Hierarchical operation planning based on carbon-constrained locational marginal price for integrated energy system

Abstract

Coordinated operation of integrated energy system (IES) enables multiple energy carriers work flexibly and effectively to achieve both economic and environmental benefits. However, this process cannot be exploited without equitable and attractive incentives. This paper proposed a novel low carbon operation framework by introducing a carbon constrained locational marginal price (LMP) under carbon trading scheme. The framework is modeled as a hierarchical problem including upper supply layer and lower regional consumption layer. The upper layer aims to minimize total energy supply cost with extra carbon trading results, while the lower layer aims to maximize regional consumer surplus based on the LMP and local carbon credits. Carbon emission flow (CEF) model is employed to trace the carbon flow and calculate the emission at each layer. The strength of P2G facilities in emission mitigation is involved. Furthermore, market risks are measured by applying conditional risk at value (CVaR). Case study is carried out based on a modified IES including modified IEEE-24 electricity system and 19-bus gas system, the simulation results demonstrate the effectiveness of the proposed framework.