Industrial Flexibility Investment Under Uncertainty: A Multi-Stage Stochastic Framework Considering Energy and Reserve Market Participation
By: Amund Norland , Lasse Skare , Ole Jakob Viken and more
Potential Business Impact:
Helps factories use clean energy and make money.
The global energy transition toward net-zero emissions by 2050 is expected to increase the share of variable renewable energy sources (VRES) in the energy mix. As a result, industrial actors will encounter more complex market conditions, characterized by volatile electricity prices, rising carbon costs, and stricter regulations. This situation calls for the industry to capitalize on opportunities in both spot-price arbitrage and reserve market participation, while also meeting future regulatory demands. This paper presents a multi-stage optimization framework that supports investment decisions in flexible assets and enables reserve market participation by delivering ancillary services. The framework incorporates investment decisions, spot- and reserve-market bidding, and real-time operation. Uncertainty in market prices and operational conditions is handled through a nodal formulation. A case study of a large industrial site in Norway is performed, comparing the investment decisions with future technology- and carbon pricing scenarios under varying market conditions.
Similar Papers
Optimal participation of energy communities in electricity markets under uncertainty. A multi-stage stochastic programming approach
Optimization and Control
Helps energy groups sell power for more money.
A Robust Optimization Framework for Flexible Industrial Energy Scheduling: Application to a Cement Plant with Market Participation
Systems and Control
Saves factories money by planning for power price changes.
Risk-constrained stochastic scheduling of multi-market energy storage systems
Optimization and Control
Saves money by predicting power price changes.