Optimization of the Electricity Market Participation by a Waste Incineration CHP Plant with a Battery Energy Storage System

Abstract:
Since waste incineration is the main purpose of waste-to-energy cogeneration plants, their electricity output is dictated by the amount of incinerated waste, and does not react on electricity market prices. A more flexible operation would be beneficial for the further integration of high shares of intermittent renewable energy sources and could at the same time increase the profits from power sales for the plant operator. In this work, the combination of a battery energy storage system (BESS) with a waste incineration plant for participation in day-ahead and intraday market trading is studied using rolling horizon optimization. The flexibility for the trading is provided by the BESS, so that the primary focus of the plant on waste incineration is unaffected. It is found that the interaction of day-ahead and intraday market trading provides opportunities for the BESS operation and that under 2019 EPEX SPOT market conditions, an unsubsidized investment in a BESS is unprofitable. In addition, we discuss sensitivities with respect to different assumptions made.