Dynamic Stacking of Energy & Power Portfolios on the Dutch Market

Abstract

The thesis is written with Spectral, an Amsterdam-based Energy Consultancy who manage assets for several clients with flexibility to trade electricity products due to portfolios of energy storage and renewable energy systems (ESS & VRES) at commercial sites such as business parks. The cost of investment for these assets is high, meanwhile, grid connections are limited and therefore self-sufficiency is becoming increasingly necessary. As such, there is growing interest in ways to ensure these assets profitability can be maximised. Recent literature suggests that trading dynamically across multiple markets could increase profits. The aim of the thesis is therefore to build a model whereby any client portfolio of assets can be modelled with accompanying production and load data to find optimal trading strategies across various markets. Spectral has experience trading on the day-ahead and FCR markets, so these will be used as the model starting point, while also considering imbalance settlement payments. The research finds that trading on DA with FCR is the most profitable, with FCR being the primary revenue stream. Furthermore, parameters such as curtailment of VRES, grid import and export limits and battery cycling can also be analysed and provide useful information for further economic analyses such as development of the business case for grid connection up- or down-grades. Further research will include integration of future markets into the model, namely the intra-day, as well as reformulation of the imbalance settlement modelling to include this in part of the optimisation.