Optimal Strategy of Energy retailer in Integrated Market Using Smart Energy Hub Framework

Authors

Abstract

In this paper, a bi-level optimization problem is formulated to find the optimal strategy of energy retailer in integrated energy market using the smart energy hub concept. In the upper level problem, the energy retailer determines the price of energy carriers and the purchase amount from the wholesale market while aiming to maximize his own profits. The consumers decide on their purchase amount of energy carriers minimizing their energy bills. All market participants, including energy retailer, rival retailers, and consumers are assumed to be smart energy hubs to increase the competition in the market. In other words, all market participants have the ability to generate power. To evaluate the performance of the proposed model, the research has implemented a case study with one main energy retailer, two rivals, and 10 consumers. The results show the optimal behavior of the energy retailer in the market.

Keywords


[1] Mahmoudi, N., Kumar Saha, T. and Eghbal, M., "Developing a Scenario-Based Demand Response for Short-Term Decisions of Electricity Retailers", Power and Energy Society General Meeting (PES), 2013 IEEE. [2] Sekizaki, Sh., Nishizaki, I. and Hayashida, T., "Electricity Retail Market Model with Flexible Price Settings and Elastic Price-Based Demand Responses by Consumers in Distribution Network", Electrical Power and Energy Systems, Vol. 81, pp. 317-386, 2016. [3] Charwand, M., Ahmadi, M., Siano, P., Dargahi, V. and Sarno, D., "Exploring the Trade-Off between Competing Objectives for Electricity Energy Retailers through a Novel Multi-Objective Framework", Energy Conversion and Management, Vol. 91, pp. 12-18, 2015. [4] Bertrand, R. G., "Sale Prices Setting Tool for Retailers", IEEE Transactions on Smart Grid, in press. [5] Fotouhi Ghazvini, M. A., Soares, J., Horta, N., Neves, R., Castro, R. and Vale, Z., "A Multi-Objective Model for Scheduling of Short-Term Incentive-Based Demand Response Programs Offered by Electricity Retailers", Applied Energy, Vol. 151, pp. 102–118, 2015. [6] Karandikar, R.G., Khaparde, S.A. and Kulkarni, S.V., "Strategic Evaluation of Bilateral Contract for Electricity Retailer in Restructured Power Market", Electrical Power and Energy Systems, Vol. 32, pp. 457-463, 2010. [7] Bu, Sh., Yu, F. R. and Liu, P. X., "A Game-Theoretical Decision-Making Scheme for Electricity Retailers in the Smart Grid with Demand-Side Management", in IEEE International Conference on Smart Grid Communications (SmartGridComm), 17-20 Oct. 2011. [8] Khojasteh, M. and Jadid, Sh., "Decision-Making Framework for Supplying Electricity from Distributed Generation-Owning Retailers to Price-Sensitive Customers", Utilities Policy, Vol. 37, pp. 1-12, 2015. [9] Wei, W., Liu, F. and Mei, Sh., "Energy Pricing and Dispatch for Smart Grid Retailers under Demand Response and Market Price Uncertainty", IEEE Transactions on Smart Grid, Vol. 6, No. 3, May 2015. [10] Qian L. P., Zhang, Y. J., Huang, J. and Wu, Y., "Demand Response Management via Real-Time Electricity Price Control in Smart Grids", IEEE Journal on Selected Areas in Communications, Vol. 31, No. 7, July 2013. [11] Mancarella, P., "MES (multi-energy systems): An Overview of Concepts and Evaluation Models", Energy, Vol. 65, pp. 1-17, 2014. [12] Geidl, M., Koeppel, G., Favre-Perrod, P., Klockl, B., Andersson, G. and Frohlich, K., "Energy Hubs for the Future", IEEE Power and Energy Magazine, Vol. 5, pp. 24-30, 2007. [13] Chen, Y., Wei, W., Liu, F., Shafie-khah, M., Mei, Sh., João P. S. Catalão, "Optimal Contracts of Energy Mix in a Retail Market under Asymmetric Information", Energy, Vol. 165, Part B, pp. 634-650, 15 December 2018. [14] Sheikhi, A., Rayati, M., Bahrami, Sh. and Ranjbar, A. M., "Integrated Demand Side Management Game in Smart Energy Hubs", IEEE Transactions on Smart Grid, Vol. 6, No. 2, pp. 675-683, 2015. [15]Wang D., Hu Q., Jia H., Du W., Chen N., Wang X. and Fan M., "Integrated Demand Response in District Electricity-Heating Network Considering Double Auction Retail Energy Market based on Demand-Side Energy Stations", Applied Energy, Vol. 248, pp. 656-678, 15 Aug. 2019. [16] Khazeni, S., Sheikhi, A., Rayati, R., Soleymani, S., Ranjbar, A. M., "Retail Market Equilibrium in Multi-Carrier Energy Systems; a Game Theoretical Approach", IEEE Systems Journal, Vol. 13, No. 1, pp. 738-747, 2019. [17] Ruiz, C., Conejo, A. J. and Smeers, Y., "Equilibria in an Oligopolistic Electricity Pool With Stepwise Offer Curves", IEEE Transactions on Power Systems, Vol. 27, No. 2, pp. 752-761, 2012.