A novel bidding method for combined heat and power units in district heating systems

We propose a bidding method for the participation of combined heat and power (CHP) units in the day-ahead electricity market. More specifically, we consider a district heating system where heat can be produced by CHP units or heat-only units, e.g., gas or wood chip boilers. We use a mixed-integer linear program to determine the optimal operation of the portfolio of production units and storages on a daily basis. Based on the optimal production of subsets of units, we can derive the bidding prices and amounts of electricity offered by the CHP units for the day-ahead market. The novelty about our approach is that the prices are derived by iteratively replacing the production of heat-only units through CHP production. This results in an algorithm with a robust bidding strategy that does not increase the system costs even if the bids are not won. We analyze our method on a small realistic test case to illustrate our method and compare it with other bidding strategies from literature, which consider CHP units individually. The analysis shows that considering a portfolio of units in a district heating system and determining bids based on replacement of heat production of other units leads to better results

A new method to energy saving in a micro grid

Optimization of energy production systems is a relevant issue that must be considered in order to follow the fossil fuels consumption reduction policies and CO2 emission regulation. Increasing electricity production from renewable resources (e.g., photovoltaic systems and wind farms) is desirable but its unpredictability is a cause of problems for the main grid stability. A system with multiple energy sources represents an efficient solution, by realizing an interface among renewable energy sources, energy storage systems, and conventional power generators. Direct consequences of multi-energy systems are a wider energy flexibility and benefits for the electric grid, the purpose of this paper is to propose the best technology combination for electricity generation from a mix of renewable energy resources to satisfy the electrical needs. The paper identifies the optimal off-grid option and compares this with conventional grid extension, through the use of HOMER software. The solution obtained shows that a hybrid combination of renewable energy generators at an off-grid location can be a cost-effective alternative to grid extension and it is sustainable, techno-economically viable, and environmentally sound. The results show how this innovative energetic approach can provide a cost reduction in power supply and energy fees of 40% and 25%, respectively, and CO2 emission decrease attained around 18%. Furthermore, the multi-energy system taken as the case study has been optimized through the utilization of three different type of energy storage (Pb-Ac batteries, flywheels, and micro—Compressed Air Energy Storage (C.A.E.S.)

An optimization model for multi-biomass tri-generation energy supply

In this paper, a decision support system (DSS) for multi-biomass energy conversion applications is presented. The system in question aims at supporting an investor by thoroughly assessing an investment in locally existing multi-biomass exploitation for tri-generation applications (electricity, heating and cooling), in a given area. The approach followed combines use of holistic modelling of the system, including the multi-biomass supply chain, the energy conversion facility and the district heating and cooling network, with optimization of the major investment-related variables to maximize the financial yield of the investment. The consideration of multi-biomass supply chain presents significant potential for cost reduction, by allowing spreading of capital costs and reducing warehousing requirements, especially when seasonal biomass types are concerned. The investment variables concern the location of the bioenergy exploitation facility and its sizing, as well as the types of biomass to be procured, the respective quantities and the maximum collection distance for each type. A hybrid optimization method is employed to overcome the inherent limitations of every single method. The system is demand-driven, meaning that its primary aim is to fully satisfy the energy demand of the customers. Therefore, the model is a practical tool in the hands of an investor to assess and optimize in financial terms an investment aiming at covering real energy demand. optimization is performed taking into account various technical, regulatory, social and logical constraints. The model characteristics and advantages are highlighted through a case study applied to a municipality of Thessaly, Greece. (C) 2008 Elsevier Ltd. All rights reserved