Modeling and Economic Operation of Energy Hub Considering Energy Market Price and Demand

Il-oh Kang, Hyunseok You, Kyungshik Choi, Sung-kook Jeon, Jaehee Lee and Dongho Lee
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Il-oh Kang: H2 Technology R&D Division, KOGAS Research Institute, Ansan 15328, Korea
Hyunseok You: H2 Technology R&D Division, KOGAS Research Institute, Ansan 15328, Korea
Kyungshik Choi: H2 Technology R&D Division, KOGAS Research Institute, Ansan 15328, Korea
Sung-kook Jeon: Department of Electrical and Control Engineering, Mokpo National University, Chonnam 58554, Korea
Jaehee Lee: Department of Information and Electronic Engineering, Mokpo National University, Chonnam 58554, Korea
Dongho Lee: Department of Electrical and Control Engineering, Mokpo National University, Chonnam 58554, Korea

Sustainability, 2022, vol. 14, issue 4, 1-18

Abstract: This paper discusses the economic operation strategy of the energy hub, which is being established in South Korea. The energy hub has five energy conversion devices: a turbo expander generator, a normal fuel cell, a fuel cell with a hydrogen outlet, a small-scale combined heat and power device, and a photovoltaic device. We are developing the most economically beneficial operation strategy for the operators who own the hub, without making any systematic improvements to the energy market. First, sixteen conversion efficiency matrices can be achieved by turning each device (except the PV ) on or off. Next, even the same energy must be divided into different energy flows according to price. The energy flow is controlled to obtain the maximum profit, considering the internal load of the energy hub and the price fluctuations of the energy market. Using our operating strategy, the return on investment period is approximately 9.9 years, which is three years shorter than that without the operating strategy.

Keywords: energy management; energy conversion; power system economics; energy hub; sector coupling (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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