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Bidding in German Electricity Markets—Opportunities for CHP Plants

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Operations Research Proceedings 2015

Part of the book series: Operations Research Proceedings ((ORP))

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Abstract

Since the liberalisation of the German energy markets, supply companies strive to gain additional revenues by trading in different electricity markets. Thus, trading strategies have to be adjusted to lower but more volatile energy prices caused by a rising share of renewable energy feed-in. Due to the increasing importance of combined heat and power (CHP) plants, an energy supply company is considered that operates a CHP plant with heat storage. A new modelling approach is presented to support generation companies scheduling their participation in two sequential electricity markets, the balancing market and the day-ahead spot market. In both markets, specific bidding procedures for trading exist. To derive optimal bidding strategies for CHP plants, we formulate the bidding problem as an innovative and detailed multistage stochastic programming model taking into account the sequencing of market clearing. The optimisation model simultaneously determines the operation of the CHP plant and heat storage device. An exemplary case study illustrates the benefit from coordinated bidding in sequential electricity markets.

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Authors and Affiliations

  1. Faculty of Management and Economics, Chair of Operations Research and Accounting, Ruhr University Bochum, Bochum, Germany

    Nadine Kumbartzky, Matthias Schacht, Katrin Schulz & Brigitte Werners

Authors
  1. Nadine Kumbartzky
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  2. Matthias Schacht
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  3. Katrin Schulz
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  4. Brigitte Werners
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Corresponding author

Correspondence to Nadine Kumbartzky .

Editor information

Editors and Affiliations

  1. Department of Business Administration, University of Vienna, Vienna, Austria

    Karl Franz Dörner

  2. Decision Sciences and Statistics (IDS) Department, ESSEC Business School of Paris, Cergy Pontoise Cedex, France

    Ivana Ljubic

  3. Department of Statistics and Operations Research, University of Vienna, Vienna, Austria

    Georg Pflug

  4. Operations Research and Control Systems, TU Wien, Vienna, Austria

    Gernot Tragler

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© 2017 Springer International Publishing Switzerland

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Kumbartzky, N., Schacht, M., Schulz, K., Werners, B. (2017). Bidding in German Electricity Markets—Opportunities for CHP Plants. In: Dörner, K., Ljubic, I., Pflug, G., Tragler, G. (eds) Operations Research Proceedings 2015. Operations Research Proceedings. Springer, Cham. https://doi.org/10.1007/978-3-319-42902-1_87

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