Enhancing operation of decentralized energy systems by a regional economic optimization Model DISTRICT

In this paper, a regional energy system model is introduced. The model targets the cost minimal operation of a regional energy system with the possibility of trading electricity at a spot and reserve market outside of the system borders. The system boundaries are set to be around the regional energy system, with one connection point to the rest of the system and hence the possibility to trade across the system border. Within the system boundaries, the system is divided into model areas where demand and generation are located, using a transport model approach to account for grid restrictions between the model areas. In addition to generation technologies, the model allows for demand side management and storage usage. For the trade at central markets, spot and reserve markets are integrated, using a price-taker approach. The paper shows the mathematical formulation in detail. To test the formulation and methodology of the model presented here, a case study based on real data is conducted. The case study highlights the fact that the model accounts for operational interconnections of technologies at distribution grid level. It also enables looking at effects on the grid and indicates where a more detailed power flow analysis might be required. If the proclaimed flexible energy systems come to reality, the model enables stakeholders to improve their knowledge of their distributed system, the effects of small-scale technologies and the interplay with the central system. Hence, the application demonstrates that the model adds value to closing the knowledge gap between stakeholders' concerns about efficient operation planning of their system at distribution grid level.