Optimal scheduling of a P2G plant in dynamic Power Heat and Gas markets

Robert Weiss, Jouni Savolainen, Pasi Peltoniemi, Eero Inkeri

Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientific

Abstract

This paper presents a techno-economic optimization study of the operation of a Power-to-Gas (PtG) process. PtG is one option for long-term energy storage in solar and wind dominated energy systems, but provides also short term dynamic opportunities that could be utilized in existing power markets to enhance PtG profitability. The scheduling feasibility and profitability is dependent on PtG process characteristics as well as the dynamic markets for wholesale power, regulating power, gases and heat. Market characteristics, such as power bid structures and timings, differ clearly for different market types, areas and countries, as well as local grid conditions and dynamic demands on produced gases and waste heat. We show shortly the differing market situations in some representative EU countries. Completely deregulated wholesale and control power markets reflect the power balance situation for several time horizons and real need for additional balancing capacity. In this market environment, the schedule when to provide regulating power, operate in primary frequency control and when to only schedule pure gas production could be determined beforehand from cost-efficient bidding in each market. Other market models result in different PtG operation and balancing power availability. We assess a sample of representative 24 hour periods in two countries with very differing wholesale and control power markets characteristics. In the assessment, the operation optimization is applied on a future example PtG process consisting of commercially available large alkaline electrolysers, H2- and O2- compression and storages, O2 consumer like pulp industry, and methanation with feed into the gas grid. Operation schedule dynamics are validated with a detailed dynamic process simulation model of the process. In the assessment examples, differing operational profitability are shown for the largely differing energy market operation conditions. Also, sensitivities to CO2-allowance price and selling "green" synthetic natural gas (SNG) to the mobility sector are shown.
Original languageEnglish
Title of host publicationConference Proceedings of the 10th International Renewable Energy Storage Conference (IRES 2016)
PublisherEUROSOLAR The European Association for Renewable Energy
Publication statusPublished - 2016
MoE publication typeNot Eligible
Event10th International Renewable Energy Storage, IRES 2016 - Düsseldorf, Germany
Duration: 15 Mar 201617 Mar 2016

Conference

Conference10th International Renewable Energy Storage, IRES 2016
Abbreviated titleIRES 2016
CountryGermany
CityDüsseldorf
Period15/03/1617/03/16

Fingerprint

Scheduling
Gases
Profitability
Hot Temperature
Methanation
Paper and pulp industry
Waste heat
Energy storage
Wind power
Natural gas
Sales
Availability
Economics
Power markets
Costs

Cite this

Weiss, R., Savolainen, J., Peltoniemi, P., & Inkeri, E. (2016). Optimal scheduling of a P2G plant in dynamic Power Heat and Gas markets. In Conference Proceedings of the 10th International Renewable Energy Storage Conference (IRES 2016) EUROSOLAR The European Association for Renewable Energy.
Weiss, Robert ; Savolainen, Jouni ; Peltoniemi, Pasi ; Inkeri, Eero. / Optimal scheduling of a P2G plant in dynamic Power Heat and Gas markets. Conference Proceedings of the 10th International Renewable Energy Storage Conference (IRES 2016). EUROSOLAR The European Association for Renewable Energy, 2016.
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Weiss, R, Savolainen, J, Peltoniemi, P & Inkeri, E 2016, Optimal scheduling of a P2G plant in dynamic Power Heat and Gas markets. in Conference Proceedings of the 10th International Renewable Energy Storage Conference (IRES 2016). EUROSOLAR The European Association for Renewable Energy, 10th International Renewable Energy Storage, IRES 2016, Düsseldorf, Germany, 15/03/16.

Optimal scheduling of a P2G plant in dynamic Power Heat and Gas markets. / Weiss, Robert; Savolainen, Jouni; Peltoniemi, Pasi; Inkeri, Eero.

Conference Proceedings of the 10th International Renewable Energy Storage Conference (IRES 2016). EUROSOLAR The European Association for Renewable Energy, 2016.

Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientific

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N2 - This paper presents a techno-economic optimization study of the operation of a Power-to-Gas (PtG) process. PtG is one option for long-term energy storage in solar and wind dominated energy systems, but provides also short term dynamic opportunities that could be utilized in existing power markets to enhance PtG profitability. The scheduling feasibility and profitability is dependent on PtG process characteristics as well as the dynamic markets for wholesale power, regulating power, gases and heat. Market characteristics, such as power bid structures and timings, differ clearly for different market types, areas and countries, as well as local grid conditions and dynamic demands on produced gases and waste heat. We show shortly the differing market situations in some representative EU countries. Completely deregulated wholesale and control power markets reflect the power balance situation for several time horizons and real need for additional balancing capacity. In this market environment, the schedule when to provide regulating power, operate in primary frequency control and when to only schedule pure gas production could be determined beforehand from cost-efficient bidding in each market. Other market models result in different PtG operation and balancing power availability. We assess a sample of representative 24 hour periods in two countries with very differing wholesale and control power markets characteristics. In the assessment, the operation optimization is applied on a future example PtG process consisting of commercially available large alkaline electrolysers, H2- and O2- compression and storages, O2 consumer like pulp industry, and methanation with feed into the gas grid. Operation schedule dynamics are validated with a detailed dynamic process simulation model of the process. In the assessment examples, differing operational profitability are shown for the largely differing energy market operation conditions. Also, sensitivities to CO2-allowance price and selling "green" synthetic natural gas (SNG) to the mobility sector are shown.

AB - This paper presents a techno-economic optimization study of the operation of a Power-to-Gas (PtG) process. PtG is one option for long-term energy storage in solar and wind dominated energy systems, but provides also short term dynamic opportunities that could be utilized in existing power markets to enhance PtG profitability. The scheduling feasibility and profitability is dependent on PtG process characteristics as well as the dynamic markets for wholesale power, regulating power, gases and heat. Market characteristics, such as power bid structures and timings, differ clearly for different market types, areas and countries, as well as local grid conditions and dynamic demands on produced gases and waste heat. We show shortly the differing market situations in some representative EU countries. Completely deregulated wholesale and control power markets reflect the power balance situation for several time horizons and real need for additional balancing capacity. In this market environment, the schedule when to provide regulating power, operate in primary frequency control and when to only schedule pure gas production could be determined beforehand from cost-efficient bidding in each market. Other market models result in different PtG operation and balancing power availability. We assess a sample of representative 24 hour periods in two countries with very differing wholesale and control power markets characteristics. In the assessment, the operation optimization is applied on a future example PtG process consisting of commercially available large alkaline electrolysers, H2- and O2- compression and storages, O2 consumer like pulp industry, and methanation with feed into the gas grid. Operation schedule dynamics are validated with a detailed dynamic process simulation model of the process. In the assessment examples, differing operational profitability are shown for the largely differing energy market operation conditions. Also, sensitivities to CO2-allowance price and selling "green" synthetic natural gas (SNG) to the mobility sector are shown.

UR - https://eurosolar.de/en/index.php/order-form?view=form

M3 - Conference article in proceedings

BT - Conference Proceedings of the 10th International Renewable Energy Storage Conference (IRES 2016)

PB - EUROSOLAR The European Association for Renewable Energy

ER -

Weiss R, Savolainen J, Peltoniemi P, Inkeri E. Optimal scheduling of a P2G plant in dynamic Power Heat and Gas markets. In Conference Proceedings of the 10th International Renewable Energy Storage Conference (IRES 2016). EUROSOLAR The European Association for Renewable Energy. 2016