Stochastic optimization of operation of power to gas included energy hub considering carbon trading, demand response and district heating market

Abstract

The presence of new devices with their new technology makes the optimal scheduling of energy hub's operation more complicated and challenging, however brings more flexibility. Power to gas as one of recent type of energy storages, can enable the energy hub in carbon trading market based on its carbon recycling feature. Participation in carbon emission trading market can be considered as suitable option for reducing the operation cost. In this paper, an energy hub included power to gas technology has been investigated. In addition to power to gas, the combined heat and power unit beside the gas powered boiler make the different energy conversion to each other possible. District heating network among market context has been considered as well as electricity. The demand response program as one of smart grid's strategies has been employed beside the other control variables of energy hub. Finally, the uncertainties of problem such as demands, renewable sources production, prices are handled by using stochastic optimization method. A mixed integer linear programming formulation has been proposed for optimization of defined energy hub's operation. The output results demonstrate that added flexibility by participation in carbon emission trading market and demand response program are capable for 2% reduction of operation cost.