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Optimal strategy of electricity and natural gas aggregators in the energy and balance markets

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  • Khojasteh, Meysam
  • Faria, Pedro
  • Lezama, Fernando
  • Vale, Zita

Abstract

This paper presents a stochastic two-stage model for energy aggregators (EAs) in the energy and balancing markets to supply electricity and natural gas to end-users equipped with combined heat and power (CHP) units. The suggested model takes into account the battery energy storage (BES) as a self-generating unit of EA. The upper and lower subproblems determine the optimal energy supply strategy of EA and consumption of consumers, respectively. In the lower subproblem, the McCormick relaxation is used to linearize the cost function of the CHP unit. To solve the proposed model, the two-stage problem is transformed into a linear single-stage problem using the KKT conditions of the lower subproblem, the Big M method, and the strong duality theory. The performance and efficiency of the proposed model are evaluated using a case study and three scenarios. According to the simulation results, adding CHP units to the energy-scheduling problem of BES-owned aggregators increases the profit of EA by 5.96% and decreases the cost of consumers by 1.57%.

Suggested Citation

  • Khojasteh, Meysam & Faria, Pedro & Lezama, Fernando & Vale, Zita, 2022. "Optimal strategy of electricity and natural gas aggregators in the energy and balance markets," Energy, Elsevier, vol. 257(C).
    • Handle: RePEc:eee:energy:v:257:y:2022:i:c:s0360544222016565
    DOI: 10.1016/j.energy.2022.124753
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    References listed on IDEAS

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    1. Đorđe Lazović & Željko Đurišić, 2023. "Advanced Flexibility Support through DSO-Coordinated Participation of DER Aggregators in the Balancing Market," Energies, MDPI, vol. 16(8), pages 1-26, April.
    2. Leszczyński, Jacek S. & Gryboś, Dominik & Markowski, Jan, 2023. "Analysis of optimal expansion dynamics in a reciprocating drive for a micro-CAES production system," Applied Energy, Elsevier, vol. 350(C).
    3. Wang, Cheng & Sayed, Ahmed Rabee & Zhang, Han & Zhang, Xian & Ren, Jianpeng & Jia, Qiyue & Bi, Tianshu, 2023. "Two-stage distributionally robust strategic offering in pool-based coupled electricity and gas market," Energy, Elsevier, vol. 265(C).
    4. Herding, Robert & Ross, Emma & Jones, Wayne R. & Charitopoulos, Vassilis M. & Papageorgiou, Lazaros G., 2023. "Stochastic programming approach for optimal day-ahead market bidding curves of a microgrid," Applied Energy, Elsevier, vol. 336(C).

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