A Stochastic-CVaR Optimization Model for CCHP Micro-Grid Operation with Consideration of Electricity Market, Wind Power Accommodation and Multiple Demand Response Programs

Yuwei Wang, Yuanjuan Yang, Liu Tang, Wei Sun and Huiru Zhao
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Yuwei Wang: Department of Economic Management, North China Electric Power University, Baoding 071003, China
Yuanjuan Yang: Department of Economic Management, North China Electric Power University, Baoding 071003, China
Liu Tang: Department of Economic Management, North China Electric Power University, Baoding 071003, China
Wei Sun: Department of Economic Management, North China Electric Power University, Baoding 071003, China
Huiru Zhao: School of Economics and Management, North China Electric Power University, Beijing 102206, China

Energies, 2019, vol. 12, issue 20, 1-33

Abstract: Combined cooling, heating and power (CCHP) micro-grids have the advantage of high energy efficiency, and can be integrated with renewable energies and demand response programs (DRPs). With the deepening of electricity market (EM) reforms, how to carry out operation optimization under EM circumstances will become a key problem for CCHP micro-grid development. This paper proposed a stochastic-CVaR (conditional value at risk) optimization model for CCHP micro-grid operation with consideration of EM participation, wind power accommodation and multiple DRPs. Specifically, based on the stochastic scenarios for EM clearing prices and wind power outputs uncertainties, the stochastic optimization method was applied to ensure the realization of operational cost minimization and wind power accommodation; the CVaR method was implemented to control the potential risk of operational cost increase. Moreover, by introducing multiple DRPs, the electrical, thermal and cooling loads can be transformed as flexible sources for CCHP micro-grid operation. Simulations were performed to show the following outcomes: (1) by applying the proposed stochastic-CVaR approach and considering multiple DRPs, CCHP micro-grid operation can reach better performance in terms of cost minimization, risk control and wind power accommodation etc.; (2) higher energy utilization efficiency can be achieved by coordinately optimizing EM power biddings; etc.

Keywords: combined cooling, heating and power (CCHP) micro-grid; electricity market; Stochastic optimization; conditional value-at-risk (CVaR); demand response program (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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