Simplified model of integrated paper mill for optimal bidding in energy and reserve markets

• Due to the increased use of variable renewable energy sources, more capacity for reserves is required. Non-generating resources such as large industrial consumers can arbitrage energy prices and provide reserve capacity by exploiting the inherent flexibility in selected industrial processes. A large enough industrial consumer can capitalize on this flexibility through optimized bidding in electricity markets. In this work, the day-ahead cost minimization of a risk-averse pulp and paper mill is formulated as a two-stage stochastic problem, considering thermodynamic and electrical constraints. The bids in the energy and reserve markets are jointly optimized subject to price uncertainty as well as uncertainty of frequency realization. The results of a case study in Sweden display a significant economic benefit in exploiting the flexibility of integrated pulp and paper mills with electric boilers. The expected cost of the pulp and paper mill resulting from different strategies are compared and the risk-aversion of the pulp and paper mill is investigated. Reserve offers are mainly facilitated by fast-acting electric boilers and supported by flexibility in the steam network. We show that reserve offers can significantly improve the profitability of the pulp and paper mill.

Ämnesord

TEKNIK OCH TEKNOLOGIER  -- Elektroteknik och elektronik -- Annan elektroteknik och elektronik (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Electrical Engineering, Electronic Engineering, Information Engineering -- Other Electrical Engineering, Electronic Engineering, Information Engineering (hsv//eng)

TEKNIK OCH TEKNOLOGIER  -- Maskinteknik -- Energiteknik (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Mechanical Engineering -- Energy Engineering (hsv//eng)

TEKNIK OCH TEKNOLOGIER  -- Naturresursteknik -- Energisystem (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Environmental Engineering -- Energy Systems (hsv//eng)

Nyckelord

Ancillary services

Frequency reserves

Industrial demand response

Optimal bidding

Pulp and paper mill

Stochastic optimization

Boilers

Commerce

Paper

Papermaking machinery

Pulp

Pulp manufacture

Renewable energy resources

Stochastic systems

Cost minimization

Industrial consumers

Industrial processs

Inherent flexibility

Price uncertainty

Stochastic problems

Variable renewable energies

Paper and pulp mills

alternative energy

building

electricity generation

energy market

integrated approach

optimization

price dynamics

profitability

pulp and paper industry

residential energy

Capacity

Energy

Flexibility

Paper Mills

Sweden

Publikations- och innehållstyp

ref (ämneskategori)

art (ämneskategori)