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Integration of flexible consumers in the ancillary service markets

Author

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  • Biegel, Benjamin
  • Westenholz, Mikkel
  • Hansen, Lars Henrik
  • Stoustrup, Jakob
  • Andersen, Palle
  • Harbo, Silas

Abstract

Flexible consumption devices are often able to quickly adjust the power consumption making these devices very well suited as providers of fast ancillary services such as primary and secondary reserves. As these reserves are among the most well-paid ancillary services, it is an interesting idea to let an aggregator control a portfolio of flexible consumption devices and sell the accumulated flexibility in the primary and secondary reserve markets. However, two issues make it difficult for a portfolio of consumption devices to provide ancillary services: First, flexible consumption devices only have a limited energy capacity and are therefore not able to provide actual energy deliveries. Second, it is often difficult to make an accurate consumption baseline estimate for a portfolio of flexible consumption devices. These two issues do not fit the current regulations for providing ancillary services. In this work we present a simple method based on the existing ancillary service markets that resolves these issues via increased information and communication technology. The method allows an aggregator to continuously utilize the markets for slower ancillary service to ensure that its portfolio is not driven towards the energy limitations resolving both the baseline issue and the energy limitation issue.

Suggested Citation

  • Biegel, Benjamin & Westenholz, Mikkel & Hansen, Lars Henrik & Stoustrup, Jakob & Andersen, Palle & Harbo, Silas, 2014. "Integration of flexible consumers in the ancillary service markets," Energy, Elsevier, vol. 67(C), pages 479-489.
  • Handle: RePEc:eee:energy:v:67:y:2014:i:c:p:479-489
    DOI: 10.1016/j.energy.2014.01.073
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    References listed on IDEAS

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    Cited by:

    1. Harbrecht, Alexander & McKenna, Russell & Fischer, David & Fichtner, Wolf, 2018. "Behavior-oriented modeling of electric vehicle load profiles: A stochastic simulation model considering different household characteristics, charging decisions and locations," Working Paper Series in Production and Energy 29, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    2. Shayesteh, E. & Amelin, M. & Soder, L., 2015. "Area equivalents for spinning reserve determination in interconnected power systems," Energy, Elsevier, vol. 88(C), pages 907-916.
    3. Fischer, David & Madani, Hatef, 2017. "On heat pumps in smart grids: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 342-357.
    4. Caumon, Pauline & Lopez-Botet Zulueta, Miguel & Louyrette, Jérémy & Albou, Sandrine & Bourasseau, Cyril & Mansilla, Christine, 2015. "Flexible hydrogen production implementation in the French power system: Expected impacts at the French and European levels," Energy, Elsevier, vol. 81(C), pages 556-562.
    5. Rivero Puente, Enrique Israel & Gerard, Helena & Six, Daan, 2018. "A set of roles for the evolving business of electricity distribution," Utilities Policy, Elsevier, vol. 55(C), pages 178-188.
    6. Pinto, Rui & Bessa, Ricardo J. & Matos, Manuel A., 2017. "Multi-period flexibility forecast for low voltage prosumers," Energy, Elsevier, vol. 141(C), pages 2251-2263.
    7. Roos, Aleksandra & Bolkesjø, Torjus Folsland, 2018. "Value of demand flexibility on spot and reserve electricity markets in future power system with increased shares of variable renewable energy," Energy, Elsevier, vol. 144(C), pages 207-217.
    8. Motalleb, Mahdi & Thornton, Matsu & Reihani, Ehsan & Ghorbani, Reza, 2016. "A nascent market for contingency reserve services using demand response," Applied Energy, Elsevier, vol. 179(C), pages 985-995.
    9. Carreiro, Andreia M. & Jorge, Humberto M. & Antunes, Carlos Henggeler, 2017. "Energy management systems aggregators: A literature survey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 1160-1172.
    10. Terreros, O. & Spreitzhofer, J. & Basciotti, D. & Schmidt, R.R. & Esterl, T. & Pober, M. & Kerschbaumer, M. & Ziegler, M., 2020. "Electricity market options for heat pumps in rural district heating networks in Austria," Energy, Elsevier, vol. 196(C).

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