flexibilities in the DHS can be included like thermal demand side integration.
COMPETITION AS KEY TO A SUSTAINABLE AND COST-EFFECTIVE DISTRICT HEATING SYSTEM
The presented concept shows a solution that could tackle the technical challenges as well as the financial barriers for an open generation market to enable competition between different heat producers. The capacity market in combination with the price adjustment clauses guarantee security for investments and prevent gambling. The smart market approach for the short term markets include the technical specifications of the DHS and will secure to select the cheapest generators. It is also important to mention, that competition through TPA and liberalization is not necessarily implicating a privatization of all parts of the organization. The mechanism described in this article could be partly or completely owned by municipal or non-profit organizations.
IMPLEMENTATION AND EVALUATION OF THE CASCADE MARKET MECHANISM
The procedures introduced in this article are based on existing processes that are already implemented in most of the DHS companies today. Questions regarding the requirements for the investment and operational planning have been discussed in some interviews in February of this year with Danish companies. For the concept of a spot market, the DHS in Greater Copenhagen shows that an overall scheduling
For further information please contact: Peter Lorenzen, email@example.com
DBDH is hosting a series of webinars this fall. Learn more
E N E R G Y A N D E N V I R O N M E N T
Made with FlippingBook - Online Brochure Maker