Bidding strategy of integrated energy system considering decision maker’s subjective risk aversion

Yangyang Liu, Jiangxin Zhou, Qihui Zhou, Chuanquan Liu and Feng Yu

Applied Energy, 2023, vol. 341, issue C, No S0306261923004932

Abstract: Improving energy efficient is a promising solution to save energy costs and reduce carbon emission. Based on energy cascade utilization technology, integrated energy systems can supply multiple energy carriers to customers efficiently. However, the integration of multiple energy systems and components brings various uncertainties to integrated energy systems, highlighting the importance of risk management when integrated energy systems participate in energy market. In this paper, spectral risk measure which can model decision makers’ subjective risk aversion is introduced. Two typical measures, exponential spectral risk measure and power spectral risk measure, are discussed and compared. Then, a bidding strategy based on spectral risk measure is proposed for integrated energy systems to participate in short-term energy markets. The optimal self-scheduling and bidding curves in the day-ahead electricity market can be obtained. Compared with the traditional risk measures, the spectral risk measure is a customized risk measure according to decision makers’ subjective attitude and it can improve the decision makers’ subjective preference on the optimal results, as illustrated by case studies.

Keywords: Integrated energy system; Spectral risk measure; Bidding strategy; Risk management; Energy hub (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1016/j.apenergy.2023.121129

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