Demand response scheduling of copper production under short-term electricity price uncertainty

Abstract

Marketing demand response of industrial processes on electricity spot markets can reduce operational cost. We apply our simultaneous day-ahead and intraday electricity market participation approach (Germscheid et al., AIChE J. 2022;68:e17828) to analyze the demand response potential of power-intensive copper production with our previously derived resource–task network model (Röben et al., J. CLEAN. PROD. 2022;362:132221). Specifically, we tackle intraday price uncertainty by stochastic scheduling optimization considering both risk-neutral and risk-averse market participation. Risk-averse participation allows for 1.9% weekly savings compared to only participating on the day-ahead market. Risk-neutral participation allows for 6.4% savings, but is connected to higher financial risks on weekends. Moreover, we show that load-shifting capabilities significantly depend on modeling on/off decisions either as first or second-stage integer decisions and that sequential day-ahead and intraday scheduling allows to participate in both markets while balancing financial risk, expected cost, and computational complexity compared to stochastic scheduling.