Litcius/Paper detail

Bi-level optimal scheduling of integrated energy systems considering incentive-based demand response and green certificate-carbon trading mechanisms

Haipeng Chen, Hao Wu, Haolin Li, Chen Fang, Siyuan Shui, Zhiwei Li

2024Energy Reports19 citationsDOIOpen Access PDF

Abstract

To address climate change and adapt to the shift in energy systems toward greater intelligence and diversity, integrated energy systems (IES) have emerged as a key approach to improve energy utilization and promote sustainable growth. However, the incorporation of IES adds complexity in harmonizing different mechanisms, complicating the simultaneous consideration of carbon emissions and operational expenses. Accordingly, this study introduces a bi-level optimal scheduling approach for IES that addresses current scheduling limitations, balances supply and demand, and includes carbon emissions management, with the integration of incentive-driven demand response (DR) and green certificate-carbon trading mechanisms. Firstly, a DR model utilizing time-of-use power pricing and dynamic carbon emission variables is established, directing consumers to adopt low-carbon behaviors through the transmission of carbon signals. Secondly, the interaction mechanism between green certificate trading (GCT) and carbon emission trading (CET) is examined, facilitating the coordinated operation of carbon quotas and pricing variables while preventing the double counting of carbon reduction attributes. Thirdly, a bi-level low-carbon economic optimization model has been built. The upper-level strategy aims to reduce supply-side costs related to CET and GCT, whereas the lower-level strategy seeks to optimize energy consumption and carbon emission costs on the demand side, thereby achieving coordinated optimization of carbon emissions and economic costs across both supply and demand sides. Finally, findings from the case study reveal that implementing green certificate-carbon trading along with incentive-based demand response effectively lowers operational costs and carbon emissions by 23.14 % and 16.38 %, respectively.

Topics & Concepts

IncentiveCertificateDemand responseEnvironmental economicsScheduling (production processes)Computer scienceBusinessNatural resource economicsMicroeconomicsEconomicsOperations managementEngineeringElectrical engineeringElectricityAlgorithmIntegrated Energy Systems OptimizationSmart Grid Energy ManagementMicrogrid Control and Optimization
Bi-level optimal scheduling of integrated energy systems considering incentive-based demand response and green certificate-carbon trading mechanisms | Litcius