Optimal operation and analysis of a district heating supplier's portfolio: the Swedish case

This paper develops a mixed integer linear program (MILP) for optimal operation modelling and analysis of a district heating supplier’s portfolio. The model aims to meet the heat demand with the lowest possible dispatch cost, while maximizing the profit from electricity trading in competitive day-ahead (DA) and manual frequency restorations reserves (mFRR) regulation markets. The proposed price driven MILP model is applied on a real system of a Swedish district heating (DH) company, namely Tekniska verken i Link¨oping AB (TvAB), to analyse the operation of TvAB’s portfolio and the resulting participation in DA and mFRR markets. It is seen that an optimal operation of the portfolio while trading in the DA market alone results in a profit of about 156 MSEK, while also considering participation in mFRR markets in addition to DA increases the profit by another 2.75 MSEK.