Using demand side management and CHP in renewable dominated decentral energy systems: a case study

Germany targets to increase the electricity generation from renewable energy sources and combined heat and power plants. The selected targets increase the total cost of electricity carried by consumers as well as increases the share of decentralized energy generation. To achieve higher cost effectiveness as well as increasing the decentralized share of renewable energy, pressure is put on decentralized energy system operation management and expansion planning. This work studies a decentralized expansion planning with a special focus in generating flexibility options in a decentralized region with a high share of renewable energy generation. The analysis is conducted with a scenario-based optimization modeling approach. The results show that flexibility options can reduce the cost of the system. However, the side effect of a decentralized market-oriented operation can lead to a difficulty of grid control. The region should set a long term expansion plan with the consideration of flexibility options, generation technologies as well as ICT infrastructure.