(205g) Intensified Electricity Market Participation of Processes Industries

With the ongoing and planned electrification of chemical processes, process industries will become increasingly dependent on the availability and cost of electricity. Consequently, many processes need to be more attuned to opportunities within electricity markets, introducing new dynamic aspects into the established scope of industrial demand-side management (Merkert et al., 2015). Beyond day-ahead energy trading, this scope can expand to include active participation in maintaining power grid stability during frequency events. In this talk, we examine a simplified steel-making process, modeled using the discrete-time RTN framework (Pantelides, 1994), similar in structure to that presented in Harjunkoski and Grossmann (2001). To manage the demand-side capabilities of the process, we build upon the concept from Castro et al. (2009), enhancing it with a battery energy storage system (BESS) to achieve additional flexibility. An integrated BESS offers further opportunities (Padmanabhan et al., 2020), including participation in reserve markets, which can reduce electricity costs through the bidding process for various ancillary products.

The increased interdependencies with power infrastructure mean that disturbances or changes in production processes require countermeasures at the power grid level to maintain stability. The growing number of renewable energy source (RES) generation units introduces supply-side volatility, making process electrification an opportunity for flexibility through advanced demand-side management features. Bidding strategies are discussed in Schäfer et al. (2019), and the integrated aspects between energy systems and electricity markets are highlighted in Gao et al. (2022). Tang et al. (2024) provide a comprehensive overview of the potential scope, and in this talk, we incorporate a BESS to support the balance between production processes and power grid operations. Additionally, we explore the bidding of various combinations of products (energy and ancillary products), as described in Hafiz et al. (2024), demonstrating that favorable conditions can significantly impact profitability.

References

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