Abstract

Combined heat and power system has become a hot topic recently because of the complementarity of electric and heat power. This paper considers the interconnected power distribution network(PDN) and district heating network(DHN) through CHP units and heat pumps. Firstly, the optimal thermal flow(OTF) problem of DHN and optimal power flow(OPF) problem of PDN are formulated considering the detailed network parameters. Based on these, a market model is proposed considering the decentralized operation of power and heating systems, and the model is an interactive optimization problem, i.e., a game. Hence, an iterative algorithm is developed to solve the market model and find the market equilibrium between the two networks. Such a framework offers an opportunity to operate the PDN and DHN in a decentralized manner. The simulation results demonstrate the potential benefits of the proposed market model in terms of wind power utilization and operation economy.

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