A Robust Optimization Approach for Smart Energy Market Revenue Management

Bin Zhang, Li Sun, Mengyao Yang (), Kin-Keung Lai and Bhagwat Ram
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Bin Zhang: School of International Economics and International Relations, Liaoning University, Shenyang 110136, China
Li Sun: School of International Economics and International Relations, Liaoning University, Shenyang 110136, China
Mengyao Yang: College of Economics and Management, Xidian University, Xi’an 710126, China
Kin-Keung Lai: Department of Industrial and Manufacturing Systems Engineering, Hong Kong University, Hong Kong, China
Bhagwat Ram: Centre for Digital Transformation, Indian Institute of Management Ahmedabad, Vastrapur 380015, India

Energies, 2023, vol. 16, issue 19, 1-14

Abstract: We propose a network optimization model for smart energy market management in the context of an uncertain environment. The network optimization considers the stochastic programming approach to capture the randomness of the unknown demands. We utilize the particle swarm optimization technique in the proposed model to solve the proposed optimization problem. The present research is based on the inclusion of stochastic demands and uncertain energy prices. Optimizing produced energy is crucial for efficient usage and meeting the targets. The proposed model also focuses on addressing sustainability concerns by minimizing energy consumption in the scheduling process. An improved particle swarm optimization technique is implemented for energy-efficient production. Parameters such as number of particles, iterations, and energy usage specification are customized. A fitness function is taken that considers both completion time and energy consumption. The optimal of energy consumption is also visualized. The decision makers employ risk aversion in the objective function of the optimization problem to measure the risk deviation of the expected energy management.

Keywords: smart energy management; robust optimization; particle swarm optimization (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: 2023
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