Optimal energy management of integrated energy systems for strategic participation in competitive electricity markets

Abstract

The uncertainties originating from electricity markets, renewable distributed generations (RDG) and multi-energy loads pose huge challenges to the optimal energy management of the integrated energy system (IES) in competitive electricity markets. This paper develops an energy management framework (EMF) with a two-stage process for IES strategic participation in electricity markets, which can coordinate the operation of IES to comply with the two-settlement mechanism of the day-ahead and real-time markets. The former stage incorporates the conditional value-at-risk to make day-ahead bidding decisions for risk aversion towards uncertainties introduced by the electricity market. The latter coordinates the day-ahead bidding electricity to implement energy dispatch of IES for real-time market participation. Furthermore, supply-demand balances are formulated into chance constraints in the day-ahead bidding while real-time energy dispatch is implemented based on rolling model predictive control in response to uncertainties due to RDG and multi-energy loads. The proposed EMF is extensively assessed through two case studies in the PJM and Guangdong electricity markets. The numerical results demonstrate that the proposed EMF can effectively achieve day-ahead bidding of IES with risk aversion towards unexpected increases in operating costs caused by market uncertainties and determine the optimal operation scheme for its participation in the real-time market.