IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v348y2023ics0306261923008759.html
   My bibliography  Save this article

Day-ahead bidding strategy of regional integrated energy systems considering multiple uncertainties in electricity markets

Author

Listed:
  • Wang, Yubin
  • Zheng, Yanchong
  • Yang, Qiang

Abstract

The regional integrated energy system (IES) is considered a promising paradigm for economic multi-energy provision while promoting the accommodation of renewable distributed energy resources (RDER). However, various uncertainties faced by the IES pose challenges to fulfilling its functionalities and economic promises. This paper proposes a day-ahead optimal bidding strategy of IES in electricity markets with multiple time scales of electricity settlement and energy dispatch for minimizing its expected operational cost based on the hybrid scenario-based stochastic and chance-constrained programming. It enables the IES to determine the optimal bidding electricity quantities in the day-ahead market in a multi-energy complementary manner by incorporating the potential real-time clearing price scenarios, with the uncertainties introduced by RDER generation and multi-energy loads efficiently addressed using chance constraints. Herein, a gradient boosted regression tree (GBRT) based quantile forecasting method is developed to equivalently reformulate the chance constraints to tractable deterministic constraints without any prior knowledge or probability distribution assumptions. The proposed day-ahead bidding strategy is extensively assessed through simulation experiments in the PJM and Guangdong electricity markets and the numerical results confirm the effectiveness of the proposed solution.

Suggested Citation

  • Wang, Yubin & Zheng, Yanchong & Yang, Qiang, 2023. "Day-ahead bidding strategy of regional integrated energy systems considering multiple uncertainties in electricity markets," Applied Energy, Elsevier, vol. 348(C).
    • Handle: RePEc:eee:appene:v:348:y:2023:i:c:s0306261923008759
    DOI: 10.1016/j.apenergy.2023.121511
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261923008759
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2023.121511?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wang, Fei & Ge, Xinxin & Yang, Peng & Li, Kangping & Mi, Zengqiang & Siano, Pierluigi & Duić, Neven, 2020. "Day-ahead optimal bidding and scheduling strategies for DER aggregator considering responsive uncertainty under real-time pricing," Energy, Elsevier, vol. 213(C).
    2. Wu, Min & Xu, Jiazhu & Zeng, Linjun & Li, Chang & Liu, Yuxing & Yi, Yuqin & Wen, Ming & Jiang, Zhuohan, 2022. "Two-stage robust optimization model for park integrated energy system based on dynamic programming," Applied Energy, Elsevier, vol. 308(C).
    3. Wang, Jianxiao & Zhong, Haiwang & Tang, Wenyuan & Rajagopal, Ram & Xia, Qing & Kang, Chongqing & Wang, Yi, 2017. "Optimal bidding strategy for microgrids in joint energy and ancillary service markets considering flexible ramping products," Applied Energy, Elsevier, vol. 205(C), pages 294-303.
    4. Das, Saborni & Basu, Mousumi, 2020. "Day-ahead optimal bidding strategy of microgrid with demand response program considering uncertainties and outages of renewable energy resources," Energy, Elsevier, vol. 190(C).
    5. Ferruzzi, Gabriella & Cervone, Guido & Delle Monache, Luca & Graditi, Giorgio & Jacobone, Francesca, 2016. "Optimal bidding in a Day-Ahead energy market for Micro Grid under uncertainty in renewable energy production," Energy, Elsevier, vol. 106(C), pages 194-202.
    6. Chen, Changming & Wu, Xueyan & Li, Yan & Zhu, Xiaojun & Li, Zesen & Ma, Jien & Qiu, Weiqiang & Liu, Chang & Lin, Zhenzhi & Yang, Li & Wang, Qin & Ding, Yi, 2021. "Distributionally robust day-ahead scheduling of park-level integrated energy system considering generalized energy storages," Applied Energy, Elsevier, vol. 302(C).
    7. Wang, Yubin & Dong, Wei & Yang, Qiang, 2022. "Multi-stage optimal energy management of multi-energy microgrid in deregulated electricity markets," Applied Energy, Elsevier, vol. 310(C).
    8. Zheng, Yanchong & Yu, Hang & Shao, Ziyun & Jian, Linni, 2020. "Day-ahead bidding strategy for electric vehicle aggregator enabling multiple agent modes in uncertain electricity markets," Applied Energy, Elsevier, vol. 280(C).
    9. Gu, Wei & Wang, Jun & Lu, Shuai & Luo, Zhao & Wu, Chenyu, 2017. "Optimal operation for integrated energy system considering thermal inertia of district heating network and buildings," Applied Energy, Elsevier, vol. 199(C), pages 234-246.
    10. Fazlalipour, Pary & Ehsan, Mehdi & Mohammadi-Ivatloo, Behnam, 2019. "Risk-aware stochastic bidding strategy of renewable micro-grids in day-ahead and real-time markets," Energy, Elsevier, vol. 171(C), pages 689-700.
    11. Nikpour, Ahmad & Nateghi, Abolfazl & Shafie-khah, Miadreza & Catalão, João P.S., 2021. "Day-ahead optimal bidding of microgrids considering uncertainties of price and renewable energy resources," Energy, Elsevier, vol. 227(C).
    12. Mu, Yunfei & Chen, Wanqing & Yu, Xiaodan & Jia, Hongjie & Hou, Kai & Wang, Congshan & Meng, Xianjun, 2020. "A double-layer planning method for integrated community energy systems with varying energy conversion efficiencies," Applied Energy, Elsevier, vol. 279(C).
    13. Yuan, Wenlin & Wang, Xinqi & Su, Chengguo & Cheng, Chuntian & Liu, Zhe & Wu, Zening, 2021. "Stochastic optimization model for the short-term joint operation of photovoltaic power and hydropower plants based on chance-constrained programming," Energy, Elsevier, vol. 222(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Yubin & Zheng, Yanchong & Yang, Qiang, 2023. "Optimal energy management of integrated energy systems for strategic participation in competitive electricity markets," Energy, Elsevier, vol. 278(PA).
    2. Rezaei, Navid & Pezhmani, Yasin & Khazali, Amirhossein, 2022. "Economic-environmental risk-averse optimal heat and power energy management of a grid-connected multi microgrid system considering demand response and bidding strategy," Energy, Elsevier, vol. 240(C).
    3. Guo, Hongye & Chen, Qixin & Shahidehpour, Mohammad & Xia, Qing & Kang, Chongqing, 2022. "Bidding behaviors of GENCOs under bounded rationality with renewable energy," Energy, Elsevier, vol. 250(C).
    4. Nikpour, Ahmad & Nateghi, Abolfazl & Shafie-khah, Miadreza & Catalão, João P.S., 2021. "Day-ahead optimal bidding of microgrids considering uncertainties of price and renewable energy resources," Energy, Elsevier, vol. 227(C).
    5. Wang, Yubin & Zheng, Yanchong & Yang, Qiang, 2023. "Nash bargaining based collaborative energy management for regional integrated energy systems in uncertain electricity markets," Energy, Elsevier, vol. 269(C).
    6. Das, Saborni & Basu, Mousumi, 2020. "Day-ahead optimal bidding strategy of microgrid with demand response program considering uncertainties and outages of renewable energy resources," Energy, Elsevier, vol. 190(C).
    7. Zhang, Xinyue & Guo, Xiaopeng & Zhang, Xingping, 2023. "Bidding modes for renewable energy considering electricity-carbon integrated market mechanism based on multi-agent hybrid game," Energy, Elsevier, vol. 263(PA).
    8. Chang, Weiguang & Dong, Wei & Yang, Qiang, 2023. "Day-ahead bidding strategy of cloud energy storage serving multiple heterogeneous microgrids in the electricity market," Applied Energy, Elsevier, vol. 336(C).
    9. Fang, Xiaolun & Dong, Wei & Wang, Yubin & Yang, Qiang, 2022. "Multiple time-scale energy management strategy for a hydrogen-based multi-energy microgrid," Applied Energy, Elsevier, vol. 328(C).
    10. Fang, Xiaolun & Wang, Yubin & Dong, Wei & Yang, Qiang & Sun, Siyang, 2023. "Optimal energy management of multiple electricity-hydrogen integrated charging stations," Energy, Elsevier, vol. 262(PB).
    11. Àlex Alonso-Travesset & Helena Martín & Sergio Coronas & Jordi de la Hoz, 2022. "Optimization Models under Uncertainty in Distributed Generation Systems: A Review," Energies, MDPI, vol. 15(5), pages 1-40, March.
    12. Wang, Yubin & Dong, Wei & Yang, Qiang, 2022. "Multi-stage optimal energy management of multi-energy microgrid in deregulated electricity markets," Applied Energy, Elsevier, vol. 310(C).
    13. Sun, Weijia & Wang, Qi & Ye, Yujian & Tang, Yi, 2022. "Unified modelling of gas and thermal inertia for integrated energy system and its application to multitype reserve procurement," Applied Energy, Elsevier, vol. 305(C).
    14. Jun Dong & Yuanyuan Wang & Xihao Dou & Zhengpeng Chen & Yaoyu Zhang & Yao Liu, 2021. "Research on Decision Optimization Model of Microgrid Participating in Spot Market Transaction," Sustainability, MDPI, vol. 13(12), pages 1-26, June.
    15. Wang, Fei & Ge, Xinxin & Yang, Peng & Li, Kangping & Mi, Zengqiang & Siano, Pierluigi & Duić, Neven, 2020. "Day-ahead optimal bidding and scheduling strategies for DER aggregator considering responsive uncertainty under real-time pricing," Energy, Elsevier, vol. 213(C).
    16. Dranka, Géremi Gilson & Ferreira, Paula & Vaz, A. Ismael F., 2021. "A review of co-optimization approaches for operational and planning problems in the energy sector," Applied Energy, Elsevier, vol. 304(C).
    17. Mehdizadeh, Ali & Taghizadegan, Navid & Salehi, Javad, 2018. "Risk-based energy management of renewable-based microgrid using information gap decision theory in the presence of peak load management," Applied Energy, Elsevier, vol. 211(C), pages 617-630.
    18. Mohseni, Soheil & Brent, Alan C. & Kelly, Scott & Browne, Will N., 2022. "Demand response-integrated investment and operational planning of renewable and sustainable energy systems considering forecast uncertainties: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    19. Iria, José & Scott, Paul & Attarha, Ahmad & Gordon, Dan & Franklin, Evan, 2022. "MV-LV network-secure bidding optimisation of an aggregator of prosumers in real-time energy and reserve markets," Energy, Elsevier, vol. 242(C).
    20. Jun Dong & Dongran Liu & Xihao Dou & Bo Li & Shiyao Lv & Yuzheng Jiang & Tongtao Ma, 2021. "Key Issues and Technical Applications in the Study of Power Markets as the System Adapts to the New Power System in China," Sustainability, MDPI, vol. 13(23), pages 1-29, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:348:y:2023:i:c:s0306261923008759. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.