A Real-Time Optimization Framework For Trading Boiler Flexibility on Secondary Reserve Markets

The rising integration of renewable energy installations and large-scale unscheduled consumer loads has heightened the need for demand-side flexibility in grid-connected assets. With the adoption of the pan-European PICASSO market, the secondary reserve mechanism (aFRR) has been divided into two stages: the day-ahead capacity market and the real-time energy activation, unlocking new revenue streams for deferrable loads and flexible resources. However, as the energy activation of the committed power is purely determined by grid imbalances, the energy balance of the asset could deviate from the predicted day-ahead trajectory, leading to unmet demand or unexploited profits. This paper proposes an optimization algorithm for a boiler in Denmark to enable optimal trading in the PICASSO real-time energy market. The framework incorporates the heat demand baseline, thus allowing minor deviations to foster market profitability. Results demonstrate the viability of concurrent participation in ancillary services while fulfilling the boiler’s regular operational requirements, and assess the impact of aFRR participation on achieving the objective of minimizing operational costs.