Investment incentives for flexible energy consumption in the industry

Ambrosius M, Grimm V, Sölch C, Zöttl G (2016)


Publication Language: English

Publication Type: Conference contribution, Conference Contribution

Publication year: 2016

Pages Range: 1-5

Conference Proceedings Title: 2016 13th International Conference on the European Energy Market (EEM)

Event location: Porto PT

DOI: 10.1109/EEM.2016.7521234

Abstract

The paper at hand analyses investment incentives for flexible manufacturing facilities within the energy market system. We propose a multi-stage equilibrium model which incorporates generation capacity investment, network expansion and redispatch, and include extensions regarding a flexible production approach. The model allows to investigate incentives for flexible production as well as locational choices and the impact of flexible energy demand on the energy market as a whole. In particular, we explore the profitability of flexible production units for different shares of flexible energy consumers in the electricity market. Furthermore, we examine from which point on flexible production units will have a considerable influence on energy price development and the extent to which price fluctuations will be mitigated by flexible consumption. First computational results on a test network reveal that flexible production units might be very profitable and even have a positive impact on welfare, additionally to energy cost savings of the flexible consumers. However, a large scale flexibilization of energy demand has a smoothing impact on the energy price curve and therefore reduces profits for flexible production approaches.

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APA:

Ambrosius, M., Grimm, V., Sölch, C., & Zöttl, G. (2016). Investment incentives for flexible energy consumption in the industry. In IEEE (Eds.), 2016 13th International Conference on the European Energy Market (EEM) (pp. 1-5). Porto, PT.

MLA:

Ambrosius, Mirjam, et al. "Investment incentives for flexible energy consumption in the industry." Proceedings of the 13th International Conference on the European Energy Market (EEM), Porto Ed. IEEE, 2016. 1-5.

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