Flexibility Service for Balance Responsible Parties’ Industrial Customers: A Day-Ahead Cost Optimization Approach Using Price Forecasting

Electricity-intensive industries are highly impacted by electricity prices and their fluctuations. While these industries can change their consumption profiles to avoid peak price periods, they must also adhere to production schedules dictated by their unique manufacturing processes and related cons...

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Main Authors: Adriano Caprara, Sara Barja-Martinez, Monica Aragues-Penalba, Eduard Bullich-Massague
Format: Article
Language:English
Published: IEEE 2025-01-01
Series:IEEE Access
Subjects:
Online Access:https://ieeexplore.ieee.org/document/10990257/
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author Adriano Caprara
Sara Barja-Martinez
Monica Aragues-Penalba
Eduard Bullich-Massague
author_facet Adriano Caprara
Sara Barja-Martinez
Monica Aragues-Penalba
Eduard Bullich-Massague
author_sort Adriano Caprara
collection DOAJ
description Electricity-intensive industries are highly impacted by electricity prices and their fluctuations. While these industries can change their consumption profiles to avoid peak price periods, they must also adhere to production schedules dictated by their unique manufacturing processes and related constraints. Balance Responsible Parties (BRPs), seek to optimize the electricity costs of their portfolio of customers and have limited access to real-time industrial flexibility. So, the concept of Daily Industrial Flexibility (DIF) is introduced as a trade-off between real-time flexibility and predetermined industrial schedules. Each factory can propose different fixed day-ahead consumption profiles to the BRP, each with a specific activation cost. In this context, this paper proposes a day-ahead flexibility service to minimize the BRP’s costs of electricity purchase on the day-ahead market, activating DIFs within the portfolio of industrial customers. A forecasting model for the electricity price is implemented and an optimization model is formulated to minimize day-ahead portfolio costs. Finally, the case study of a Catalan BRP is presented, considering DIF offers from its largest customers. Results demonstrate that the proposed approach enables accurate predictions of the BRP’s customers operation before DAM closure, successfully identifying alternative schedules to reduce portfolio costs.
format Article
id doaj-art-cf7563f152e640c0b5c2704d0bed8636
institution OA Journals
issn 2169-3536
language English
publishDate 2025-01-01
publisher IEEE
record_format Article
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spelling doaj-art-cf7563f152e640c0b5c2704d0bed86362025-08-20T01:49:15ZengIEEEIEEE Access2169-35362025-01-0113811888120310.1109/ACCESS.2025.356787910990257Flexibility Service for Balance Responsible Parties’ Industrial Customers: A Day-Ahead Cost Optimization Approach Using Price ForecastingAdriano Caprara0https://orcid.org/0009-0001-9557-5522Sara Barja-Martinez1https://orcid.org/0000-0003-4126-8858Monica Aragues-Penalba2https://orcid.org/0000-0002-1509-376XEduard Bullich-Massague3https://orcid.org/0000-0003-4603-1868Centre d’Innovació Tecnológica en Convertidors Estatics i Accionaments (CITCEA), ETS d’Enginyeria Industrial de Barcelona, Universitat Politècnica de Catalunya (UPC), Barcelona, SpainCentre d’Innovació Tecnológica en Convertidors Estatics i Accionaments (CITCEA), ETS d’Enginyeria Industrial de Barcelona, Universitat Politècnica de Catalunya (UPC), Barcelona, SpainCentre d’Innovació Tecnológica en Convertidors Estatics i Accionaments (CITCEA), ETS d’Enginyeria Industrial de Barcelona, Universitat Politècnica de Catalunya (UPC), Barcelona, SpainCentre d’Innovació Tecnológica en Convertidors Estatics i Accionaments (CITCEA), ETS d’Enginyeria Industrial de Barcelona, Universitat Politècnica de Catalunya (UPC), Barcelona, SpainElectricity-intensive industries are highly impacted by electricity prices and their fluctuations. While these industries can change their consumption profiles to avoid peak price periods, they must also adhere to production schedules dictated by their unique manufacturing processes and related constraints. Balance Responsible Parties (BRPs), seek to optimize the electricity costs of their portfolio of customers and have limited access to real-time industrial flexibility. So, the concept of Daily Industrial Flexibility (DIF) is introduced as a trade-off between real-time flexibility and predetermined industrial schedules. Each factory can propose different fixed day-ahead consumption profiles to the BRP, each with a specific activation cost. In this context, this paper proposes a day-ahead flexibility service to minimize the BRP’s costs of electricity purchase on the day-ahead market, activating DIFs within the portfolio of industrial customers. A forecasting model for the electricity price is implemented and an optimization model is formulated to minimize day-ahead portfolio costs. Finally, the case study of a Catalan BRP is presented, considering DIF offers from its largest customers. Results demonstrate that the proposed approach enables accurate predictions of the BRP’s customers operation before DAM closure, successfully identifying alternative schedules to reduce portfolio costs.https://ieeexplore.ieee.org/document/10990257/Balance responsible partyday-ahead marketday-ahead optimizationdemand responseelectricity marketselectricity price forecasting
spellingShingle Adriano Caprara
Sara Barja-Martinez
Monica Aragues-Penalba
Eduard Bullich-Massague
Flexibility Service for Balance Responsible Parties’ Industrial Customers: A Day-Ahead Cost Optimization Approach Using Price Forecasting
IEEE Access
Balance responsible party
day-ahead market
day-ahead optimization
demand response
electricity markets
electricity price forecasting
title Flexibility Service for Balance Responsible Parties’ Industrial Customers: A Day-Ahead Cost Optimization Approach Using Price Forecasting
title_full Flexibility Service for Balance Responsible Parties’ Industrial Customers: A Day-Ahead Cost Optimization Approach Using Price Forecasting
title_fullStr Flexibility Service for Balance Responsible Parties’ Industrial Customers: A Day-Ahead Cost Optimization Approach Using Price Forecasting
title_full_unstemmed Flexibility Service for Balance Responsible Parties’ Industrial Customers: A Day-Ahead Cost Optimization Approach Using Price Forecasting
title_short Flexibility Service for Balance Responsible Parties’ Industrial Customers: A Day-Ahead Cost Optimization Approach Using Price Forecasting
title_sort flexibility service for balance responsible parties x2019 industrial customers a day ahead cost optimization approach using price forecasting
topic Balance responsible party
day-ahead market
day-ahead optimization
demand response
electricity markets
electricity price forecasting
url https://ieeexplore.ieee.org/document/10990257/
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AT monicaaraguespenalba flexibilityserviceforbalanceresponsiblepartiesx2019industrialcustomersadayaheadcostoptimizationapproachusingpriceforecasting
AT eduardbullichmassague flexibilityserviceforbalanceresponsiblepartiesx2019industrialcustomersadayaheadcostoptimizationapproachusingpriceforecasting