A risk-based optimal self-scheduling of smart energy hub in the day-ahead and regulation markets

Arsalan Najafi*, Ahmad Tavakoli, Mahdi Pourakbari-Kasmaei, Matti Lehtonen

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

14 Citations (Scopus)


Utilizing multi-carrier energies such as wind energy, electric vehicle (EV) and battery banks are a significant step toward a cleaner production. Hence, This paper proposes a stochastic-based decision-making framework for the efficient short-term management of smart energy hub (EH) in restructured power systems with high penetration of renewable energy. The electrical and natural gas carriers are the input of smart EH, while the electricity and heat demands are considered as the outputs. The EH, including battery storage system (BSS) and EV fleet, is managed in the regulation market and day-ahead (DA) horizons. The energy hub operator makes optimal decisions regarding the natural gas network and energy supply for the thermal and electricity customers. An optimal self-scheduling model is developed to take into account the day ahead (DA) and regulation markets (RM) and decisions regarding generations of electrical and thermal devices as well as EV aggregator decisions. The primary goal of the proposed framework is minimizing the cost of procuring electricity and heat energy carriers in DA and regulation markets, including upward/downward regulations via a stochastic mixed-integer linear programming (MILP) approach. In order to get the uncertainty around the exact outcomes of RM prices, wind generation, and EV patterns, the model also takes into account the conditional value at risk (CVaR) term. The proposed formulation is examined by applying to a smart EH. Results show the effectiveness and usefulness of the proposed framework in managing the smart EHs efficiently. (c) 2020 Elsevier Ltd. All rights reserved.

Original languageEnglish
Article number123631
Number of pages17
JournalJournal of Cleaner Production
Publication statusPublished - 10 Jan 2021
MoE publication typeA1 Journal article-refereed


  • Day-ahead market
  • Regulation market
  • Risk management
  • Smart energy hub


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