Optimal bidding strategy for an energy hub in energy market

An energy hub, as an active element in smart distribution grid, can participate in the day-ahead market via submitting bids to maximize its profit. The multi-input and multi-output energy vectors make energy hub different from other active elements. In this paper, a comprehensive optimal bidding str...

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Bibliographic Details
Published in:Energy (Oxford) 2018-04, Vol.148, p.482-493
Main Authors: Davatgaran, Vahid, Saniei, Mohsen, Mortazavi, Seyed Saeidollah
Format: Article
Language:English
Subjects:
Bidding strategy
Computer simulation
Electricity distribution
Electricity generation
Electricity pricing
Energy consumption
Energy hub
Handles
Markets
Mathematical models
Mixed integer
Optimization
Prosumer
Real time
Stochastic optimization
Stochasticity
Strategy
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Summary:An energy hub, as an active element in smart distribution grid, can participate in the day-ahead market via submitting bids to maximize its profit. The multi-input and multi-output energy vectors make energy hub different from other active elements. In this paper, a comprehensive optimal bidding strategy for an energy hub is modeled. The proposed model enables the energy hub to benefit from day-ahead and real-time markets. Stochastic optimization is proposed in this strategy to handle several market uncertainties consisting of day-ahead market prices, real-time market prices, and wind generation. The model takes advantages of multi-inputs vector of energy hub to submit the optimal bids including electricity selling/buying and optimizes the cost. Moreover, it handles the coupling between different types of loads. The problem is modeled as a mixed integer linear program. Numerical simulations evaluate the proposed model. •A model for optimal bidding strategy of energy hub is proposed.•The model employs specific features such as multi-disciplinary and flexibility.•A stochastic model is presented which is compatible for considering wind energy.•The model considers uncertainty of prices both in day-ahead and real-time markets.
ISSN:0360-5442
1873-6785
DOI:10.1016/j.energy.2018.01.174