A hybrid robust-stochastic approach to evaluate the profit of a multi-energy retailer in tri-layer energy markets

Morteza Zare Oskouei , Mohammad Amin Mirzaei, Behnam Mohammadi-Ivatloo, Mahmood Shafiee, Mousa Marzband, Amjad Anvari-Moghaddam

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

Nowadays, multi-energy consumers in the industrial sector have a significant contribution in exchange of different forms of energy such as electricity, heat, and natural gas. So, multi-energy consumers can provide excellent opportunities for market players to trade power in various energy markets. In this paper, a new entity called multi-energy retailer is introduced to simultaneously meet both flexible and non-flexible electrical, gas, and heat demands of multi-energy consumers, with a high level of supply reliability. The multi-energy retailer is equipped with cogeneration facilities and various storage technologies such as power-to-x storages to exploit the actual arbitrage opportunities in different layers of energy markets. The presented structure successfully models the behavior of multi-energy retailer entity and seeks to maximize its profit as well as increase the welfare level of the multi-energy consumers. The uncertainties associated with electricity market price and various demands of multi-energy consumers can affect the profit and optimal day-ahead scheduling of the multi-energy retailer. In order to accurately model such uncertainties, a hybrid robust-stochastic approach is utilized in this study. This approach helps the multi-energy retailer’s operator to evaluate the worst-case of the scheduling process for the entity. Finally, the profit of the multi-energy retailer entity is estimated in the presence of conversion facilities, demand response programs, and various uncertainties based on actual energy market data.
Original languageEnglish
Article number118948
Number of pages12
JournalEnergy
Volume214
Early online date1 Oct 2020
DOIs
Publication statusPublished - 1 Jan 2021

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