Equilibrium state of a price‐maker energy hub in a competitive market with price uncertainties. Issue 6 (21st February 2020)

• Record Type: Journal Article
• Authors: Heidari, Ahmad; Mortazavi, Seyed Saeidollah; Bansal, Ramesh C.
• Is Part Of: IET renewable power generation. Volume 14:Issue 6(2020)
• Page Start: 976
• Page End: 985
• Publication Date: 2020-02-21
• Subjects: game theory -- Monte Carlo methods -- pricing -- power markets -- profitability -- stochastic programming; optimal bidding strategy -- competitive equilibrium market -- energy market -- price‐maker energy hub -- rival energy hubs -- price uncertainty -- competitive market -- Monte Carlo simulation -- stochastic bilevel programming -- profit maximisation -- deterministic case study; Renewable energy sources -- Periodicals; 333.79405
• DOI: 10.1049/iet-rpg.2019.0958
• Languages: English
• ISSNs: 1752-1416

Abstract

Abstract : This study proposes the optimal bidding of a price‐maker energy hub. It employs game theory for optimal bidding strategy in a competitive and equilibrium market. The high flexibility of the energy hub helps it to make a profit from participation in the energy market. This price‐maker energy hub has some energy converters and combined heat and power to deliver energy to its loads. The strategy is that the proposed energy hub maximises its profit with the presence of other rival energy hubs. There are price uncertainties modelled by the Monte Carlo simulation. Incomplete information in the competitive market is modelled by the game theory, which causes the problem to be stochastic and equilibrium programming. The proposed solution for this problem uses stochastic bi‐level programming. The optimal bidding strategy of price‐maker energy hub is modelled in the upper level, and modelling of market clearance is at the lower level. The proposed algorithm has been evaluated in comparative case studies. The obtained results show the efficiency of the equilibrium environment in profit maximisation. The effect of price uncertainty in profit maximisation is also compared with the deterministic case study.