Business model based on bidding strategy for the Wind Power Plant and District Heating System portfolio considering ancillary services

This paper proposes a business model based on bidding strategy for the wind power plant and district heating system (WPP-DHS) portfolio considering ancillary service of frequency regulation. Taking advantage of the flexibility of DHS, the combined entity of WPP and DHS can provide both energy and ancillary service. Since short-term reserves are significant to provide the security of the power system, they have a significant price tag. Tapping into that potential by providing short-term reserves to the IEHS can be an excellent business case for the WPP-DHS portfolio, especially because the flexibility of the HPs in the district heating system can be utilized to provide frequency regulation. Case studies verify the efficiency of the proposed models and methods.