Risk-averse energy management of a water-heat-power virtual energy hub considering hosting capacity and Volt-VAR control of distribution network

Yasin Pezhmani and Navid Rezaei

Energy, 2025, vol. 318, issue C

Abstract: This paper proposes a two-layer optimization framework for energy management of two energy hubs, which are managed as a virtual energy hub (VEH) to participate in thermal market and supply heat, water, and power demands, considering hosting capacity of upstream distribution system for additional loads. In Layer 1, the maximum amount of power that can be absorbed by the energy hubs of the VEH from upstream distribution system is obtained based on the concept of hosting capacity considering wind power uncertainty. In Layer 2, a hybrid stochastic-robust model is employed for energy management of the VEH taking into account the limitations obtained from the results of Layer 1, while considering unexpected situations and the uncertainties of electricity price and solar panels. The proposed two-layer model is examined on a modified IEEE 33-bus test system integrated with renewable energy sources. The numerical results demonstrate that using on-load tap changer and mobile capacitor banks for volt-VAR control in the distribution system improves VEH profit by 5 %, while power sharing between energy hubs contributes an additional 2.35 % profit increase, showcasing the economic advantages of cooperative operation. Additionally, risk-averse strategy supports robust performance of the VEH under different operational conditions.

Keywords: Virtual energy hub; Water-energy nexus; Volt-VAR control; Power sharing; Hosting capacity; Contingency (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:318:y:2025:i:c:s0360544225005912

DOI: 10.1016/j.energy.2025.134949

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