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Value-Creation Potential from Multi-Market Trading for a Hydropower Producer

Value-Creation Potential from Multi-Market Trading for a Hydropower Producer

Category
Journal publication
Abstract
We study a hydropower producer’s potential for value-creation from multi-market trading given the price variations in the markets and the flexibility provided through access to hydro reservoirs. We use a perfect foresight optimization model for a price-taking hydropower producer co-optimizing his trades in the day-ahead, intra-day and balancing markets. The model is used on real market data from Norway, Sweden and Germany. The study shows a theoretical potential for added value when selling energy in multiple markets relative to optimal day-ahead sale. Most of this value is achievable also when the perfect foresight is limited to the period from day-ahead bidding until operation. Flexible production plants achieve the largest relative added values for multi-market sales, and has the largest benefit from a long horizon with perfect foresight.
Client
  • Norges forskningsråd / 243964
Language
English
Author(s)
Affiliation
  • SINTEF Energy Research / Energisystemer
  • SINTEF Industry / Sustainable Energy Technology
Year
2018
Published in
Energies
ISSN
1996-1073
Volume
11
Issue
1