A Cost Analysis of Integrating Industrial Assets in the Redispatch Process in Austria

The project Industry4Redispatch (I4RD) explores the integration of industrial assets into the redispatch (RD) process in Austria. Emphasizing process and market mechanism specification interaction between transmission and distribution grid system operators, as well as industry optimization, one part of the project focuses on the cost-benefit analysis for different stakeholders. To evaluate the benefits for different stakeholders by industrial participation in the redispatch process, possible ways of providing industrial flexibility and correlated costs must be determined first. From an industrial perspective, the costs associated with a flexibility bid encompass the difference between conventional energy consumption expenses in a base scenario and those incurred in a scenario that accommodates the specific flexibility bid. The paper outlines a method for estimating the costs of industrial bids as a basis for future analyses.