An Integrated Design of Heat and Power Market for Energy Hubs Considering the Security Constraints of the System

Abstract

According to the development of Combined Heat and Power (CHP) units, and energy converter equipment such as Heat Pumps (HP), energy scheduling of thermal and electrical systems became more dependent on each other. Multi-energy systems with new technologies require new designs as Integrated Heat and Power Markets (IHPM) to use the complementary capabilities of multi-energy systems such as Energy Hubs (EH). In this regard, a decentralized market structure is provided to make the opportunity of trading heat and power bilaterally for connected EHs of the distribution system under an integrated market framework. The proposed market structure based on the ADMM improves the social welfare value, reduces the operating costs, and considers the privacy-preserving requirements for the market clearing process. Results analysis indicates that P2P energy trading enables the use of complementary capabilities of EHs, and also reduces the required reserve margin of each entity. According to the obtained results, the evolution of the IHPM would increase the line loading of the power system by up to 28%, which can lead to line congestion if the security constraints of the system not be considered in the electrical market design. The convergency and optimality of results are validated by a centralized model.