Influence of Fluctuating Electricity Prices due to Renewable Energies on Heat Storage Investments

Katrin Schulz (), Matthias Schacht () and Brigitte Werners ()
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Katrin Schulz: Ruhr University Bochum
Matthias Schacht: Ruhr University Bochum
Brigitte Werners: Ruhr University Bochum

A chapter in Operations Research Proceedings 2013, 2014, pp 421-427 from Springer

Abstract: Abstract German electricity prices are highly influenced by the volatile and stochastic residual power load due to renewable energies. This constitutes a major challenge for energy providers, especially for municipal supply companies which provide their customers with district heat as well. Efficient and flexible combined heat and power (CHP) plants are used to fulfill the unsteady loads for heat and residual power. A heat storage offers the possibility to decouple generation from demand with respect to time. This leads to additional flexibility as it allows a power price-oriented operation of the CHP plant in order to realize profits by trading electricity on the spot market. In order to support the investment decision of a municipal energy provider, we quantify the influence of the value drivers for a heat storage which can be determined by specific demand patterns and price developments in day-to-day operations. Integrating a well-known linear model we optimize the different plant operations and power trade in a generation portfolio with and without heat storage. Results quantify the value of the storage depending on the extent and duration of fluctuations in the feed-in of renewable energies and corresponding prices.

Keywords: Renewable Energy; Heat Storage; Electricity Price; Power Demand; Spot Market (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/978-3-319-07001-8_57

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