Shadow prices for heat generation in time-dependent and dynamic energy systems

Shadow prices for heat generation are used to study the impact of changes in heat demand on the total system cost of an existing district-heating system in Sweden. The energy system may be considered to be both dynamic, because there is energy storage, and time-dependent since the electricity tariff is time-differentiated and the heat demand varies over the year and day. The energy system has been analysed with and without energy storage. The analysis shows that despite a reduction in system cost, the use of energy storage can result in higher shadow prices for heat generation in some time periods.