Two‐stage stochastic operation framework for optimal management of the water–energy–hub. Issue 22 (31st October 2019)

• Record Type: Journal Article
• Authors: Kavousi‐Fard, Abdollah; Su, Wencong; Jin, Tao; Papari, Behnaz
• Is Part Of: IET generation, transmission & distribution. Volume 13:Issue 22(2019)
• Page Start: 5218
• Page End: 5228
• Publication Date: 2019-10-31
• Subjects: stochastic programming -- power grids -- optimisation -- power markets -- linear programming -- integer programming -- pricing; MCP -- problem model -- bi‐level optimisation approach -- stochastic environment -- profit maximisation -- strategic producer -- lower‐level -- considered power grid -- problem formulation -- mathematical equilibrium constraints -- mixed‐integer linear programme -- Karush–Kuhn–Tucker conditions -- EH water demand -- EH electric demand -- strategic EH producer -- transmission‐constrained market -- stage stochastic operation framework -- optimal management -- water–EH -- bi‐level stochastic framework -- optimal scheduling -- energy hub -- pool‐based short‐term market -- electrical–thermal–water demands -- independent price‐maker producer -- day‐ahead electricity market -- market settlement mechanism -- pay‐at‐market‐clearing price; Electric power production -- Periodicals; Electric power transmission -- Periodicals; Electric power distribution -- Periodicals; 621.3105
• DOI: 10.1049/iet-gtd.2019.1125
• Languages: English
• ISSNs: 1751-8687

Abstract

Abstract : This study proposes a bi‐level stochastic framework to address optimal scheduling of energy hub (EH) in a pool‐based short‐term market considering electrical–thermal–water demands. EH acts as an independent price‐maker producer in a day‐ahead electricity market aiming to maximise its profit. The market settlement mechanism is constructed as the pay‐at‐market‐clearing price (MCP), where each producer/consumer is paid at the MCP. The problem model is formulated as a bi‐level optimisation approach in a stochastic environment, in which the upper level defines the profit maximisation of the proposed strategic producer, whereas the lower‐level expresses the dispatch cost of the considered power grid. This results in a problem formulation with mathematical equilibrium constraints which is transformed into a new mixed‐integer linear programme based on Karush–Kuhn–Tucker conditions. A stochastic framework based on unscented transform is developed to model the high uncertainties of EH water demand, EH thermal demand, EH electric demand, generators and loads submitted price to the market. The simulation results on the IEEE test system advocate the effectiveness and appropriate performance of the proposed strategic EH producer in the electricity market and its effect on the locational marginal prices of buses in a transmission‐constrained market.