Optimal Scheduling for District Energy Providers in the Context of Real-Time Market and Negative SMP Under a Two-Settlement System

In response to the climate crisis, the expansion of renewable energy has accelerated. However, due to the intermittency and uncertainty of these resources, it has become difficult to maintain real-time supply-demand balance solely based on the generation plans from the day-ahead market. As a result, real-time market implementation is being introduced. Additionally, the grid's stability is declining under these conditions, and the importance of flexible resources is increasing. In this context, district energy providers, who operate combined heat and power(CHP) plants capable of offering flexibility, play a crucial role. However, district energy providers face challenges in formulating their strategies in the day-ahead and real-time markets due to their obligation to supply heat, making it more complex compared to other GENCOs. Therefore, this paper focuses on the bidding strategies of district energy providers in this evolving market environment.