Strategic Behavior of Multi-Energy Players in Electricity Markets as Aggregators of Demand Side Resources Using a Bi-Level Approach

Maziar Yazdani-Damavandi; Nilufar Neyestani; Miadreza Shafie-khah; Javier Contreras; João P.S. Catalão

doi:10.1109/TPWRS.2017.2688344

Strategic Behavior of Multi-Energy Players in Electricity Markets as Aggregators of Demand Side Resources Using a Bi-Level Approach

Maziar Yazdani-Damavandi, Nilufar Neyestani, Miadreza Shafie-khah, Javier Contreras, João P.S. Catalão

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

The coordination of various energy vectors under the concept of multi-energy system (MES) has introduced new sources of operational flexibility to system managers. In this paper, the behavior of multi-energy players (MEP) who can trade with more than one energy carrier to maximize their profits and mitigate their operational risks has been investigated. The MES is represented based on a multilayer structure, namely the energy market, MEP, the local energy system (LES), and multi-energy demand. In such environment, an MEP aggregates LES and participates in the wholesale electricity market, simultaneously to maximize its profit. The decision-making conflict of the MEP with other energy players for the aggregation of LES and participation in the electricity market is modeled based on a bilevel approach. Numerical results show the behavior of the MEP as a prosumer in the electricity market to produce smoother demand and price profiles. Results reveal a mutual effect of local and wholesale equilibrium prices by increasing the share of the MEP.

Original language	English
Article number	7888563
Pages (from-to)	397-411
Number of pages	15
Journal	IEEE Transactions on Power Systems
Volume	33
Issue number	1
DOIs	https://doi.org/10.1109/TPWRS.2017.2688344
Publication status	Published - 1 Jan 2018
Externally published	Yes

Keywords

Resistance heating
Cogeneration
Electricity supply industry
Decision making
Natural gas
Adaptation models

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10.1109/TPWRS.2017.2688344

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title = "Strategic Behavior of Multi-Energy Players in Electricity Markets as Aggregators of Demand Side Resources Using a Bi-Level Approach",

abstract = "The coordination of various energy vectors under the concept of multi-energy system (MES) has introduced new sources of operational flexibility to system managers. In this paper, the behavior of multi-energy players (MEP) who can trade with more than one energy carrier to maximize their profits and mitigate their operational risks has been investigated. The MES is represented based on a multilayer structure, namely the energy market, MEP, the local energy system (LES), and multi-energy demand. In such environment, an MEP aggregates LES and participates in the wholesale electricity market, simultaneously to maximize its profit. The decision-making conflict of the MEP with other energy players for the aggregation of LES and participation in the electricity market is modeled based on a bilevel approach. Numerical results show the behavior of the MEP as a prosumer in the electricity market to produce smoother demand and price profiles. Results reveal a mutual effect of local and wholesale equilibrium prices by increasing the share of the MEP.",

keywords = "Resistance heating, Cogeneration, Electricity supply industry, Decision making, Natural gas, Adaptation models",

author = "Maziar Yazdani-Damavandi and Nilufar Neyestani and Miadreza Shafie-khah and Javier Contreras and Catal{\~a}o, {Jo{\~a}o P.S.}",

year = "2018",

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doi = "10.1109/TPWRS.2017.2688344",

language = "English",

volume = "33",

pages = "397--411",

journal = "IEEE Transactions on Power Systems",

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Strategic Behavior of Multi-Energy Players in Electricity Markets as Aggregators of Demand Side Resources Using a Bi-Level Approach. / Yazdani-Damavandi, Maziar; Neyestani, Nilufar; Shafie-khah, Miadreza et al.
In: IEEE Transactions on Power Systems, Vol. 33, No. 1, 7888563, 01.01.2018, p. 397-411.

Research output: Contribution to journal › Article › Academic › peer-review

TY - JOUR

T1 - Strategic Behavior of Multi-Energy Players in Electricity Markets as Aggregators of Demand Side Resources Using a Bi-Level Approach

AU - Yazdani-Damavandi, Maziar

AU - Neyestani, Nilufar

AU - Shafie-khah, Miadreza

AU - Contreras, Javier

AU - Catalão, João P.S.

PY - 2018/1/1

Y1 - 2018/1/1

N2 - The coordination of various energy vectors under the concept of multi-energy system (MES) has introduced new sources of operational flexibility to system managers. In this paper, the behavior of multi-energy players (MEP) who can trade with more than one energy carrier to maximize their profits and mitigate their operational risks has been investigated. The MES is represented based on a multilayer structure, namely the energy market, MEP, the local energy system (LES), and multi-energy demand. In such environment, an MEP aggregates LES and participates in the wholesale electricity market, simultaneously to maximize its profit. The decision-making conflict of the MEP with other energy players for the aggregation of LES and participation in the electricity market is modeled based on a bilevel approach. Numerical results show the behavior of the MEP as a prosumer in the electricity market to produce smoother demand and price profiles. Results reveal a mutual effect of local and wholesale equilibrium prices by increasing the share of the MEP.

AB - The coordination of various energy vectors under the concept of multi-energy system (MES) has introduced new sources of operational flexibility to system managers. In this paper, the behavior of multi-energy players (MEP) who can trade with more than one energy carrier to maximize their profits and mitigate their operational risks has been investigated. The MES is represented based on a multilayer structure, namely the energy market, MEP, the local energy system (LES), and multi-energy demand. In such environment, an MEP aggregates LES and participates in the wholesale electricity market, simultaneously to maximize its profit. The decision-making conflict of the MEP with other energy players for the aggregation of LES and participation in the electricity market is modeled based on a bilevel approach. Numerical results show the behavior of the MEP as a prosumer in the electricity market to produce smoother demand and price profiles. Results reveal a mutual effect of local and wholesale equilibrium prices by increasing the share of the MEP.

KW - Resistance heating

KW - Cogeneration

KW - Electricity supply industry

KW - Decision making

KW - Natural gas

KW - Adaptation models

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DO - 10.1109/TPWRS.2017.2688344

M3 - Article

SN - 0885-8950

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SP - 397

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JO - IEEE Transactions on Power Systems

JF - IEEE Transactions on Power Systems

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M1 - 7888563

ER -

Strategic Behavior of Multi-Energy Players in Electricity Markets as Aggregators of Demand Side Resources Using a Bi-Level Approach

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Keywords

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