Demand response scheduling of copper production under short-term electricity price uncertainty

Marketing demand response of industrial processes on electricity spot markets can reduce operational cost. We apply our simultaneous day-ahead and intraday electricity market participation approach (Germscheid et al., AIChE J. 2022;68:e17828) to analyze the demand response potential of power-intensi...

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Bibliographic Details
Published in:Computers & chemical engineering 2023-10, Vol.178, p.108394, Article 108394
Main Authors: Germscheid, Sonja H.M., Röben, Fritz T.C., Sun, Han, Bardow, André, Mitsos, Alexander, Dahmen, Manuel
Format: Article
Language:English
Subjects:
Copper production
Price uncertainty
Resource–task network
Scheduling optimization
Stochastic programming
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Summary:Marketing demand response of industrial processes on electricity spot markets can reduce operational cost. We apply our simultaneous day-ahead and intraday electricity market participation approach (Germscheid et al., AIChE J. 2022;68:e17828) to analyze the demand response potential of power-intensive copper production with our previously derived resource–task network model (Röben et al., J. CLEAN. PROD. 2022;362:132221). Specifically, we tackle intraday price uncertainty by stochastic scheduling optimization considering both risk-neutral and risk-averse market participation. Risk-averse participation allows for 1.9% weekly savings compared to only participating on the day-ahead market. Risk-neutral participation allows for 6.4% savings, but is connected to higher financial risks on weekends. Moreover, we show that load-shifting capabilities significantly depend on modeling on/off decisions either as first or second-stage integer decisions and that sequential day-ahead and intraday scheduling allows to participate in both markets while balancing financial risk, expected cost, and computational complexity compared to stochastic scheduling. •Risk-neutral and -averse stochastic scheduling tackle intraday price uncertainty.•Risk-neutral and risk-averse approach reduce cost by 6.5% and 1.9%, respectively.•Risk-neutral approach leads to large financial risk on weekends.•Sequential scheduling avoids computational expense of risk-averse approach.•Modeling integers as 1st or 2nd stage decisions impacts load-shifting capabilities.
ISSN:0098-1354
1873-4375
DOI:10.1016/j.compchemeng.2023.108394