• Energy Research

This article provides an agent-based model of a hypothetical standalone electricity network to identify how the feed-in tariffs and the installed capacity of wind power, calculated in percentage of total system demand, affect the electricity consumption from renewables. It includes the mechanism of electricity pricing on the Day Ahead Market (DAM) and the Imbalance Market (IM). The extra production volumes of Electricity from Renewable Energy Sources (RES-E) and the flexibility of electrical consumption of industries is provided as reserves on the IM. Five thousand simulations were run by using the agent-based model to gather data that were then fit in linear regression models. This helped to quantify the effect of feed-in tariffs and installed capacity of wind power on the consumption from renewable energy and market prices. The consumption from renewable sources, expressed as percentage of total system consumption, increased by 8.17% for every 10% increase in installed capacity of wind power. The sharpest increase in renewable energy consumption is observed when a feed-in tariff of 0.04 €/kWh is provided to the wind farm owners, resulting in an average increase of 9.1% and 5.1% in the consumption from renewable sources while the maximum installed capacity of wind power is 35% and 100%, respectively. The regression model for the annualized DAM prices showed an increase by 0.01 €cents/kWh in the DAM prices for every 10% increase in the installed wind power capacity. With every increase of 0.01 €/kWh in the value of feed-in tariffs, the mean DAM price is lowered as compared to the previous value of the feed-in tariff. DAM prices only decrease with increasing installed wind capacity when a feed-in tariff of 0.04 €/kWh is provided. This is observed because all wind power being traded on DAM at a very cheap price. Hence, no volume of electricity is being stored for availability on IM. The regression models for predicting IM prices show that, with every 10% increase in installed capacity of wind power, the annualized IM price decreases by 0.031 and 0.34 €cents/kWh, when installed capacity of wind power is between 0 and 25%, and between 25 and 100%, respectively. The models also showed that, until the maximum installed capacity of wind power is less than 25%, the IM prices increase when the value of feed-in tariff is 0.01 and 0.04 €/kWh, but decrease for a feed-in tariff of 0.02 and 0.03 €/kWh. When installed capacity of wind power is between 25 and 100%, increasing feed-in tariffs to the value of 0.03 €/kWh result in lowering the mean IM price. However, at 0.04 €/kWh, the mean IM price is higher, showing the effect of no storage reserves being available on IM and more expensive reserves being engaged on the IM. The study concludes that the effect of increasing installed capacity of wind power is more significant on increasing consumption of renewable energy and decreasing the DAM and IM prices than the effect of feed-in tariffs. However, the effect of increasing values of both factors on the profit of RES-E producers with storage facilities is not positive, pointing to the need for customized rules and incentives to encourage their market participation and investment in storage facilities.

Similar to many other Western countries, Belgium has committed to internationally set climate goals, such as the reduction in primary energy consumption and the increase in the share of renewable energy production in the total energy mix. Additionally, Belgium has decided to phase out its nuclear energy production, the nation’s largest source of low carbon electricity. In this paper, the role of Belgian business parks and industrial clusters in contributing to the climate goals is investigated, based on the experiences of the authors on several business parks and industrial clusters. The concepts of cogeneration, advanced thermal grids, and local energy communities are discussed and applied on pilot clusters. Their effectiveness towards achieving the climate goals is evaluated, and finally, some policy recommendations are proposed. The results are based on the Belgian situation but are valid for other countries facing similar challenges.

The shift from fossil fuel to more renewable electricity generation will require the broader implementation of Demand Side Response (DSR) into the grid. Utility processes in industry are suited for this, having a large thermal time constant or buffer, and large electricity consumption. A widespread utility system in industry is an induced draft evaporative cooling tower. Considering the safety aspect, such a process needs to maintain cooling water temperature within predefined safe boundaries. Therefore, in this paper, two modelling methods for the prediction of the basin temperature of an induced draft evaporative cooling tower are proposed. Both a white box and a black box methodology are presented, based on the physical principles of fluid dynamics and adaptive neuro-fuzzy interference system (ANFIS) modelling, respectively. By analysing the accuracy of both models with a focus to cooling tower fan state changes, i.e., DSR purposes, it is shown that the white box model performs best. Fostering the idea of using such a system for DSR purposes, the concept of design for flexibility is also touched upon, discussing the thermal mass. Pre-cooling, where the temperature of the cooling water basin is lowered before a fan switch off period, was simulated with the white box model. It was shown that beneficial pre-cooling (to lower the temperature peak) is limited in time.

The increased penetration of renewable energy sources in the electrical grid raises the need for more power system flexibility. One of the high potential groups to provide such flexibility is the industry. Incentives to do so are provided by variable pricing and remuneration of supplied ancillary services. The operational flexibility of a chlor-alkali electrolysis process shows opportunities in the current energy and ancillary services markets. A co-optimisation of operating the chlor-alkali process under an hourly variable priced electricity sourcing strategy and the delivery of Frequency Containment Reserve (FCR) is the core of this work. A short term price prediction for the Day-Ahead Market (DAM) and FCR market as input for a deterministic optimisation shows good results under standard DAM price patterns, but leaves room for improvement in case of price fluctuations, e.g., as caused by Renewable Energy Sources (RES). A two-stage stochastic optimisation is considered to cope with the uncertainties introduced by the exogenous parameters. An improvement of the stochastic solution over the deterministic Expected Value (EV) solution is shown.