Bidding strategies for excess heat producers participating in a local wholesale heat market

Scientific paper - Original scientific paper

• Author: Borna Doračić
• Author: Matija Pavičević
• Author: Tomislav Pukšec
• Author: Neven Duić
• Author's institution: University of Zagreb; Faculty of Mechanical Engineering and Naval Architecture; (Department of Energy, Power and Environmental Engineering); (Power Engineering and Energy Management Chair)
• Scientific / art field, discipline and subdiscipline: TECHNICAL SCIENCES; Mechanical Engineering; Process Energy Engineering

Abstract (english)

The heating sector of the European Union covers 80% of the household’s final energy consumption,
which shows its relevance for the energy transition to the carbon neutral society, as set out in the
Green Deal. Since most of the heat demand is located in the high heat density areas, district heating
shows to be a promising solution for reducing the environmental impact of this sector, as it enables
the utilisation of renewable energy sources and the use of high efficiency production technologies.
An especially interesting source for district heating is excess heat from various industries and tertiary
sector buildings, which has a significant technical potential. However, to enable excess heat producers
to supply their heat to district heating, third-party access needs to be granted, which calls for a
deregulated heat market.
This work consists of analysing two different bidding strategies which can be applied on the heat
market: total cost and marginal cost biding. The focus here is to research the feasibility of the excess
heat sources when different bidding strategies are used, especially when low temperature excess heat
is considered, which has variable hourly costs due to the electricity demand for operating a heat
pump. The results show that, despite the increased capacity factor of low temperature excess heat
when marginal cost biding is used, it remains infeasible when supplying heat to the high temperature
district heating networks through a heat market. Therefore, lower temperature district heating is a
necessity for a feasible utilisation of low temperature excess heat. Finally, the effect of the power
market prices on the low temperature excess heat feasibility was analysed and it was shown that it is
significant, which led to the conclusion that introducing a higher share of renewables into the power
market could foster the utilisation of these heat sources.

• Keywords (english): District heating; Excess heat; Renewable energy sources; Heat market; Energy planning
• Language: english
• Publication type: Scientific paper - Original scientific paper
• Publication status: Published
• Peer review: Peer review - international
• Publication version: Published version
• Journal title: Energy Reports
• Numbering: vol. 8, pp. 3692-3703
• p-ISSN: 2352-4847
• DOI: https://doi.org/10.1016/j.egyr.2022.02.307
• URN:NBN: urn:nbn:hr:235:452879
• Publication: 2022
• Type of resource: Text
• Access conditions: Open access
• Created on: 2024-06-04 08:57:01