Optimal strategic coordination of distribution networks and interconnected energy hubs: A linear multi-follower bi-level optimization model

• Published in: International journal of electrical power & energy systems Vol. 119; p. 105925
• Main Authors: Mirzapour-Kamanaj, Amir, Majidi, Majid, Zare, Kazem, Kazemzadeh, Rasool
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.07.2020
• Subjects: Distribution network (DN); Energy hub; Local energy trade; Multi-follower bi-level optimization model; Optimal power exchange strategies; Distribution network (DN); Energy hub; Local energy trade; Multi-follower bi-level optimization model; Optimal power exchange strategies
• ISSN: 0142-0615; 1879-3517
• DOI: 10.1016/j.ijepes.2020.105925

•Bi-level framework for optimal energy exchange between DN and energy hubs.•Game-based method to optimize energy exchange between the leader and followers.•Linearized KKT optimality conditions to obtain game solutions.•Local energy trade of energy hubs with each other.•Assessing the essential impact of flexibility provided by hub energy systems. Energy hub systems have been developed in energy systems to provide sufficient flexibility in satisfying energy demands. In an energy hub system connected to distribution network (DN), input energy carriers can be converted into different energies like electricity, and heat to support the energy hub’s operator in supplying various types of energy demands and dealing with other competitive operators of similar energy hubs who seek to have cost-effective performance of their operating system. In this paper, a multi-follower bi-level optimization framework is developed for optimal interaction of energy hubs and DN in which total operation cost of DN is minimized subject to network’s constraints in the upper level problem while the total cost of each energy hub being connected to DN is minimized in the lower level problem. It is noteworthy that in addition to the DN, each energy hub is capable of exchanging power with other energy hubs to supply energy demand. The proposed model determines the optimal power exchange strategies between the energy hubs and DN in order to minimize the total operation cost associated with energy hubs and DN. The proposed bi-level model for optimal coordination of energy hubs and DN is a non-linear problem in which Karush–Kuhn–Tucker (KKT) optimality conditions are taken into account. The proposed model is linearized through applying linear constraints and then studied regarding the IEEE 33-bus test system and the strategic optimization results are analyzed to approve the efficiency of the proposed optimization model.