Risk Assessment of Industrial Energy Hubs and Peer-to-Peer Heat and Power Transaction in the Presence of Electric Vehicles

Esmaeil Valipour, Ramin Nourollahi, Kamran Taghizad-Tavana, Sayyad Nojavan () and As’ad Alizadeh
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Esmaeil Valipour: Department of Electrical Engineering, University of Bonab, Bonab 55517-61167, Iran
Ramin Nourollahi: Faculty of Electrical and Computer Engineering, University of Tabriz, Tabriz 51666-16471, Iran
Kamran Taghizad-Tavana: Faculty of Electrical and Computer Engineering, University of Tabriz, Tabriz 51666-16471, Iran
Sayyad Nojavan: Department of Electrical Engineering, University of Bonab, Bonab 55517-61167, Iran
As’ad Alizadeh: Department of Civil Engineering, College of Engineering, Cihan University-Erbil, Erbil 44001, Iraq

Energies, 2022, vol. 15, issue 23, 1-24

Abstract: The peer-to-peer (P2P) strategy as a new trading scheme has recently gained attention in local electricity markets. This is a practical framework to enhance the flexibility and reliability of energy hubs, specifically for industrial prosumers dealing with high energy costs. In this paper, a Norwegian industrial site with multi-energy hubs (MEHs) is considered, in which they are equipped with various energy sources, namely wind turbines (WT), photovoltaic (PV) systems, combined heat and power (CHP) units (convex and non-convex types), plug-in electric vehicles (EVs), and load-shifting flexibility. The objective is to evaluate the importance of P2P energy transaction with on-site flexibility resources for the industrial site. Regarding the substantial peak power charge in the case of grid power usage, this study analyzes the effects of P2P energy transaction under uncertain parameters. The uncertainties of electricity price, heat and power demands, and renewable generations (WT and PV) are challenges for industrial MEHs. Thus, a stochastically based optimization approach called downside risk constraint (DRC) is applied for risk assessment under the risk-averse and risk-neutral modes. According to the results, applying the DRC approach increased by 35% the operation cost (risk-averse mode) to achieve a zero-based risk level. However, the conservative behavior of the decision maker secures the system from financial losses despite a growth in the operation cost.

Keywords: peer-to-peer energy transaction; distributed energy resources; downside risk constraint; risk-averse; risk-neutral (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: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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