Risk-based energy management of industrial buildings in smart cities and peer-to-peer electricity trading using second-order stochastic dominance procedure

• Published in: Sustainable cities and society 2022-02, Vol.77, Article 103550
• Main Authors: Jian, Peiru, Guo, Tiantong, Wang, Dan, Valipour, Esmaeil, Nojavan, Sayyad
• Format: Article
• Language: English
• Subjects: Electricity market; Industrial area; Peer-to-peer trade; Risk-averse; Risk-neutral; Shared storage; Stochastic dominance
• ISSN: 2210-6707; 2210-6715
• DOI: 10.1016/j.scs.2021.103550

•For an industrial site, the P2P electricity trading methodology is considered.•A central battery as the shared storage unit is applied.•Adaptation of stochastic dominance for evaluation of financial risks.•Risk-averse and risk-neutral models of an industrial area is studied. Generally, industrial consumers face various financial problems due to their high energy consumption. Because during the peak demand periods, the electricity power has its highest cost value. In this regard, the peer-to-peer electricity trading method is considered an industrial site that includes five interconnected buildings and is equipped with onsite flexibility and distributed energy resources (DERs). The regarded industrial site has been evaluated under three different case studies to optimize the system's performance in the electricity market against the financial risks. However, in the last case study that the shared storage unit is established, a risk evaluation method called stochastic dominance (SD) is applied to show the operation of the system in the risk-averse and risk-neutral models. According to the obtained results, 22% and 15% of the energy cost are deduced in the third case compared with the first and second case studies, respectively.