Heuristic optimization of clusters of heat pumps: A simulation and case study of residential frequency reserve

The technological challenges of adapting energy systems to the addition of more renewables are intricately interrelated with the ways in which markets incentivize their development and deployment. Households with own onsite distributed generation augmented by electrical and thermal storage capacities (prosumers), can adjust energy use based on the current needs of the electricity grid. Heat pumps, as an established technology for enhancing energy efficiency, are increasingly seen as having potential for shifting electricity use and contributing to Demand Response (DR). Using a model developed and validated with monitoring data of a household in a plus-energy neighborhood in southern Germany, the technical and financial viability of utilizing household heat pumps to provide power in the market for Frequency Restoration Reserve (FRR) are studied. The research aims to evaluate the flexible electrical load offered by a cluster of buildings whose heat pumps are activated depending on selected rule-based participation strategies. Given the prevailing prices for FRR in Germany, the modelled cluster was unable to reduce overall electricity costs and thus was unable to show that DR participation as a cluster with the heat pumps is financially viable. Five strategies that differed in the respective contractual requirements that would need to be agreed upon between the cluster manager and the aggregator were studied. The relatively high degree of flexibility necessary for the heat pumps to participate in FRR activations could be provided to varying extents in all strategies, but the minimum running time of the heat pumps turned out to be the primary limiting physical (and financial) factor. The frequency, price and duration of the activation calls from the FRR are also vital to compensate the increase of the heat pumps’ energy use. With respect to thermal comfort and self-sufficiency constraints, the buildings were only able to accept up to 34% of the activation calls while remaining within set comfort parameters. This, however, also depends on the characteristics of the buildings. Finally, a sensitivity analysis showed that if the FRR market changed and the energy prices were more advantageous, the proposed approaches could become financially viable. This work suggests the need for further study of the role of heat pumps in flexibility markets and research questions concerning the aggregation of local clusters of such flexible technologies.Comisión Europea 69596

On the Participation of Power-To-Heat Assets in Frequency Regulation Markets—A Danish Case Study

Due to the new green energy policies, district heating companies are being increasingly encouraged to exploit power-to-heat assets, e.g., heat pumps and electric boilers, in their distribution networks besides the traditional central combined heat and power units. The increased utilization of these assets will generate a more complex interaction between power distribution grids and district heating networks including markets for provision of ancillary services. Enabling the participation of power-to-heat units in the ancillary service markets, e.g., frequency reserves, may increase the revenue streams for assets’ owners. However, some technical challenges must first be addressed, including optimization of portfolios of assets that accounts for ancillary service markets, new coordination and operational schemes for portfolio of assets, increase data exchange and interactions with transmission system operators, and new local control schemes for units. This paper proposes a systematic model based design approach for assessment of provision of frequency regulation by power-to-heat assets using the smart grid architecture model. The proposed approach is demonstrated in a Real-Time Control Hardware-in-the-Loop laboratory environment

The impact of electricity storage on wholesale electricity prices

This paper analyzes the impact of electricity storage on the production cost of a power system and the marginal cost of electricity (electricity price) using a unit commitment model. Also real world data has been analyzed to verify the e®ect of storage operation on the electricity price using econometric techniques. The unit commitment model found that the deployment of a storage system reduces the fuel cost of the power system but increases the average electricity price through its e®ect on the power system operation. However, the reduction in the production cost was found to be less than the increase in the consumer's cost of electricity resulting in a net increase in costs due to storage. Di®erent storage and CO2 price scenarios were investigated to study the sensitivity of these results. The regression analysis supports the unit commitment results and ¯nds that the presence of storage increases average wholesale electricity prices for the case study system.Electricity storage; Electricity price; Production cost