Market Integration of Excess Heat

Excess heat will be an important heat source in
future carbon-neutral district heating systems. A barrier to
excess heat integration is the lack of appropriate scheduling
and pricing systems for these producers, which generally have
small capacity and limited flexibility. In this work, we formulate
and analyze two methods for scheduling and pricing excess
heat producers: self-scheduling and market participation. In the
former, a price signal is sent to excess heat producers, based on
which they determine their optimal schedule. The latter approach
allows excess heat producers to participate in a market clearing.
In a realistic case study of the Copenhagen district heating
system, we investigate market outcomes for the two excess heat
integration paradigms under increasing excess heat penetration.
An important conclusion is that in systems of high excess heat
penetration, simple price signal methods will not suffice, and
more sophisticated price signals or coordinated dispatch become
a necessity.

Publication supported by EMB3Rs project.