Biogas Plant Operation under Distribution Locational Marginal Prices

With the omission of subsidy schemes, Biogas Plants (BPs) in Germany are facing an uncertain future. However, due to their ability to provide flexible renewable energy, they could play a major role in the future power system, in which the share of uncontrollable energy resources is expected to grow further. This paper proposes a flexible BP operation under Distribution Locational Marginal Prices (DLMPs) by formulating linear approximate BP and electric grid models followed by the derivation and decomposition of DLMPs from the optimal operation problem. The model behavior is demonstrated in a test case on a radially operated distribution grid with fixed loads and one BP. It is shown that the BP optimally adapts its feeding regime and storage usage based on the DLMP price signals consistent with grid conditions.