Virtual smart energy Hub: A powerful tool for integrated multi energy systems operation

Leyla Bashiri Khouzestani, Mohammad Kazem Sheikh-El-Eslami, Amir Hosein Salemi and Iman Gerami Moghaddam

Energy, 2023, vol. 265, issue C

Abstract: The present work introduces a novel unit, named virtual smart energy hub (VSEH). VSEH consists of a combination of smart energy grids, smart energy hubs (SEHs), and virtual power plants (VPPs) and simultaneously benefits from the advantages of SEHs and VPPs on a smart-energy-grid platform. A comprehensive two-stage model was proposed to solve the VSEH optimal operation problem in order to trading in day-ahead and intraday heat and power market. The proposed stochastic programming model is risk based and the conditional value at risk (CVaR) index was employed to represent the risk in the scheduling model. On the first stage of the proposed model, VSEH schedules transactions amounts by considering energy prices and SEHs constraints in order to maximize profits from participation in day-ahead heat and power markets. In the second stage, VSEH, through the more accurate prediction of uncertainties before operation time and with the aim of maximizing profits and correcting deviations relative to the settled transactions in the first stage, re-schedules the SEHs in intraday heat and power markets. Non-arbitrage constraints were established between day-ahead and intraday energy markets in the proposed model. Moreover, the presented structure was modeled and comprehensively defined in mathematical terms as a mixed-integer linear programming (MILP) model with a minimum number of real variables. The performance of this model was evaluated by implementing it on a coalition with various SEHs, as a result of which the profitability of the coalition and the increase in the risk tolerance level of the SEHs group was confirmed. The results indicate that formation of the VSEH can act as means of risk management in addition to reducing risk-associated costs regardless of the circumstances on the day of operation and the acceptable level risk tolerance of the SEHs. In other words, the integration of SEHs will result in a lower risk aversion cost.

Keywords: Smart energy hub; Coalition; Multi energy systems; Virtual smart energy hub; Scheduling; Uncertainty; Conditional value at risk; Day-ahead and intraday market (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:265:y:2023:i:c:s0360544222032479

DOI: 10.1016/j.energy.2022.126361

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