Industrial Demand Response in the Primary Reserve Markets : A case study on Holmen’s Pulp and Paper Mill

Sammanfattning: This thesis stems from the interest of Holmen group to investigate the opportunitiesavailable for large electricity consumers in the Swedish primary reserve markets.The study performed focuses on one of Holmen's paper mill and it aims at identifyinga load inside the production process that is suitable for providing frequency containmentservices for the grid. The evaluation of the mill's consumption prole and the technicalrequirements of the reserve market led to the identication of the electric boiler coupledwith a steam accumulator as the most appropriate load.Five case study simulating the participation of the mill to dierent energy and reservemarkets have been evaluated. For each case a linear optimization problem has beenformulated. The rst simulation represents the current practice of the mill in relation tothe energy purchased on the spot market (following it will be also referred as referencecase). The second case study (II c.s.) integrates the use of the steam accumulator asa tool to perform thermal load shifting. In the third case study (III c.s.) the mill ismodelled to bid on the spot and primary reserve market by oering some capacity ofthe electric boiler. The last two case studies (IV and V c.s.) recalls the rst and lastpreviously mentioned, but also include the possibility of having energy imbalance. Thismeans that the imbalance settlement operated by eSett will produce an additional costor prot for the mill.The last three problem formulations fall under the denition of stochastic problems,since two random variable are present, namely: average hourly frequency value andimbalance settlement price. The uncertainty of the variables is represented throughscenarios.The outcome derived from the combination of the results for the winter and summercases shows that each strategy brings an economic saving when compared to the referencecase (I c.s.). The less interesting strategies are the ones that do not involve the reservemarket, leading to about 0.03% (II c.s.) and 0.06% (IV c.s.) of saving on the overallyearly energy cost. Contrariwise, by oering FCR-N capacity, the cost of electricitycan be cut by 5.15% (III c.s.) and 6.69% (V c.s.), respectively considering and notconsidering the imbalance settlement.