A Second-Order Stochastic Dominance-Based Risk-Averse Strategy for Self-Scheduling of a Virtual Energy Hub in Multiple Energy Markets

Integrated energy systems are considered a practical solution to fulfill low-carbon energy systems. Accordingly, the concept of a virtual energy hub (VEH) and its capability to participate in different energy markets have attracted significant attention recently. In this regard, the self-scheduling...

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Main Authors: Saba Norouzi, Mohammad Amin Mirzaei, Kazem Zare, Miadreza Shafie-Khah, Morteza Nazari-Heris
Format: Article
Language:English
Published: IEEE 2024-01-01
Series:IEEE Access
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Online Access:https://ieeexplore.ieee.org/document/10509867/
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author Saba Norouzi
Mohammad Amin Mirzaei
Kazem Zare
Miadreza Shafie-Khah
Morteza Nazari-Heris
author_facet Saba Norouzi
Mohammad Amin Mirzaei
Kazem Zare
Miadreza Shafie-Khah
Morteza Nazari-Heris
author_sort Saba Norouzi
collection DOAJ
description Integrated energy systems are considered a practical solution to fulfill low-carbon energy systems. Accordingly, the concept of a virtual energy hub (VEH) and its capability to participate in different energy markets have attracted significant attention recently. In this regard, the self-scheduling problem of VEH, including a wide variety of uncertainties capable of participating in multiple energy markets, is addressed in this paper. To this end, a two-stage stochastic optimization has been implemented to solve the scheduling problem of a VEH equipped with renewable energy resources as well as conventional units as internal suppliers, different types of energy storage systems, hydrogen vehicles (HVs), and electric vehicles (EVs) in the intelligent parking lot (IPL). The studied VEH can participate in gas and hydrogen markets as well as day-ahead (DA) and real-time (RT) power and heat markets. The impact of flexible units, including energy storage systems and demand response programs, on the expected profit of the VEH is investigated accurately. Based on the obtained results employing a battery energy storage system (BESS), thermal energy storage system (TESS), hydrogen energy storage system (HESS), and cooling energy storage system (CESS) increases the profit of VEH by 0.88%, 0.62%, 1.5%, and 0.64%, respectively. Also, the profit of VEH can be increased by 1.02% and 0.25% by applying the electrical demand response program (EDRP) and thermal demand response program (TDRP), respectively. As risk management is critical for the participation of VEH in multiple energy markets, second-order-stochastic-dominance (SOSD) constraints are imposed on the scheduling problem instead of employing typical risk measures such as conditional value-at-risk (CVaR). Although the proposed risk-management method can shape optimal profit distribution based on the operators’ attitude toward risk, benchmark selection is the main obstacle to the mentioned approach. To this end, the CVaR-based benchmark selection method is applied to overcome the stated obstacle and guarantee the problem’s feasibility.
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issn 2169-3536
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spelling doaj-art-e89dba47049a45e0af7c3ffac8ade5222025-08-20T02:51:18ZengIEEEIEEE Access2169-35362024-01-0112843338435110.1109/ACCESS.2024.339451510509867A Second-Order Stochastic Dominance-Based Risk-Averse Strategy for Self-Scheduling of a Virtual Energy Hub in Multiple Energy MarketsSaba Norouzi0https://orcid.org/0009-0001-2100-5842Mohammad Amin Mirzaei1Kazem Zare2https://orcid.org/0000-0003-4729-1741Miadreza Shafie-Khah3https://orcid.org/0000-0003-1691-5355Morteza Nazari-Heris4https://orcid.org/0000-0001-9275-2856Faculty of Electrical and Computer Engineering, University of Tabriz, Tabriz, IranFaculty of Electrical and Computer Engineering, University of Tabriz, Tabriz, IranFaculty of Electrical and Computer Engineering, University of Tabriz, Tabriz, IranSchool of Technology and Innovations, University of Vaasa, Vaasa, FinlandCollege of Engineering, Lawrence Technological University, Southfield, MI, USAIntegrated energy systems are considered a practical solution to fulfill low-carbon energy systems. Accordingly, the concept of a virtual energy hub (VEH) and its capability to participate in different energy markets have attracted significant attention recently. In this regard, the self-scheduling problem of VEH, including a wide variety of uncertainties capable of participating in multiple energy markets, is addressed in this paper. To this end, a two-stage stochastic optimization has been implemented to solve the scheduling problem of a VEH equipped with renewable energy resources as well as conventional units as internal suppliers, different types of energy storage systems, hydrogen vehicles (HVs), and electric vehicles (EVs) in the intelligent parking lot (IPL). The studied VEH can participate in gas and hydrogen markets as well as day-ahead (DA) and real-time (RT) power and heat markets. The impact of flexible units, including energy storage systems and demand response programs, on the expected profit of the VEH is investigated accurately. Based on the obtained results employing a battery energy storage system (BESS), thermal energy storage system (TESS), hydrogen energy storage system (HESS), and cooling energy storage system (CESS) increases the profit of VEH by 0.88%, 0.62%, 1.5%, and 0.64%, respectively. Also, the profit of VEH can be increased by 1.02% and 0.25% by applying the electrical demand response program (EDRP) and thermal demand response program (TDRP), respectively. As risk management is critical for the participation of VEH in multiple energy markets, second-order-stochastic-dominance (SOSD) constraints are imposed on the scheduling problem instead of employing typical risk measures such as conditional value-at-risk (CVaR). Although the proposed risk-management method can shape optimal profit distribution based on the operators’ attitude toward risk, benchmark selection is the main obstacle to the mentioned approach. To this end, the CVaR-based benchmark selection method is applied to overcome the stated obstacle and guarantee the problem’s feasibility.https://ieeexplore.ieee.org/document/10509867/Integrated energy systemsvirtual energy hubmultiple energy marketssecond-order-stochastic-dominance risk-management method
spellingShingle Saba Norouzi
Mohammad Amin Mirzaei
Kazem Zare
Miadreza Shafie-Khah
Morteza Nazari-Heris
A Second-Order Stochastic Dominance-Based Risk-Averse Strategy for Self-Scheduling of a Virtual Energy Hub in Multiple Energy Markets
IEEE Access
Integrated energy systems
virtual energy hub
multiple energy markets
second-order-stochastic-dominance risk-management method
title A Second-Order Stochastic Dominance-Based Risk-Averse Strategy for Self-Scheduling of a Virtual Energy Hub in Multiple Energy Markets
title_full A Second-Order Stochastic Dominance-Based Risk-Averse Strategy for Self-Scheduling of a Virtual Energy Hub in Multiple Energy Markets
title_fullStr A Second-Order Stochastic Dominance-Based Risk-Averse Strategy for Self-Scheduling of a Virtual Energy Hub in Multiple Energy Markets
title_full_unstemmed A Second-Order Stochastic Dominance-Based Risk-Averse Strategy for Self-Scheduling of a Virtual Energy Hub in Multiple Energy Markets
title_short A Second-Order Stochastic Dominance-Based Risk-Averse Strategy for Self-Scheduling of a Virtual Energy Hub in Multiple Energy Markets
title_sort second order stochastic dominance based risk averse strategy for self scheduling of a virtual energy hub in multiple energy markets
topic Integrated energy systems
virtual energy hub
multiple energy markets
second-order-stochastic-dominance risk-management method
url https://ieeexplore.ieee.org/document/10509867/
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