Multi-timescale Trading Strategy for Renewable Power to Ammonia Virtual Power Plant in the Electricity, Hydrogen, and Ammonia Markets

TL;DR

This paper proposes a multi-timescale trading strategy for renewable power to ammonia virtual power plants, optimizing cross-market operations in electricity, hydrogen, and ammonia markets to reduce costs and enhance flexibility.

Contribution

It introduces a unified framework for trading electricity, ammonia, and hydrogen, utilizing buffer systems and a robust optimization model for multi-market coordination.

Findings

RePtA VPP joining multiple markets offers economic benefits.

Hydrogen and ammonia buffers increase operational flexibility.

The proposed strategy outperforms conventional approaches in case studies.

Abstract

Renewable power to ammonia (RePtA) is a prominent zero-carbon pathway for decarbonization. Due to the imbalance between renewables and production energy demand, the RePtA system relies on the electricity exchange with the power grid. Participating in the electricity market as a virtual power plant (VPP) may help to reduce energy costs. However, the power profile of local photovoltaics and wind turbines is similar to those in the market, resulting in rising energy costs under the conventional strategy. Hence, we develop a multi-timescale trading strategy for the RePtA VPP in the electricity, hydrogen, and ammonia markets. By utilizing the hydrogen and ammonia buffer systems, the RePtA VPP can optimally coordinate production planning. Moreover, we find it possible to describe the trading of electricity, ammonia, and hydrogen in a unified framework. The two-stage robust optimization model of the electricity market is extended to multiple markets and solved by the column and constraint generation (CC\&G) algorithm. The case is derived from an actual project in the Inner Mongolia Autonomous Region. Sensitivity analysis demonstrates the economic advantages of an RePtA VPP joining multiple markets over conventional strategy and reveals the necessity of the hydrogen and ammonia buffer and reactor's flexibility.