Energy- Economic Optimization of Energy Production Processes and for Industrial Use

Energy- Economic Optimization of Energy

Production Processes and for

Industrial Use

The digital twin

Quiénes somos

>

40 años de experiencia

en ingeniería

>

120

colaboradores y

>

12

nacionalidades

>

150

clientes

>

100

casos de éxito

>

Unico

socio de

implementación de

ProCom en América

>

19 años de

experiencia

> Clientes en

8

países

de la región

> Oficinas en

4

países

Usage of ProCom’s solutions by

four of the five largest German

cities –

Hamburg, Munich,

Berlin, Frankfurt am Main

15 %

increase in

earnings

by our customers

through the coupled use of

optimization and short-term

trading

7

million people

benefit

from the effective and

ecological management

provided by ProCom solutions

Daily planning, optimization

and trading of more than

60

GW

of power and

heat generation

IT-Solutions and Consulting for the whole value chain

Generation Storage Trading missionTrans- Sales Demand

MIS

BoFiT Optimization ITA

BoFiT Forecast

ProCom Energy Consulting

ProCo

m Data

Hu

b

ProCom Da

ta

Hub

Agenda

• Introduction

• Techno- Economic Optimization

Challenges of Energy Utilities

BoFiT: Techno-economical optimization model

Key Concept of BoFiT – graphically designed with predefinded components

Fuel storage Target function: Maximize profit Fuel contracts

Power, heat and steam generation assets District heating demand forecast Steam demand forecast Power demand forecast

The BoFiT Toolbox with more than 150 components allows the

modeling of all known types of energy assets and portfolios Power markets for trading

Power price forecasts

CO₂balance of energy portfolio

District heating storage

Smart Power Plants

Enhanced Forecasting

• Customer Consumption vs. distributed Energy

• Grid Losses

• Market area, regional or nodal prices

• Impact from Weather

• Frequently updated

Multi-Asset and Cross-Commodity Portfolio Optimization

• Different fuel types and production commodities (Coal, Gas, Oil, CO2, hydro, power, heat, cooling, other)

• Different Assets and technologies

• Optimal operation of plant network

• Trading suggestions

Multi Markets

BoFiT Optimization

– Areas of Application

Mixed- integer- Optimization

Standard / Analytical profiles

Load extrapolation

Comparison of days

Artificial neural networks

Multivariate regressions

SARIMAX

Machine Learning

Demand

Power

Gas / Coal

Heating / Cooling

E-Mobility

Steam

Generation

Transmission

Prices

RES / DES

Sector coupling

Storage/Batteries

Network load

Segment load

Node load

RES integration

Grid losses

Short-Term Power

Realtime Power

Project experience - potential of cost reduction (Europe)

Function

Benefits

Effects

Planning chain & multiple market entry • Revenues from all markets

• Optimum planning at all time horizons • High level of automation

~ 5-15%

Handling planning data & generation optimization

• Low-cost energy resources utilisation • Schedule at minimum cost

• Equipment efficiency at optimum

~ 2%

Forecasting demand • Stable heat and power scheduling

• Balance energy cost reduction

~ 2-5%

• Optimum positioning & reserve management

~ 1%

Optimization & forecasting in production & manufactoring (examples)

Large energy consumption

• Power,

• Fuels

• Demand response

• (Raw materials)

Energy production

• Own power generation

• Steam production

• High levels of reliabilty needed

Energy markets participation

• Power markets

• Fuel markets

• Regulatory influences

Chemical/ food & pharma/ Fuel-industry

•Power consumption •Live steam consumption •Natural gas/ Oil

Cement production

•Power consumption

•Natural gas, coal, other raw materials

•Storage/ Crusher optimization/ Blending optimization

Steel and aluminium

•Power •Natural gas

•Equipment scheduling

Car-Manufactoring

•Power consumption •Power plant dispatch

Mining

•Power consumption

Trends

Industrial Production

Volatile fuel and power Markets Regulation Markets Volatile economies Energy Data $

Industrial Processes

– Characteristics from an energy perspective

Characteristics

▪ Energy as a crucial production input and cost factor:

➢ Steam consumption for industrial processes on different pressure levels

➢ Own power (co-) generation

➢ Gas/ Oil consumption and other fuels (e.g. own generation or in cement kilns)

➢ Electrical site demands due to processes and other equipment

➢ Grid restrictions

➢ Regulatory framework (taxes, subsidies, grid levies,..)

➢ Different markets to consider (power, fuels, final products)

Most important:

Security of supply for production processes

Digital twin

– Industry characteristics

Characteristics

▪ The digital twin is the mathematical representation of e.g.:

➢ The industry sites generation units (power, steam)

➢ The steam demand profiles and steam grids

➢ Raw material and final product demands

➢ Electrical site demand profile and grid restrictions

➢ Regulatory framework (taxes, subsidies, grid levies,..)

➢ Other technical restrictions (e.g. minimum operating times, start-up costs)

▪ Starting point for the digital twin is the availability of relevant data:

• Efficiencies

• Measurements/ Automation

➢

The digital twin aims to minimize the total operational cost and generates revenues from

power markets

Revenues

Reliabilty

Optimization of equipment scheduling Stage I

Techno-Economic Modelling of the production process from an energy perspective (e.g. steel, aluminium)

▪ The optimization models incorporates the relevant restrictions and minimizes the operational costs of energy

▪ Site load forecasting

▪ First level of potential from optimization & forecasting in an industrial context

Results:

➢ (Energy-) efficient operation of equipment by optimized scheduling of technical units

➢ Material saving operation from anticipatory scheduling (adapting to new production situations)

➢ Fuel saving and emission reduction/ efficient resource usage

➢ Own generation: cost-efficient production of steam and power, optimal power plant operation

Optimization of equipment scheduling Stage II

Techno-Economic Modelling of the production process connected to energy markets

▪ The optimization models captures additional revenue streams from the power markets (energy trading)

▪ Exploiting markets opportunities in the liberalized energy markets from longterm to shortterm markets

▪ Second level of potential from optimization & forecasting in an industrial context

Results:

➢ Market based power plant & equipment dispatch

➢ Additional revenue streams from market operation

➢ Industrial site operational flexibility (power plant & equipment) is traded on the markets

➢ Automated planning and trading

➢ Algorithmic Trading

Degree dependet of energy Market liberalisation

Market based equipment scheduling - example

Production process (cement mill power consumption is shifted by price signals)

✓ Avoids high price periods and shifts production by using inventory storage

✓ Avoids high levels of grid sourcing (capacity price)

✓ Respects technical and regulatory restrictions

Power-Price

Flat Electrical-schedule

Investment and strategic planning

Digital twin allows to answer questions in the strategic planning processes

▪ Expansion planning

▪ Evaluate Asset investment/ New technologies

▪ New (Energy-) market entry

▪ What is the cost of improving my carbon footprint/ unit efficiency? Energy Contract negotiation & valuation

▪ What is my optimal energy consumption profile given my assets?

▪ Which contract should I engage with?

▪ What contracts can I offer to 3rd _{parties as a supplier?}

▪ ….

Valuation of existing processes

▪ Is there potential in optimization?

▪ Is there potential in improving forecasts?

▪ How will a change in legislation impact my cash-flows?

Investment studies

– possible focucs areas

▪ Business ideas

▪ Assets, portfolios, networks

▪ Trading and sales

▪ Renewable and distributed energy sources ▪ Management and organization ▪ Sustainability, CO₂ Footprint, ▪ Technology concepts ▪ Trading options ▪ Expansion, conversion, dismantling assets ▪ System engineering

▪ System safety and security

▪ Development and scenarios

▪ Market dynamics

▪ Processes and business models

▪ Energy-Transistion and climate protection

▪ Regulation and transparency

Economic

Evaluation

Technology

Feasibility

Markets

Regulation

Digital twin setup- example

Goal - Indentify potential value

• Process: manual with BoFiT

• Output / Result

• Indentify adding value of the whole portfolio - management board proposal

• Input

• Historical data

• Energy Prices

• Production and demands

• Expert know-how on relevant restrictions and flexibilities of the plants (e.g. storage)

• Project tasks

• Specification Workshops

• Modelling one exemplary plant (digital twin)

• Finalising Management report

Goal - Creating continous value

• Process: partly automated

• Output (via sftp or E-Mail)

• Suggested optimized production plans for the plants

• Controlling: Profit (KPIs)

• Input (via sftp or E-Mail)

• Availability of plants

• Price forecasts

• Demand forecast

• Security margins

• Tasks

• Initial setup on plattform

• Modelling all plants (digital twin)

• Setup automatic process

Goal - Full digitalization and automation

• Process: fully automated

• ITA Client: User interface for each plant - Output

• Suggested optimized production plan (schedule)

• Live Benchmarking (Plan vs actual production)

• Interfaces to onsite IT environment

• ITA Client: User interface for each plant

• Live Availability of plants

• Live Price forecasts

• Live Demand forecast

• E.g. Autotrader

• Autotrading with trading supplier or with market

• Tasks

• Implement interfaces to local IT environment

• Open up market interfaces

• Create trading strategies

Latin America

Mercados Eléctricos Edificio Avante #4-6 La Libertad. El Salvador.

You can find us here

ProCom Locations

Aachen (HQ)

Berlin

Ningbo

CSI China Services Int. 731 Mingzhou Road 315800 Ningbo, China