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

Document Type : Original Article


Imam hossein university


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.


1. M. Geidl, G. Koeppel, P. Favre-Perrod, B. Klockl, G. Andersson, and
K. Frohlich, “Energy hubs for the future,”
IEEE Power and Energy
, vol. 5, no. 1, p. 24, 2007.
2. P. Favre-Perrod, “A vision of future energy networks,” in
2005 IEEE
Power Engineering Society Inaugural Conference and Exposition in
, pp. 13–17, IEEE, 2005.
3. A. Antenucci and G. Sansavini, “Extensive co2 recycling in power
systems via power-to-gas and network storage,”
Renewable and Sustainable Energy Reviews, vol. 100, pp. 33 – 43, 2019.
4. U. Mukherjee, M. Elsholkami, S. Walker, M. Fowler, A. Elkamel, and
A. Hajimiragha, “Optimal sizing of an electrolytic hydrogen production system using an existing natural gas infrastructure,”
Journal of Hydrogen Energy
, vol. 40, no. 31, pp. 9760–9772, 2015.
5. “,”
6. M. A. Mirzaei, A. Sadeghi-Yazdankhah, B. Mohammadi-Ivatloo,
M. Marzband, M. Shafie-khah, and J. P. Catalão, “Integration of emerging resources in igdt-based robust scheduling of combined power and
natural gas systems considering flexible ramping products,”
vol. 189, p. 116195, 2019.
7. T. Krause, G. Andersson, K. Frohlich, and A. Vaccaro, “Multiple-energy carriers: modeling of production, delivery, and consumption,” Proceedings of the IEEE, vol. 99, no. 1, pp. 15–27, 2011.
8. A. Shahmohammadi, M. Moradi-Dalvand, H. Ghasemi, and M. Ghazizadeh, “Optimal design of multicarrier energy systems considering
reliability constraints,”
IEEE Transactions on Power Delivery, vol. 30,
no. 2, pp. 878–886, 2015.
9. S. Moradi, R. Ghaffarpour, A. M. Ranjbar, and B. Mozaffari, “Optimal
integrated sizing and planning of hubs with midsize/large chp units
considering reliability of supply,”
Energy Conversion and Management,
vol. 148, pp. 974 – 992, 2017.
10. A. Shabanpour-Haghighi and A. R. Seifi, “Simultaneous integrated
optimal energy flow of electricity, gas, and heat,”
Energy Conversion
and Management
, vol. 101, pp. 579–591, 2015.
11. M. La Scala, A. Vaccaro, and A. Zobaa, “A goal programming methodology for multiobjective optimization of distributed energy hubs operation,”
Applied Thermal Engineering, vol. 71, no. 2, pp. 658–666, 2014.
12. M. Hemmati, B. Mohammadi-Ivatloo, S. Ghasemzadeh, and E. Reihani, “Risk-based optimal scheduling of reconfigurable smart renewable energy based microgrids,”
International Journal of Electrical Power
Energy Systems
, vol. 101, pp. 415 – 428, 2018.
13. M. A. Mirzaei, A. S. Yazdankhah, and B. Mohammadi-Ivatloo, “Stochastic security-constrained operation of wind and hydrogen energy storage
systems integrated with price-based demand response,”
Journal of Hydrogen Energy
, vol. 44, no. 27, pp. 14217–14227, 2019.
14. M. Z. Oskouei and A. S. Yazdankhah, “The role of coordinated load
shifting and frequency-based pricing strategies in maximizing hybrid
system profit,”
Energy, vol. 135, pp. 370–381, 2017.
15. A. Parisio, C. Del Vecchio, and A. Vaccaro, “A robust optimization approach to energy hub management,”
International Journal of Electrical
Power & Energy Systems
, vol. 42, no. 1, pp. 98–104, 2012.
16. S. Paudyal, C. A. Cañizares, and K. Bhattacharya, “Optimal operation
of industrial energy hubs in smart grids,”
IEEE Transactions on Smart
, vol. 6, no. 2, pp. 684–694, 2015.
17. F. Kamyab and S. Bahrami, “Efficient operation of energy hubs in
time-of-use and dynamic pricing electricity markets,”
Energy, vol. 106,
pp. 343–355, 2016.
18. M. D. Galus, R. La Fauci, and G. Andersson, “Investigating phev wind
balancing capabilities using heuristics and model predictive control,” in
IEEE PES General Meeting, pp. 1–8, IEEE, 2010.
19. V. Davatgaran, M. Saniei, and S. S. Mortazavi, “Optimal bidding strategy
for an energy hub in energy market,”
Energy, vol. 148, pp. 482–493,
20. M. Ghorab, “Energy hubs optimization for smart energy network system
to minimize economic and environmental impact at canadian community,”
Applied Thermal Engineering, vol. 151, pp. 214–230, 2019.
21. M. Zarif, S. Khaleghi, and M. H. Javidi, “Assessment of electricity price
uncertainty impact on the operation of multi-carrier energy systems,”
IET Generation, Transmission & Distribution, vol. 9, no. 16, pp. 2586–
2592, 2015.
22. A. Dini, S. Pirouzi, M. Norouzi, and M. Lehtonen, “Grid-connected
energy hubs in the coordinated multi-energy management based on
day-ahead market framework,”
Energy, vol. 188, p. 116055, 2019.
23. V. Davatgaran, M. Saniei, and S. S. Mortazavi, “Smart distribution system management considering electrical and thermal demand response
of energy hubs,”
Energy, vol. 169, pp. 38 – 49, 2019.
24. C. Chen, H. Sun, X. Shen, Y. Guo, Q. Guo, and T. Xia, “Two-stage
robust planning-operation co-optimization of energy hub considering
precise energy storage economic model,”
Applied Energy, vol. 252,
p. 113372, 2019.
25. M. H. Shams, M. Shahabi, M. Kia, A. Heidari, M. Lotfi, M. Shafiekhah, and J. P. Catalão, “Optimal operation of electrical and thermal
resources in microgrids with energy hubs considering uncertainties,”
Energy, vol. 187, p. 115949, 2019.
26. M. Nazari-Heris, M. A. Mirzaei, B. Mohammadi-Ivatloo, M. Marzband,
and S. Asadi, “Economic-environmental effect of power to gas technology in coupled electricity and gas systems with price-responsive
shiftable loads,”
Journal of Cleaner Production, p. 118769, 2019.
27. M. Götz, J. Lefebvre, F. Mörs, A. M. Koch, F. Graf, S. Bajohr, R. Reimert,
and T. Kolb, “Renewable power-to-gas: A technological and economic
Renewable energy, vol. 85, pp. 1371–1390, 2016.
28. A. Maroufmashat, M. Fowler, S. S. Khavas, A. Elkamel, R. Roshandel,
and A. Hajimiragha, “Mixed integer linear programing based approach
for optimal planning and operation of a smart urban energy network
to support the hydrogen economy,”
International Journal of hydrogen
, vol. 41, no. 19, pp. 7700–7716, 2016.
29. M. A. Bucher, T. W. Haring, F. Bosshard, and G. Andersson, “Modeling
and economic evaluation of power2gas technology using energy hub
concept,” in
2015 IEEE Power & Energy Society General Meeting,
pp. 1–5, IEEE, 2015.
30. K. AlRafea, M. Fowler, A. Elkamel, and A. Hajimiragha, “Integration of
renewable energy sources into combined cycle power plants through
electrolysis generated hydrogen in a new designed energy hub,”
International Journal of Hydrogen Energy, vol. 41, no. 38, pp. 16718–16728,
31. G. Guandalini, S. Campanari, and M. C. Romano, “Power-to-gas plants
and gas turbines for improved wind energy dispatchability: Energy and
economic assessment,”
Applied Energy, vol. 147, pp. 117–130, 2015.
32. J. Zhang, B. Ge, and H. Xu, “An equivalent marginal cost-pricing model
for the district heating market,”
Energy policy, vol. 63, pp. 1224–1232,
33. O. Björkqvist, J. Idefeldt, and A. Larsson, “Risk assessment of new pricing strategies in the district heating market: A case study at sundsvall
energi ab,”
Energy Policy, vol. 38, no. 5, pp. 2171–2178, 2010.
34. M. Pehnt and L. Schneider, “The future heating market and the potential
for micro cogeneration,” in
Micro Cogeneration, pp. 49–65, Springer,
35. A. N. Ghalelou, A. P. Fakhri, S. Nojavan, M. Majidi, and H. Hatami,
“A stochastic self-scheduling program for compressed air energy storage (caes) of renewable energy sources (ress) based on a demand
response mechanism,”
Energy Conversion and Management, vol. 120,
pp. 388–396, 2016.
36. F. Jabari, S. Nojavan, B. M. Ivatloo, and M. B. Sharifian, “Optimal
short-term scheduling of a novel tri-generation system in the presence
of demand response programs and battery storage system,”
Conversion and Management
, vol. 122, pp. 95–108, 2016.
37. A. Soroudi, M. Aien, and M. Ehsan, “A probabilistic modeling of photo
voltaic modules and wind power generation impact on distribution
IEEE Systems Journal, vol. 6, no. 2, pp. 254–259, 2012.
38. M. Vahid-Pakdel, S. Nojavan, B. Mohammadi-ivatloo, and K. Zare,
“Stochastic optimization of energy hub operation with consideration of
thermal energy market and demand response,”
Energy Conversion and
, vol. 145, pp. 117 – 128, 2017.
39. N. Zhang, Z. Hu, D. Dai, S. Dang, M. Yao, and Y. Zhou, “Unit commitment model in smart grid environment considering carbon emissions
IEEE transactions on smart grid, vol. 7, no. 1, pp. 420–427,