Dynamic pricing and energy management of hydrogen-based integrated energy service provider considering integrated demand response with a bi-level approach

Abstract

Integrated energy system with a large-scale integration of renewable energy has witnessed an enormous growth recently. Besides, traditional electric demand response has gradually developed into integrated demand response (IDR). However, the renewable energy curtailment becomes a prominent problem. In addition, a reasonable trading mode between integrated energy service provider (IESP) and demander is required to ensure the benefits of both sides. To the end, the operation framework of an IESP comprising power to gas, fuel cell (FC) and carbon capture system (CCS) is established in the paper. Then the bilevel energy trading mode between IESP and users is proposed, wherein the upper level considers the IESP profit maximization while the lower level is to minimize consumers' cost. By utilizing Karush-Kuhn Tucker optimality condition and strong duality theory, the two-level model is recast into a tractable single-level mixed integer programming model. The simulation results show that: corresponding to the models with removing bilevel trading, IDR, FC and CCS, as well as CCS, 1) the formulated price can achieve peak cutting and valley filling, as well as improve the flexibility of the system operation. 2) the IESP and users can take benefit in the proposed model. For IESP, profit experiences an increase with a rate by 20.41 %, 3.2 % -16.8 % and − 15.9 %. For demander, cost witnesses a decline by 4.07 %, 3.69 %, 1.12 % and 0.89 %. 3) In terms of environmental benefit, the proposed model can not only achieve a carbon emissions mitigation but also maintain a relatively reasonable and acceptable economic advantage.