Robust energy and carbon trading model for interconnected energy hub centers in active distribution networks

The emergence of multi-carrier energy systems backed by high penetration of renewable energy resources (RERs) offers a promising opportunity for implementing joint energy and carbon markets in interconnected systems. However, with higher penetration of RERs, uncertainty remains a key element of joint energy and carbon markets posing risks to power system stability. Most existing uncertainty modeling approaches fall short of operational strategies for power system operation under uncertainty. This paper proposed an optimization model to study joint uncertainty-based energy and carbon trading between interconnected energy hub centers (EHCs) in active distribution network (ADN) systems using a hybrid robust/stochastic methodology. The results from the proposed hybrid method enable EHCs' operator to maintain the techno-economic operation of the centers under the uncertainties in electricity prices. In the proposed model, a demand response program (DRP) is also provided to the EHCs in order to help the operator better manage load demand under uncertainty. Simulations are carried out with four case studies on the IEEE 33-bus and modified 69-bus test distribution systems serving four EHCs. The simulation results show that EHCs' operation cost decreases by 1.95 % and 8.5 % through the implementation of DRP and the proposed joint energy and carbon trading model. Further, the results show that with an 8.06 % increase in the operational budget, EHCs’ operation becomes robust enough to tolerate up to 30 % increases in the electricity price.