Bidding strategies for excess heat producers participating in a local wholesale heat market

In order to enable excess heat producers to supply their heat to district heating, third-party access needs to be granted, which calls for a deregulated heat market.

This work consists of analysing two different bidding strategies which can be applied on the heat market: total cost and marginal cost biding. The focus here is to research the feasibility of the excess heat sources when different bidding strategies are used, especially when low-temperature excess heat is considered, which has variable hourly costs due to the electricity demand for operating a heat pump. Finally, the significant effect of the power market prices on the low-temperature excess heat feasibility led to the conclusion that introducing a higher share of renewables into the power market could foster the utilisation of these heat sources.

Authors: B. Doračić (University of Zagreb), M. Pavičević (KU Leuven), T. Pukšec, N. Duić (University of Zagreb)