This diploma thesis deals with the evaluation of current situation of the company IP IZOLACE POLNÁ, s.r.o. in its competitive environment. The aim of my thehis was to propose new ancillary services for the company based on the analyzes. According to the findings proposal consists of activities that should enhance its competitiveness in the coming years.

The technical use to create value and ease the work for companies have through the last years taken major steps. The use of information technology (IT) has revolutionized opportunities and forced companies to change their offerings in order not to lose their competitiveness in the market. Today, an established company no longer solely consists of a product that represents its business idea, but primarily how to create value together with the market's customers to meet their needs. The digital solution has thus become a popular way for companies to not only streamline the market but also their own business model. Through major changes in society, companies are forced to follow the development, which has brought about a customer focus. IT- companies use a huge business model with groups within the company with cutting-edge expertise to provide solutions to meet the customer's needs. Companies thus start from a basic offer of standardized services, but through co-creation with customers, the company's business model is further developed. The study therefore intends to understand how companies' business models are affected by digitization and how companies can make strategic and operational adaptations in order to meet the challenges of the future. This will be carried out with the support of interviews of the IT-companies` managers as well as the responsible group managers focused on digital tools and their business models. The results produced for the study show tendencies that the companies' business models contain certain more prominent elements in order to maintain a strong whole. These components need to somehow permeate the company's groups consisting of various cutting-edge competencies. Companies have also had different opinions regarding sustainability thinking and how they work around this in different ways. As the business market today consists of great competitiveness, the trust companies build with their customers is essential. A lost customer can create strong contacts with other companies throughout their entire customer lifetime and thus become difficult to win over at a later stage. Digitization will thus have a strong influence on the companies' business models for a continued strong strategy.

Participating in the ancillary services market, alongside the day-ahead market, can be economically beneficial for market actors. However, adopting an optimal bidding strategy is not straight forward. The decision-making process is subject to uncertainty, due to the prices being unknown before gate closure times. Furthermore, at some instances, the day-ahead production schedule might have to change to obtain the ability of reserving capacity. Previous research have studied the gains of adopting a coordinated bidding strategy. However, most of this research focus on the day-ahead market and the intraday market. Less focus it put on the ancillary services market. Additionally, smaller case studies are often carried out in previous research. For producers owning multiple power plants, treating every plant individually turns into a time consuming and complex process. This project constructs a model that instead uses a top-down approach. A system of hydropower plants is aggregated into one curve, representing the water valuation. This, together with a representation of available capacity for the system, gives the cost of delivering capacity. The cost is incurred through not producing optimally on the day-ahead market. Thereafter, modern portfolio theory is applied when determining how to allocate between the different products. Modifications to the traditional theory are made in order to better suit this context. Price forecasts are modelled as expected return, and historical price forecasting errors represents the risk. The model output is bid ladders for all capacity ancillary services. A top-down approach makes it possible for large scale producers to adopt the methodology, and results in a structured way of constructing the bids, while aiming at spreading the risk.

O presente trabalho propõe o desenvolvimento de uma metodologia de valoração da reserva de potência ativa e do suporte de potência reativa a partir de plantas hidroelétricas. Inicialmente foi apresentado um histórico que descreveu o que foi definido e regulamentado sobre estes serviços em diferentes mercados de energia. Em seguida, com o objetivo de valorar o serviço de reserva de potência ativa foi realizada a mensuração da perda de eficiência, resultante do fornecimento deste serviço, que após convertida em MWh foi relacionada à perda de oportunidade, caso essa energia fosse comercializada no mercado de energia. Para a valoração do suporte de potência reativa foi utilizada a teoria de Fluxo de Potência Ótimo com objetivo de minimizar as perdas do sistema e relacionar essa minimização à redução do suporte de potência reativa. Em seguida, foi apresentada uma metodologia de valoração e alocação dos custos do suporte de potência reativa entre as barras responsáveis pela necessidade adicional deste suporte. Foram realizados vários testes para validação e verificação das metodologias propostas. / The present study proposes valuation methodologies for the spinning reserve and for the reactive power support regarding hydroelectric plants. Initially, a revision describing what was defined and regulated on these services in different energy markets is presented. In order to valuate the spinning reserve service, the measurement of efficiency losses stemming from this service supply was done. Thereafter, the efficiency losses were converted into MWh and related to the opportunity loss, in case this energy was commercialized in the energy market. As for the reactive power support valuation, the Optimal Power Flow was used. The objective was to minimize the system losses and relate such a minimization to the reactive power support. Subsequently, methodologies for the reactive power support costs and for the cost allocation among the responsible buses for additional requirement of this support are also presented. Various tests to validate and verify the above mentioned methodologies were carried out.

O presente trabalho propõe o desenvolvimento de uma metodologia de valoração da reserva de potência ativa e do suporte de potência reativa a partir de plantas hidroelétricas. Inicialmente foi apresentado um histórico que descreveu o que foi definido e regulamentado sobre estes serviços em diferentes mercados de energia. Em seguida, com o objetivo de valorar o serviço de reserva de potência ativa foi realizada a mensuração da perda de eficiência, resultante do fornecimento deste serviço, que após convertida em MWh foi relacionada à perda de oportunidade, caso essa energia fosse comercializada no mercado de energia. Para a valoração do suporte de potência reativa foi utilizada a teoria de Fluxo de Potência Ótimo com objetivo de minimizar as perdas do sistema e relacionar essa minimização à redução do suporte de potência reativa. Em seguida, foi apresentada uma metodologia de valoração e alocação dos custos do suporte de potência reativa entre as barras responsáveis pela necessidade adicional deste suporte. Foram realizados vários testes para validação e verificação das metodologias propostas. / The present study proposes valuation methodologies for the spinning reserve and for the reactive power support regarding hydroelectric plants. Initially, a revision describing what was defined and regulated on these services in different energy markets is presented. In order to valuate the spinning reserve service, the measurement of efficiency losses stemming from this service supply was done. Thereafter, the efficiency losses were converted into MWh and related to the opportunity loss, in case this energy was commercialized in the energy market. As for the reactive power support valuation, the Optimal Power Flow was used. The objective was to minimize the system losses and relate such a minimization to the reactive power support. Subsequently, methodologies for the reactive power support costs and for the cost allocation among the responsible buses for additional requirement of this support are also presented. Various tests to validate and verify the above mentioned methodologies were carried out.

Generators bid into the deregulated electricity market in order to get committed & dispatched for meeting demands. In order to maximize their revenues & minimize the cost, systematic planning of the resources and analyzing the results is crucial to the success of any generation utility. UPLAN Network Power Model provides a convenient way to model & simulate the different expected conditions related to transmission, fuel costs & other variables which are of significant importance for generation planning and also allows us to analyze the way the output variables like capacity factors of generators, prices for Energy and Ancillary Services are affected by them. Based on a very simple model, this report describes the typical approach to UPLAN based resources planning & analyzes the significance of the results. Before that it also tried to understand the way UPLAN works for a very simple three bus model by stepwise introduction of complexity & analysis of results of the simulation runs. A few other issues like the Power Purchase Agreements, Congestion & Congestion Revenue Rights & the way Electricity is traded in the Deregulated Market are also presented. / text

abstract: The uncertainty and variability associated with stochastic resources, such as wind and solar, coupled with the stringent reliability requirements and constantly changing system operating conditions (e.g., generator and transmission outages) introduce new challenges to power systems. Contemporary approaches to model reserve requirements within the conventional security-constrained unit commitment (SCUC) models may not be satisfactory with increasing penetration levels of stochastic resources; such conventional models pro-cure reserves in accordance with deterministic criteria whose deliverability, in the event of an uncertain realization, is not guaranteed. Smart, well-designed reserve policies are needed to assist system operators in maintaining reliability at least cost. Contemporary market models do not satisfy the minimum stipulated N-1 mandate for generator contingencies adequately. This research enhances the traditional market practices to handle generator contingencies more appropriately. In addition, this research employs stochastic optimization that leverages statistical information of an ensemble of uncertain scenarios and data analytics-based algorithms to design and develop cohesive reserve policies. The proposed approaches modify the classical SCUC problem to include reserve policies that aim to preemptively anticipate post-contingency congestion patterns and account for resource uncertainty, simultaneously. The hypothesis is to integrate data-mining, reserve requirement determination, and stochastic optimization in a holistic manner without compromising on efficiency, performance, and scalability. The enhanced reserve procurement policies use contingency-based response sets and post-contingency transmission constraints to appropriately predict the influence of recourse actions, i.e., nodal reserve deployment, on critical transmission elements. This research improves the conventional deterministic models, including reserve scheduling decisions, and facilitates the transition to stochastic models by addressing the reserve allocation issue. The performance of the enhanced SCUC model is compared against con-temporary deterministic models and a stochastic unit commitment model. Numerical results are based on the IEEE 118-bus and the 2383-bus Polish test systems. Test results illustrate that the proposed reserve models consistently outperform the benchmark reserve policies by improving the market efficiency and enhancing the reliability of the market solution at reduced costs while maintaining scalability and market transparency. The proposed approaches require fewer ISO discretionary adjustments and can be employed by present-day solvers with minimal disruption to existing market procedures. / Dissertation/Thesis / Doctoral Dissertation Electrical Engineering 2018

Resumo: Esta tese visa ao estudo da valorização de serviços ancilares de reserva, particularmente, a reserva utilizada na regulação de freqüência e que é fornecida pelos geradores hidrelétricos. O objetivo principal do trabalho é desenvolver propostas que indiquem os custos reais desses serviços. Na valorização desses custos, busca-se motivar as empresas geradoras para que assumam a responsabilidade pela prestação de tais serviços, assim como garantir uma remuneração apropriada. Essa valorização é realizada em função da disponibilidade e do uso da reserva, sob uma operação segura e econômica do sistema. Para alcançar o objetivo proposto, inicialmente se realiza uma revisão das características técnicas e dos métodos de valorização dos serviços de reserva em diferentes sistemas. Posteriormente, ilustram-se as características do setor elétrico brasileiro, com a finalidade de contextualizar a valorização no marco de regulação , comercialização e operação correspondentes. Seguidamente, apresentam-se duas propostas de valorização. A primeira considera o ponto de vista de um agente gerador, cujo objetivo é estabelecer o valor do serviço a partir dos custos incorridos no fornecimento. Esses custos incluem, principalmente, os custos pela disponibilidade e pelo uso do serviço. Dentro desses componentes de custo, destaca-se o custo por perdas de eficiência, o qual é calculado utilizando um algoritmo de despacho ótimo de unidades. Essa abordagem é aplicada no cálculo do custo da reserva na usina hidrelétrica de Ilha Solteira. Nesse cálculo são utilizados dados da Companhia Energética de São Paulo - CESP. A segunda proposta considera o ponto de vista do operador de rede, em um ambiente de mercado, no qual os agentes participantes podem ofertar pela disponibilidade da reserva. Para a atribuição dessa reserva utiliza-se um despacho ótimo hidrelétrico, que inclui rest / Abstract: This work presents a reserve ancillary services pricing research. Particularly, the reserve that is used for frequency regulation and that is provided by hydroelectric generators. The development of pricing methodologies, that show real reserve delivery costs, is the main target of this project. Ancillary services pricing procures incentives to motivate agents to take responsibilities in the service supply and ensuring an appropriated remuneration. This pricing is based on the use and availability costs of reserve; under an economic and reliable system operation. In order to do that, firstly an overview of technical characteristics and pricing methods of the ancillary services in different systems is presented. Then, in order to fit this pricing methodology to the corresponding regulation, commercialization and operation rules, an introduction of the Brazilian electrical sector is realized. Next, two reserve ancillary services pricing methods are presented. The first one considers a hydraulic generator point of view. In this case, the aim is to set up the real value of the services by mean of a generator costs analysis. These costs include, basically, availability and use costs. Inside these cost components, efficiency costs are highlighted, and a single generator unit commitment dispatch is used to calculate them. This proposal is applied to calculate the ancillary service reserve costs in the Ilha Solteira hydroelectric generator, using data from the Companhia Energ'etica of S˜ao Paulo (CESP). The second pricing method considers the operator system point of view, under a market environment. In these circumstances, agents are free to set up a price offer for the availability of the reserve. To attribute the reserve, an optimal hydroelectric dispatch is used, considering electrical and hydraulic constraints. This methodology is tested in two systems. The first one represents a didactic three bus / Orientador: Antonio Padilha Feltrin / Coorientador: José Maria Yusta Loyo / Banca: Rubén Augusto Romero Lázaro / Banca: Carlos Roberto Minussi / Banca: Ricardo Bernardo Prada / Banca: Thales Souza / Doutor

The increasing demand for renewable energy sources to meet climate targets and reduce carbon emissions poses challenges to the power grid due to their intermittent nature. One potential solution to maintain grid stability is by implementing Hybrid Energy Systems (HESs) that incorporate a Battery Energy Storage System (BESS). To achieve the most favorable outcome in terms of both technical feasibility and profitability of a BESS, it is essential to employ models for simulating and optimizing the control of system components. This thesis focuses on the analysis of energy and revenue streams in a HES consisting of a BESS, photovoltaics (PVs), and an energy load including a fast charging station for electric vehicles (EVs). The objective is to optimize the system based on revenue generation by comparing the control techniques of peak shaving, energy arbitrage, and the integration of ancillary services within the Swedish energy market. The research questions explore the optimal utilization of the BESS and assess the impact of the different control techniques. A model is created in Python with the package CasADi where data from an ongoing installation of a HES in southern Sweden is combined with data from literature research. The model includes an objective function that minimizes the total cost of power from the grid based on the day-ahead price, battery degradation, and monthly peak power.  To answer the research questions, four different scenarios are simulated. The first scenario is a base for comparison, the second one focuses on peak shaving and energy arbitrage, the third on participation in the ancillary service FCR-D upwards regulation, and the last one is a combination of peak shaving, energy arbitrage, and the ancillary service FCR-D. The results show that the remuneration from the ancillary service FCR-D is comparably much higher than the revenues generated from peak shaving and energy arbitrage, providing more than 500% of revenue compared to the same system but without a BESS. The scenario with peak shaving and energy arbitrage shows an increase in revenue of 29% but with more cycling of the battery which could cause losses in performance in the long term. To validate the results, sensitivity analyses are conducted by evaluating weighting in the objective function, implementing Model Predictive Control (MPC), and reviewing price variations.  In conclusion, efficient control techniques can enhance system performance, minimize losses, and ensure optimal utilization of different energy sources, leading to improved feasibility and profitability. The optimal usage of a BESS involves finding a balance between maximizing revenue generation and minimizing battery degradation. This can be achieved through control strategies that optimize the charging and discharging patterns of the BESS based on electricity price signals, demand patterns, and battery health considerations.

With the increase in energy demand, and therefore, in energy generation, new high voltage direct current export links and overseas connections of large amounts of power are being introduced. These new links are subject to possible malfunction or failures, which may causea substantial frequency increase in the power system. The need of restorative measurements for over-frequencies is then necessary to regulate this probable imbalance. A new ancillary market product for frequency down-regulation is then being introduced. The Frequency Containment Reserves – Disturbances for downregulation is a service used to handle overfrequencies in the power system. The ancillary market has been historically dominated by hydro, however, with the local plans that set goals to reach 100 % renewable electricity production by the year 2040, ineluctably solar and wind will be occupying a large share of the energy generation, thus the amount of renewable resources to provide ancillary services will increase as well. Nevertheless, requirements to participate in the ancillary market are strict, and renewables face challenges such as unpredictable power generation, making forecasting tools essential for their participation. In this thesis, through the literature and research of an emerging field, the synthetic solar irradiance, an algorithm with adjusted parameters is replicated with the objective of downscaling solar irradiance presumptive-forecasts from 15-minute intervals to 1-minute intervals. An updated clear-sky model, and weather categorization method is used as input to improve the results of the synthesis. A year evaluation with a method to detect irradiance dips is used to evaluate the algorithm. The result of this study contributes with positive outputs. The introduction of this secondary tool to estimate higher resolution irradiance variability data proves to obtain, at 57 % of the point-to-point critical cases examination, an over-estimation of the measured irradiance. This, in turn, grants the actors that participate with solar power the option to adjust the bidding strategy process in the ancillary market accordingly to the output of this tool.