Strategic Behavior of Multi-Energy Players in Electricity Markets as Aggregators of Demand Side Resources Using a Bi-Level Approach

The coordination of various energy vectors under the concept of multi-energy system (MES) has introduced new sources of operational flexibility to system managers. In this paper, the behavior of multi-energy players (MEP) who can trade with more than one energy carrier to maximize their profits and...

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Bibliographic Details
Published in:IEEE transactions on power systems Vol. 33; no. 1; pp. 397 - 411
Main Authors: Yazdani-Damavandi, Maziar, Neyestani, Nilufar, Shafie-khah, Miadreza, Contreras, Javier, Catalao, Joao P. S.
Format: Journal Article
Language:English
Published: IEEE 01.01.2018
Subjects:
Adaptation models
Cogeneration
Decision making
Electricity market
Electricity supply industry
mathematical programming with equilibrium constraints (MPEC)
multi-energy player (MEP)
multi-energy system (MES)
Natural gas
Resistance heating
ISSN:0885-8950, 1558-0679
Online Access:Get full text
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Summary:The coordination of various energy vectors under the concept of multi-energy system (MES) has introduced new sources of operational flexibility to system managers. In this paper, the behavior of multi-energy players (MEP) who can trade with more than one energy carrier to maximize their profits and mitigate their operational risks has been investigated. The MES is represented based on a multilayer structure, namely the energy market, MEP, the local energy system (LES), and multi-energy demand. In such environment, an MEP aggregates LES and participates in the wholesale electricity market, simultaneously to maximize its profit. The decision-making conflict of the MEP with other energy players for the aggregation of LES and participation in the electricity market is modeled based on a bilevel approach. Numerical results show the behavior of the MEP as a prosumer in the electricity market to produce smoother demand and price profiles. Results reveal a mutual effect of local and wholesale equilibrium prices by increasing the share of the MEP.
ISSN:0885-8950
1558-0679
DOI:10.1109/TPWRS.2017.2688344