Abstract

In this paper, two coordination frameworks are formulated involving multiple distributed energy systems (DESs) with flexible sources, which includes energy conversion and storage technologies and demand response programs. One is a centralized coordination framework whereby an energy management system jointly activates resources to maximize social welfare. The other is a decentralized framework proposed based on minimizing the cost of each stakeholder. The mathematical models are proposed to simultaneously determine the multiple energy production, conversion, storage, coordination, and demand response strategies. Moreover, the techno-economic and environmental performances of DESs are deeply analyzed. The results show that a win-win result for both individual and overall interests is achieved when either centralized or decentralized scheme is employed. Based on the consideration of privacy issues, the decentralized framework is a good alternative to the centralized one. The carbon tax may decrease the internal energy flow and increase the total emission under the decentralized framework. If we want to keep a low emission, the tax should be set in a reasonable range. The flexible sources contribute more on cost reduction under the decentralized framework, and may increase the emission of some stakeholders without consideration of the emission in the objective function.

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