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Report RSE 18001252

An overview on "demand" participation in electricity balancing market: assessment of possible contribution from industrial customers and potential benefits for them



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A. Cavaliere (RSE SpA)

GESTDOMANDA 2017 - Demand Side Management

The study analyzes the possibility that industrial customers participate in the balancing market by offering the availability to modify their withdrawal profile; on the basis of the actual consumption data of a certain number of users belonging to different production sectors, the extent of the contribution that could be offered and the economic benefit potentially achievable by the user involved are assessed

In the context of the management of electricity demand, some recent initiatives have paved the way for the possibility that the dispatching services market admits subjects who have so far been excluded. In particular, the resolution 300/2017 of AEEGSI (now ARERA) has enabled pilot projects that allow small-size power units – less than 10 MW that up to now have been required to gain access to the markets of energy – as well as consumption units and mixed units (production and consumption) to aggregate each other and offer services necessary for the stable operation of the electricity grid: this has opened a period in which the real effectiveness of these possible new resources can be verified.

This document describes a survey that was carried out in order to quantify the contribution that some industrial users could offer in terms of services to the grid, and the economic benefit they could derive from it; specifically, the survey dealt with industrial loads ranging between a few tens of kW and a few MW.

The analysis was carried out on the basis of actual data of power consumption of considered industrial customers, which were used to define their standardised absorption profiles from the grid; the amount and duration of theoretically feasible power curtailment at each time of the day were deducted fromthese, with the constraint that this reduction was associated with the delay – no more than 24 hours – of an activity, and not its suppression.

The economic benefit that may result to the customers offering the service was evaluated on the basis of the difference between prices of electricity recorded on the day-ahead market and on the balancingmarket.

This report documents and details the analysis, highlighting the conditions under which it was developed and results obtained, revealing how, working consistently with the rules now being tested, just in someof the examined cases the profit that it would be possible to achieve by bidding energy on balancing market would be adequate to compensate for the effort necessary to do it.

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