HOT|COOL NO. 2/2023 "AI & Digitalization"

Factbox 1:

exported, which shall be offered to the variable operation and maintenance costs of the wind turbines.

clock the day before to decide for each of the hours tomorrow how much electricity he wants to sell and how much electrici- ty he wants to buy in each hour, and at which prices. Because of the large thermal storages, the manager must look more days ahead, when deciding the bids for tomorrow as well as considering the heat amount in the thermal storage right now. His decisions are based on forecasts more days ahead on wind velocity, solar radiation, ambient temperatures, and fore- casts more days ahead for Day-ahead prices. Furthermore, what complicates the Day-ahead bidding in Hvide Sande, is that the wind turbines are behind own me- ter (is private wire operated). This means that the electricity delivered by the wind turbines and used by the heat pump avoids grid and tax payment. Therefore, the sale price bids for the wind turbine production shall typically be split into two parts. The amount of the wind turbine production matching the consumption of the heat pump shall be offered at a lower price compared to the wind turbine production that will be Present production units and storages at Hvide Sande District Heating: • 2 natural gas fired gas engine Combined Heat and Power units each 3.7 MW-elec and 4.9 MW-heat • 3 wind turbines each 3 MW-elec • Heat pump of 5 MW-heat • Electrical boiler of 10 MW-heat • Solar collector of 9,500 m2 • Hot water storages at plant of 2,000 m3 • Hot water storages at solar collector site of 1,200 m3 • Gas peak boilers

Hvide Sande participates in three out of four balancing markets Factbox 2 gives an overview of the balancing markets in West Denmark. Hvide Sande District Heating participates regularly in three out of these four balancing markets. It participates in the FCR, mFRR and mFRR EAM markets. Participating in FCR To participate in the FCR market, bids must be made symmet- ric in 4-hour blocks and shall be able to be activated in 30 sec- onds. The electrical boiler can easily fulfil an activation in 30 seconds. Note that to make a symmetric bid on the electrical boiler, the offered capacity has at least to be traded in Day- ahead market in the same 4-hour block. As an example, if a 2 MW symmetric bid in FCR is given for the electrical boiler from 00:00 to 04:00 tomorrow, at least 2 MW must be purchased in the Day-ahead market in the same hours, which will allow both positive and negative frequency regulation of 2 MW to be made on the electrical boiler. Also, FCR-bids, are regularly being made on the CHPs. A gas engine CHP cannot regulate in 30 seconds if it is not running. So, what Hvide Sande District Heating has done is only to sell 80% of the CHP capacity in a certain 4-hour block in the Day- ahead market. Thus, being able to offer the remaining 20% of the capacity in the FCR market. Participating in mFRR The mFRR market is an hourly reserve market. Winning a mFRR capacity bid in a certain hour tomorrow, gives an obligation for the plant to make an offer of this capacity into the mFRR EAM market. However, the plant decides itself at which prices the upward regulation is offered.

When it is windy or sunny it will often be cheaper to produce the heat on the heat pump, the electrical boiler, or the solar

Factbox 2:

The balancing markets in West Denmark FCR, Frequency Containment Reserves The FCR market is a rather small market, and as the name of the market indicate, this market shall not bring the frequency back to 50 Hz, but only contain a frequency problem, e.g., stop a reduction in frequency. A production unit shall be able to be activated in maxi- mum 30 seconds, and the activation shall be able to be maintained 20 minutes. The bids are split into 4-hour blocks and is symmetric, that is the won FCR shall be able to deliver both positive and negative frequency regulation. Gate closure is 8 a.m. the day before, and there is Marginal pricing. That is all won bids gets the same price. There is no payment for energy activation.

FRR, automatic Frequency Restoration Reserves Month ahead market. The reaction time is maximum 15 minutes. The bids are symmetric. The prices are settled as Pay-as-bid. mFRR, manual Frequency Restoration Reserves The reaction time is maximum 15 minutes. Asymmetric bids are allowed, either for upwards regula- tion or for downward regulation. Hourly bids and there are Marginal pricing. Gate closure 9.30 the day before. mFRR EAM, Energy Activation Market in mFRR Gate closure is one hour before the operating hour. For won mFRR bids in a certain hour it is obligatory to make an offer of this capacity into the mFRR EAM in that hour. Marginal pricing. The mFRR EAM market is often called the regulating power market.

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