Utilization of Electric Prosumer Flexibility Incentivized by Spot and Balancing Markets

The use of energy flexibility to balance electricity demand and supply is becoming increasingly important due to the growing share of fluctuating energy sources. Electric flexibility regarding time or magnitude of consumption can be offered in the form of different products on electricity spot and balancing power markets. In the wake of the energy transition and because of new possibilities provided by digitalization, the decision intervals on these markets are becoming shorter and the controllability of electricity consumption and generation more small-scale. This evolution opens up new chances for formerly passive energy consumers.

This thesis shows how electric flexibility can be monetized using the application example of commercial sites. These are often multimodal energy systems coupling electricity, heat, and gas, and thus deliver high flexibility potential. To leverage this potential, a comprehensive picture of demand-side flexibilization is provided and used to propose an energy management system and optimization for cost-optimized device schedules. The cost-optimization considers two simultaneous incentives: variable day-ahead spot market prices and revenues for offering possible schedule adjustments to the automatic Frequency Restoration Reserve (aFRR) balancing market.
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To solve the formulated optimization problem, a genetic algorithm is presented, tailored to the specific needs of consumers. In addition to addressing the trade-off between the two competing markets, the algorithm inherently considers the uncertain activation of aFRR bids and related catch-up effects. An analysis of the activation behavior of aFRR balancing market bids, based on a developed ex-post simulation, forms an important decision basis for the optimization. Finally, a simulation study concentrating on battery energy storage systems and combined heat and power plants on the consumer side enables the quantitative discussion of the optimization potential.

The results show that consumers considering both markets simultaneously can achieve cost benefits that are up to multiples of those for pure day-ahead price optimization, despite the stochastic nature of aFRR balancing power activations. In conclusion, this thesis enables formerly passive electricity consumers to assume the role of alternative balancing service providers, hence contributing to the economic and reliable operation of power grids characterized by a high share of renewable energy sources.