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Additional revenues with electric steam boilers: introduction to implicit and explicit electric flexibility

Published on 1 de April de 2024 by Jesús Longas

Introduction to electrical flexibility mechanisms How to participate in the flex markets? Regarding implicit flexibility, all consumers can participate in the electricity market and implement flexibility in their production process. In the case of explicit flexibility, power generation plants usually participate actively in the grid adjustment markets; however, with the transition to renewable energies, it […]

Additional revenues with electric steam boilers: introduction to implicit and explicit electric flexibility microgrid. Giconmes industrial steam generators
Additional revenues with electric steam boilers: introduction to implicit and explicit electric flexibility microgrid. Giconmes industrial steam generators

Introduction to electrical flexibility mechanisms

  1. Implicit Flexibility: Consists of adjusting consumption in accordance with electricity market prices. For this purpose, consumers participate directly or through a representative in the main market for the purchase and sale of electricity in real time or in advance. In this market, prices fluctuate according to supply and demand at each time interval, and companies can earn income by selling electricity at times of high demand and high prices. It is also possible to optimize costs by decreasing consumption at times when electricity prices are high, and increasing it when prices are low.
  2. Explicit Flexibility: Grid adjustment services are responsible for balancing the instantaneous supply and demand of electric power, this service has a price that is set in an open market. Consumers can help maintain the stability of the electricity system by participating in the “adjustment markets” by modulating their consumption (reduction/increase) in response to a signal from the system operator (REE).

How to participate in the flex markets?

Regarding implicit flexibility, all consumers can participate in the electricity market and implement flexibility in their production process.

In the case of explicit flexibility, power generation plants usually participate actively in the grid adjustment markets; however, with the transition to renewable energies, it is necessary that demand also participates in order to guarantee the correct operation of the transmission grid. Thus, any company with an electrical installation of at least 1MW can participate in the grid adjustment mechanisms.

Our partner https://www.energy-pool.eu/es/software-platform-2/ is in charge of installing the necessary software to be able to have integration capabilities and fulfill one of the requirements to participate in the network adjustment markets.

Additional revenues with electric steam boilers: introduction to implicit and explicit electric flexibility energy pool 1. Giconmes industrial steam generators

How can I generate income with my electric steam boiler by participating in the flexibility mechanisms?

a. Participation in demand response programs: Electric steam boilers can be integrated into demand response programs, where participants are incentivized to reduce or shift their energy consumption at times of high demand or supply shortages. Marketers can coordinate the participation of multiple steam boilers to provide an efficient and cost-effective response to the electricity market.

b. Reserve capacity offer: Electric steam boilers can provide standby capacity to the electrical system, which means keeping an amount of power available for immediate use in case of a contingency or sudden need for additional power. Marketers can manage this reserve capacity and receive compensation for keeping it available.

c. Optimization of energy use: Energy management systems can optimize the use of electric steam boilers by intelligently scheduling their operation. This involves taking advantage of times of low electricity prices to generate steam and store it, and then use or sell it at times of higher prices. This strategy can maximize revenues while reducing operating costs.

d. Participation in markets for network adjustment services: In addition to demand response and reserve capacity, electric steam boilers can engage in adjustment mechanisms to regulate frequency by means of their fast start-up. Intelligent energy management systems can coordinate participation in these markets to diversify revenue streams and maximize profitability.

How much revenue can a 1MW electric steam boiler participating in one of the above programs generate?

The revenue that can be generated by a 1 MW electric steam boiler participating in demand response programs can vary. These revenues can come from capacity payments, incentives for consumption reduction at critical times and other compensation mechanisms established by the market and regulators. In countries such as France where demand flexibility and capacity programs are already in place, a 1MW electric boiler can generate revenues between €40,000 and €90,000 per year.

Additional revenues with electric steam boilers: introduction to implicit and explicit electric flexibility energy pool 2. Giconmes industrial steam generators

How can Giconmes help with the monetization of your company’s steam boiler?

  1. Giconmes designs, manufactures and markets electric steam boilers up to 10,000kg/hour (5.5MW). First consider replacing any gas boiler with an electric boiler. This is Giconmes’ raison d’être
  2. In collaboration with EnergyPool, a company dedicated to providing electricity demand management solutions, we can integrate your electric steam boiler into the Spanish energy system so that you can benefit from the above.