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Economic-environmental risk-averse optimal heat and power energy management of a grid-connected multi microgrid system considering demand response and bidding strategy

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  • Rezaei, Navid
  • Pezhmani, Yasin
  • Khazali, Amirhossein

Abstract

In this paper, a risk-constrained stochastic mixed-integer linear programming (MILP) model is proposed for optimal bidding strategy of a grid-connected CHP-based multi-microgrid (MMG) system in energy and reserve markets considering environmental restrictions. A reward-based demand response program is considered in the proposed framework to realize demand-side management and boost the economic performance of the MMG system. Besides, conditional value-at-risk as a proper risk-averse index is incorporated into the developed mixed-integer programming formulation to hedge the risk of the low profits associated with worst scenarios. For this study, the uncertainty of energy market price, electrical load, and power generation of renewable energy sources are taken into account through employing stochastic programming. Meanwhile, given the global policy for emissions reduction, an emission constraint is considered into the model, ensuring a more green trading strategy. The obtained simulation results over a 24-h time horizon, demonstrate that increasing the risk factor leads to the profit decrement by almost 30.37% while the conservativeness of the MMG against the risk is improved. Also, the results reveal that by increasing the value of emission factor, the system's profit is decreased by about 30.03% while the MMG would be operated more environmental-friendly.

Suggested Citation

  • Rezaei, Navid & Pezhmani, Yasin & Khazali, Amirhossein, 2022. "Economic-environmental risk-averse optimal heat and power energy management of a grid-connected multi microgrid system considering demand response and bidding strategy," Energy, Elsevier, vol. 240(C).
    • Handle: RePEc:eee:energy:v:240:y:2022:i:c:s0360544221030930
    DOI: 10.1016/j.energy.2021.122844
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    4. Zhou, Kaile & Fei, Zhineng & Hu, Rong, 2023. "Hybrid robust decentralized optimization of emission-aware multi-energy microgrids considering multiple uncertainties," Energy, Elsevier, vol. 265(C).
    5. Li, Ling-Ling & Ji, Bing-Xiang & Liu, Guan-Chen & Yuan, Jian-Ping & Tseng, Shuan-Wei & Lim, Ming K. & Tseng, Ming-Lang, 2024. "Grid-connected multi-microgrid system operational scheduling optimization: A hierarchical improved marine predators algorithm," Energy, Elsevier, vol. 294(C).
    6. Esmaeil Valipour & Ramin Nourollahi & Kamran Taghizad-Tavana & Sayyad Nojavan & As’ad Alizadeh, 2022. "Risk Assessment of Industrial Energy Hubs and Peer-to-Peer Heat and Power Transaction in the Presence of Electric Vehicles," Energies, MDPI, vol. 15(23), pages 1-24, November.
    7. Zhou, Yanting & Ma, Zhongjing & Shi, Xingyu & Zou, Suli, 2024. "Multi-agent optimal scheduling for integrated energy system considering the global carbon emission constraint," Energy, Elsevier, vol. 288(C).
    8. Zhou, Xu & Ma, Zhongjing & Zou, Suli & Zhang, Jinhui, 2022. "Consensus-based distributed economic dispatch for Multi Micro Energy Grid systems under coupled carbon emissions," Applied Energy, Elsevier, vol. 324(C).

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