Designing Transactive Market for Combined Heat and Power Management in Energy Hubs

This paper introduces a transactive market design for a combined heat and power (CHP) based energy hub (hub). The proposed model allows a hub operator to supply the hub's demands by participating in the day-ahead market and a transactive market with CHPs and also in the real-time market by using a recursive moving window algorithm. The proposed local energy market for a hub operator and CHPs is based on the double auction P2P trading mechanism. The model develops an optimal bidding and offering strategies for CHPs and hub operators, respectively, to achieve optimal transactions. The CHPs may be equipped with boiler unit and heat buffer tank (HBT) beside CHP units. The uncertain nature of the hub's electrical load, real-time and day-ahead markets prices and wind speed is addressed by using robust optimization. The procedure aimed at minimizing the worst-case CHP-based hub's demand procurement cost even though flexibly regulating the solution robustness. Further, case studies investigate the economic impact of robustness on the hub's cost.

Automated summary

This paper presents a transactive market design for a CHP-based energy hub, allowing the hub operator to balance supply and demand in various markets and address uncertainties using robust optimization, achieving optimal transactions.