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Distributed interactive optimization of integrated electricity-heat energy systems considering hierarchical energy-carbon pricing in carbon markets

Ruijie Liu, Zhejing Bao, Zhenting Yu, Chenjian Zhang

2023International Journal of Electrical Power & Energy Systems27 citationsDOIOpen Access PDF

Abstract

Considering the impractical direct participation of large number of end-consumers in the carbon emissions trading (CET) market, a distributed interactive optimization framework including the integrated energy supplier and end-consumers is proposed under the ladder-type carbon trading mechanism. A hierarchical Shapley based energy-carbon pricing strategy is developed to reasonably share the energy-carbon costs among end-users, giving incentive to end-users who respond to prices and achieve the participation in CET market. To reduce the costs of carbon emissions and energy consumption, the flexibility of both supplier and end-users are fully explored. Furthermore, the distributed alternating direction method of multipliers (ADMM) method with variable penalty parameters is employed to achieve the coordinated optimization with only limited and necessary information exchanged. Simulation results indicate that the framework proposed can encourage both the source and load to participate in energy-carbon market to reduce energy-carbon costs.

Topics & Concepts

Flexibility (engineering)IncentiveEnvironmental economicsElectricityComputer scienceEnergy marketEmissions tradingCarbon fibersEnergy consumptionElectricity marketGreenhouse gasIndustrial organizationBusinessMicroeconomicsEconomicsEngineeringComposite numberElectrical engineeringAlgorithmBiologyEcologyManagementIntegrated Energy Systems OptimizationSmart Grid Energy ManagementElectric Power System Optimization
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