Extending Energy Flexibility for Demand Response Hybrid Utility Systems in the food Industry

Electrification, particularly in highly renewable grids, is not seen as viable by industry due to price volatility, but this can be addressed through demand response. However, biochemical industries such as food cannot easily manipulate their production operations to engage in demand response. Hybrid biomass-electric systems allow for engaging in demand response, while providing uninterrupted heat supply. In grids with high percentage of renewables, there can be frequent periods of low price and also high price volatility. Technologies can be implemented in utility systems to take advantage of this and provide mitigation against high prices. This work examined the cost-effectiveness of battery storage, heat pumps and PV arrays being integrated into hybrid system being applied to the food industry in New Zealand. Simulations were used to explore different system designs and operating strategies, determining the most economical options to extend the hybrid utility system. Heat pumps were found to be the most cost-effective, reducing costs by up to 3.2 %, with batteries not being economical due to poor performance relative to cost. Operating strategies across both heat pumps and batteries were found to have negligible impacts, with capacity sizing appearing far more significant of a choice. PV arrays proved to be most impactful during periods of high prices, with fuel cost reductions of up to 0.7 %, and thus should be paired with heat pumps for a holistic solution.