Optimized Bidding Strategies for Industrial Steam Networks in Multiple Energy and Reserve Markets

To increase the flexibility available from the industrial sector, this paper proposes an optimization model to valorize the flexibility from a steam network in a multi-market (gas, day-ahead electricity, balancing capacity and balancing energy). The model determines the optimal bidding behavior of the industrial process considering all markets constraints and the steam network operational limits. We run the model using 2023 real prices from the Belgian electricity and balancing markets, and steam demand profiles from a Belgian chemical industry. Results showcase that the strategic decision between the position in the day-ahead market (as a consumer or as a generator) and later provision of flexibility (upward or downward) should take into account the expected relation between the day-ahead, capacity and energy markets prices, which is established by the unit revenue parameter that we propose.