Volume 29: Closing Carbon Cycles – A Transformation Process Involving Technology, Economy, and Society: Part IV

An Optimal Bidding Model to Market Flexibility on the Balancing Electricity Markets Gärtner, Röger, Heller

https://doi.org/10.46855/energy-proceedings-10292

Abstract

In order to stabilize short-term fluctuations in the network frequency, flexibility is offered on balancing electricity markets. With the reformation of the German balancing markets and the opportunity to market secondary balancing energy independently of capacity, short-term flexibilities can now be traded more easily. In this paper, we describe a robust optimization problem for marketing balancing power in these markets. Starting from forecasts on acceptance probabilities and activation durations estimated from historical values, we compute price-quantity pairs that define bids placed on the reserve markets. We present a backtesting study over the period 04/2021 to 11/2021 and, thus, evaluate the potential of flexibility marketing on the secondary control markets.

Keywords electricity markets, balancing energy, robust optimization, optimal bidding, demand side management, flexibility marketing

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