Strategic Behavior Modeling of Energy Aggregators in Electricity and Carbon Markets

Jialu Li; E. Libo; Xiao Liu; Binrong Zhang; Haipeng Xie; Yuxiong Huang; Zhaohong Bie

doi:10.1109/EI259745.2023.10512719

Strategic Behavior Modeling of Energy Aggregators in Electricity and Carbon Markets

Jialu Li
, E. Libo
, Xiao Liu
, Binrong Zhang
, Haipeng Xie
, Yuxiong Huang
, Zhaohong Bie

School of Electrical Engineering

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

Abstract

Energy aggregators (EA) play an important role in the electricity- carbon joint market. EA can aggregate traditional thermal power units and renewable energy generators, and their operation strategies will directly affect the renewable energy consumption, carbon emission allowances (CEA) and economic benefits of the system, and their decisions will play a counterproductive role in the pricing of electric energy and CEA. Firstly, based on the renewable portfolio standards, this paper proposed a clearing model of the electricity and carbon market for EA. Secondly, after fully considering the uncertainty of renewable energy, a two-stage optimization model that can maximize the benefits of EA and maximize social welfare is established by simulating the trading process of EA in the electric energy carbon emission rights market. Finally, by using the KKT theorems and dual theory, the initial nonlinear two-stage problem is transformed into a linear mathematical problem with equilibrium constraints. The above model is analyzed on the improved IEEE-30 node power grid model. The results show that the strategic behavior of EA both increases their revenue and effectively reduces the carbon emissions of the system.

Original language	English
Title of host publication	2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023
Publisher	Institute of Electrical and Electronics Engineers Inc.
Pages	3084-3089
Number of pages	6
ISBN (Electronic)	9798350345094
DOIs	https://doi.org/10.1109/EI259745.2023.10512719
State	Published - 2023
Event	7th IEEE Conference on Energy Internet and Energy System Integration, EI2 2023 - Hangzhou, China Duration: 15 Dec 2023 → 18 Dec 2023

Publication series

Name	2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023

Conference

Conference	7th IEEE Conference on Energy Internet and Energy System Integration, EI2 2023
Country/Territory	China
City	Hangzhou
Period	15/12/23 → 18/12/23

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Keywords

bi-level optimization model
carbon market
electricity market
energy aggregators
market equilibrium

Access to Document

10.1109/EI259745.2023.10512719

Cite this

Li, J., Libo, E., Liu, X., Zhang, B., Xie, H., Huang, Y., & Bie, Z. (2023). Strategic Behavior Modeling of Energy Aggregators in Electricity and Carbon Markets. In 2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023 (pp. 3084-3089). (2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/EI259745.2023.10512719

Li, Jialu ; Libo, E. ; Liu, Xiao et al. / Strategic Behavior Modeling of Energy Aggregators in Electricity and Carbon Markets. 2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023. Institute of Electrical and Electronics Engineers Inc., 2023. pp. 3084-3089 (2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023).

@inproceedings{dce5dff18af547c7b6030164b55da312,

title = "Strategic Behavior Modeling of Energy Aggregators in Electricity and Carbon Markets",

abstract = "Energy aggregators (EA) play an important role in the electricity- carbon joint market. EA can aggregate traditional thermal power units and renewable energy generators, and their operation strategies will directly affect the renewable energy consumption, carbon emission allowances (CEA) and economic benefits of the system, and their decisions will play a counterproductive role in the pricing of electric energy and CEA. Firstly, based on the renewable portfolio standards, this paper proposed a clearing model of the electricity and carbon market for EA. Secondly, after fully considering the uncertainty of renewable energy, a two-stage optimization model that can maximize the benefits of EA and maximize social welfare is established by simulating the trading process of EA in the electric energy carbon emission rights market. Finally, by using the KKT theorems and dual theory, the initial nonlinear two-stage problem is transformed into a linear mathematical problem with equilibrium constraints. The above model is analyzed on the improved IEEE-30 node power grid model. The results show that the strategic behavior of EA both increases their revenue and effectively reduces the carbon emissions of the system.",

keywords = "bi-level optimization model, carbon market, electricity market, energy aggregators, market equilibrium",

author = "Jialu Li and E. Libo and Xiao Liu and Binrong Zhang and Haipeng Xie and Yuxiong Huang and Zhaohong Bie",

note = "Publisher Copyright: {\textcopyright} 2023 IEEE.; 7th IEEE Conference on Energy Internet and Energy System Integration, EI2 2023 ; Conference date: 15-12-2023 Through 18-12-2023",

year = "2023",

doi = "10.1109/EI259745.2023.10512719",

language = "英语",

series = "2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023",

publisher = "Institute of Electrical and Electronics Engineers Inc.",

pages = "3084--3089",

booktitle = "2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023",

}

Li, J, Libo, E, Liu, X, Zhang, B, Xie, H, Huang, Y & Bie, Z 2023, Strategic Behavior Modeling of Energy Aggregators in Electricity and Carbon Markets. in 2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023. 2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023, Institute of Electrical and Electronics Engineers Inc., pp. 3084-3089, 7th IEEE Conference on Energy Internet and Energy System Integration, EI2 2023, Hangzhou, China, 15/12/23. https://doi.org/10.1109/EI259745.2023.10512719

Strategic Behavior Modeling of Energy Aggregators in Electricity and Carbon Markets. / Li, Jialu; Libo, E.; Liu, Xiao et al.
2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023. Institute of Electrical and Electronics Engineers Inc., 2023. p. 3084-3089 (2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

TY - GEN

T1 - Strategic Behavior Modeling of Energy Aggregators in Electricity and Carbon Markets

AU - Li, Jialu

AU - Libo, E.

AU - Liu, Xiao

AU - Zhang, Binrong

AU - Xie, Haipeng

AU - Huang, Yuxiong

AU - Bie, Zhaohong

PY - 2023

Y1 - 2023

N2 - Energy aggregators (EA) play an important role in the electricity- carbon joint market. EA can aggregate traditional thermal power units and renewable energy generators, and their operation strategies will directly affect the renewable energy consumption, carbon emission allowances (CEA) and economic benefits of the system, and their decisions will play a counterproductive role in the pricing of electric energy and CEA. Firstly, based on the renewable portfolio standards, this paper proposed a clearing model of the electricity and carbon market for EA. Secondly, after fully considering the uncertainty of renewable energy, a two-stage optimization model that can maximize the benefits of EA and maximize social welfare is established by simulating the trading process of EA in the electric energy carbon emission rights market. Finally, by using the KKT theorems and dual theory, the initial nonlinear two-stage problem is transformed into a linear mathematical problem with equilibrium constraints. The above model is analyzed on the improved IEEE-30 node power grid model. The results show that the strategic behavior of EA both increases their revenue and effectively reduces the carbon emissions of the system.

AB - Energy aggregators (EA) play an important role in the electricity- carbon joint market. EA can aggregate traditional thermal power units and renewable energy generators, and their operation strategies will directly affect the renewable energy consumption, carbon emission allowances (CEA) and economic benefits of the system, and their decisions will play a counterproductive role in the pricing of electric energy and CEA. Firstly, based on the renewable portfolio standards, this paper proposed a clearing model of the electricity and carbon market for EA. Secondly, after fully considering the uncertainty of renewable energy, a two-stage optimization model that can maximize the benefits of EA and maximize social welfare is established by simulating the trading process of EA in the electric energy carbon emission rights market. Finally, by using the KKT theorems and dual theory, the initial nonlinear two-stage problem is transformed into a linear mathematical problem with equilibrium constraints. The above model is analyzed on the improved IEEE-30 node power grid model. The results show that the strategic behavior of EA both increases their revenue and effectively reduces the carbon emissions of the system.

KW - bi-level optimization model

KW - carbon market

KW - electricity market

KW - energy aggregators

KW - market equilibrium

UR - https://www.scopus.com/pages/publications/85194172126

U2 - 10.1109/EI259745.2023.10512719

DO - 10.1109/EI259745.2023.10512719

M3 - 会议稿件

AN - SCOPUS:85194172126

T3 - 2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023

SP - 3084

EP - 3089

BT - 2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023

PB - Institute of Electrical and Electronics Engineers Inc.

T2 - 7th IEEE Conference on Energy Internet and Energy System Integration, EI2 2023

Y2 - 15 December 2023 through 18 December 2023

ER -

Li J, Libo E, Liu X, Zhang B, Xie H, Huang Y et al. Strategic Behavior Modeling of Energy Aggregators in Electricity and Carbon Markets. In 2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023. Institute of Electrical and Electronics Engineers Inc. 2023. p. 3084-3089. (2023 IEEE 7th Conference on Energy Internet and Energy System Integration, EI2 2023). doi: 10.1109/EI259745.2023.10512719

Strategic Behavior Modeling of Energy Aggregators in Electricity and Carbon Markets

Abstract

Publication series

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UN SDGs

Keywords

Access to Document

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