Ancillary Services Offer Optimization for hydro-thermal generation portfolios
The ancillary services markets have become more interesting for energy producers, especially for hydro power, as these markets hold huge potentials for extra profit. Although there higher margin prospects, offering to the ancillary services markets requires an integrated decision making framework which is a challenge for energy producers. The decision between offering the energy to the spot or an extremely complex and a risky task. The crucial challenges have been resolved in our solution. Our solution concisely:
Optimal integrated decision about sales/purchases of
electricity,
fuels,
ancillary services
in multiple markets. The decision framework captures the entire hydrothermal generation portfolio with all delivery obligations and price curves of different markets.
Contents
Quantification of opportunity costs of ancillary services delivery
Stochastic offer optimization: Optimization of the ancillary services offer decisions under consideration of short-term uncertainties
Stochastic long-term optimization: Involvement of the uncertainty about ancillary services (quantity/price) in the long-term resource management
Uncertainty of a call for ancillary services delivery and the amount of energy to deliver as well as the congruent amount of water and empty space to hold out
Technical restrictions of the transmission service operator for each turbine and pump in the form of different minimal power bounds for each ancillary services market
Detailed allocation of the offered type and amount of ancillary services to each turbine and pump
The result is an optimized ancillary services and spot market offer stating for each turbine, whether and how much it delivers power to the spot, primary, secondary and the tertiary market
Essential Inputs
Ancillary services products (delivery period and block structure)
Lot size
Minimal amount to offer
Remuneration for energy and power capacity
Call probabilities
Parameterization of assets according to the prequalification (eligibility concerning type and direction of frequency control, minimal spinning reserve etc.)
