A Two-Stage Stochastic Optimisation Methodology for the Operation of a Chlor-Alkali Electrolyser under Variable DAM and FCR Market Prices

Jens Baetens, Jeroen D. M. De Kooning, Greet Van Eetvelde and Lieven Vandevelde
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Jens Baetens: Electrical Energy Laboratory (EELAB), Department of Electromechanical, Systems and Metal Engineering, Ghent University, Tech Lane Ghent Science Park—Campus Ardoyen, Technologiepark-Zwijnaarde 131, 9052 Ghent, Belgium
Jeroen D. M. De Kooning: Electrical Energy Laboratory (EELAB), Department of Electromechanical, Systems and Metal Engineering, Ghent University, Tech Lane Ghent Science Park—Campus Ardoyen, Technologiepark-Zwijnaarde 131, 9052 Ghent, Belgium
Greet Van Eetvelde: Energy & Cluster Management, Department of Electromechanical, Systems and Metal Engineering, Ghent University, Tech Lane Ghent Science Park—Campus Ardoyen, Technologiepark-Zwijnaarde 131, 9052 Ghent, Belgium
Lieven Vandevelde: Electrical Energy Laboratory (EELAB), Department of Electromechanical, Systems and Metal Engineering, Ghent University, Tech Lane Ghent Science Park—Campus Ardoyen, Technologiepark-Zwijnaarde 131, 9052 Ghent, Belgium

Energies, 2020, vol. 13, issue 21, 1-19

Abstract: The increased penetration of renewable energy sources in the electrical grid raises the need for more power system flexibility. One of the high potential groups to provide such flexibility is the industry. Incentives to do so are provided by variable pricing and remuneration of supplied ancillary services. The operational flexibility of a chlor-alkali electrolysis process shows opportunities in the current energy and ancillary services markets. A co-optimisation of operating the chlor-alkali process under an hourly variable priced electricity sourcing strategy and the delivery of Frequency Containment Reserve (FCR) is the core of this work. A short term price prediction for the Day-Ahead Market (DAM) and FCR market as input for a deterministic optimisation shows good results under standard DAM price patterns, but leaves room for improvement in case of price fluctuations, e.g., as caused by Renewable Energy Sources (RES). A two-stage stochastic optimisation is considered to cope with the uncertainties introduced by the exogenous parameters. An improvement of the stochastic solution over the deterministic Expected Value (EV) solution is shown.

Keywords: stochastic modelling; constrained optimisation; chlor-alkali; day-ahead market; frequency containment reserve (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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