Risk-aware day-ahead planning of an energy hub integrated with the carbon capture unit considering cap and trade concept, energy and carbon markets and demand side flexibility

Abstract

This paper optimizes the stochastic day-ahead planning of an energy hub considering the carbon capture system, energy and carbon markets and flexible loads to achieve a sustainable economical-environmental operation. In the p÷resented model, the cap and trade concept as a successful policy in the regulatory programs of governments is considered to limit the level of environmental pollution caused by industries. In addition, various uncertainties including the power of wind and solar units, load demand and market prices are handled using scenario generation and reduction approaches. The downside risk method is also utilized to evaluate both risk-neutral and risk-averse attitudes of the decision-maker. In the following, the influence of demand side flexibility is analyzed by a time-of-use strategy for all types of loads. The results show that a risk-averse attitude with the maximum possible robustness increases the expected cost by about 19.55 %, while the expected risk reduces by about 100 %. The responsive loads notably can mitigate the impact of uncertainties, where their 10 % flexibility decreases the expected cost by about 19.02 %. The simulations validate the positive effect of carbon capture technology and the cap and trade concept on the environment; however, more strict rules and severe penalties are required.