A decentralized business model for integrating energy hubs into flexibility markets within renewable-based smart grids

Abstract

This paper presents a bi-level model enabling energy hubs to release all their flexible capacities according to the price pulse in real-time flexibility markets. The Alternating Direction Method of Multipliers (ADMM) is used in the proposed model for decentralized coordination and maintaining the privacy of energy hubs and Smart Grid Operator (SGO). In this concept, hubs have electrical and thermal storage systems and can implement Integrated Demand Response (IDR) programs. Additionally, energy hubs can provide Vehicle-to-Grid (V2G) services through smart charging ofEVs under their coverage. The proposed model is implemented in GAMS on a modified IEEE 69-bus distribution system containing ten energy hubs, with the GUROBI solver used to solve it. Simulation results demonstrate that energy hubs, employing IDR, storage systems, and smart charging, have effectively delivered substantial local flexibility services to SGO. This has resulted in not only reducing their daily costs and those of SGO but also mitigating network losses. Keywords-smart grids, energy hubs, flexibility market, integrated demand response programs, vehicle-to-grid services, alternating direction method ofmultipliers.