Sizing of hybrid power plant for maximizing values from electricity markets

Abstract

In the transition towards a lowcarbon energy system, literature has found Hybrid Power Plants to be a key potential player, given the benefits they can bring in combining renewable energy resources with or without battery energy storage systems. This project aims at solving the sizing problem of a hybrid power plant (HPP) with an objective to maximize its profitability when participating in various energy markets, within the framework of the Nordic electricity markets. The HPP sizing tool HyDesign, developed by DTU Wind, is reviewed, extended and applied to fit this objective. An Energy Management System is modelled to provide optimal operational strategies for plant assets with the objective to maximize revenues. This operational strategies are evaluated under a case study and the impact of relevant design parameters as well as market price volatility on the plant’s revenues is assessed through a sensitivity analysis. The new extended model is integrated into the HyDesign sizing tool and used to determine an optimal HPP configuration to maximize plant profitability. Results are again subject to a sensitivity analysis on relevant design variables, component costs and market prices. Results indicate a significant potential for increased plant profitability when participating in balancing markets. In the context of sizing a HPP power plant, profitability in configurations with participation in these additional electricity markets displays more robustness to variation in component sizing and market price volatility.