Exergy Battery Modeling and P2P Trading Based Optimal Operation of Virtual Energy Station

Abstract

Virtual energy stations (VESs) work as retailers to provide electricity and natural gas sale services for integrated energy systems (IESs), and guide IESs energy consumption behaviors to tackle the varying market prices via integrated demand response (IDR). However, IES customers are risk averse and show low enthusiasm in responding to the IDR incentive signals. To address this problem, exergy is utilized to unify different energies and allowed to be virtually stored and withdrawn for arbitrage by IESs. The whole incentive mechanism operating process is innovatively characterized by a virtual exergy battery. Peer to peer (P2P) exergy trading based on shared exergy storage is also developed to reduce the energy cost of IESs without any extra transmission fee. In this way, IES can reduce the economic loss risk caused by the market price fluctuation via the different time (time dimension), multiple energy conversion (energy dimension), and P2P exergy trading (space dimension) arbitrage. Moreover, the optimal scheduling of VES and IESs is modeled by a bilevel optimization model. The consensus based alternating direction method of multipliers (CADMM) algorithm is utilized to solve this problem in a distributed way. Simulation results validate the effectiveness of the proposed incentive mechanism and show that the shared exergy storage can enhance the benefits of different type IESs by 18.96%, 3.49%, and 3.15 %, respectively.