1. Profitability Analysis Of Industrial Energy Flexibility Within the German Control Reserve Market
- Author
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Bezold, Vincent, Mutz, Alexander, Pelger, Philipp, Torolsan, Kerim, Sauer, Alexander, Bezold, Vincent, Mutz, Alexander, Pelger, Philipp, Torolsan, Kerim, and Sauer, Alexander
- Abstract
The transition from fossil fuels to renewables is reshaping the energy landscape, leading to increased volatility in energy supply. This shift presents significant challenges, particularly given that traditional energy markets were designed for predictable, fossil fuel-based generation. In this context, the ancillary services market is crucial for maintaining grid stability and reliability. Despite its importance, there is a significant lack of established methods for assessing the profitability of industrial companies’ participation in the ancillary services market, particularly in terms of offering energy flexibility. The usage of energy flexibility has been primarily considered for optimizing costs in the spot market. This paper extends this consideration to the ancillary services market, introducing a novel method for economically evaluating industrial energy flexibility within the German control reserve market. It provides an in-depth understanding of the market mechanisms and a profitability analysis for the participation of industrial consumers. It also investigates the stability of the optimal bidding values and gives a guidance for future bids.
- Published
- 2024