### Abstract

In a completely open energy market, the network-connected combined heat and power system (CHPs) is built in an energy supplying area. After the loads in the area are satisfied, its surplus heat and electricity will be imported to the corresponding heat and electric networks to gain additional profits. A maximum profit controller was proposed in this paper, together with the economic operation strategy. Through the status combination of the heat and electricity export to the network from the CHP or import to the energy supplying area from the network, we establish four profit models for the network-connected CHP and divid the CHP operation curve into several optimizing intervals of a day. Each interval corresponds to a specific profit model. Then, in each interval, we use gray forecasting model combined with least square method to work out the energy prices. Based on these prices, the discrete optimal solution of each interval's profit model can be obtained. Considering ramp rate, we use dynamic programming method to obtain optimal operation strategy in real time. Finally, we send all operation data into historical database as feedback control. Through all the steps above, the network-connected CHP's optimal operation strategy can be obtained with the maximum profit. Also, a demonstration example is conducted with a 1MW network-connected CHP in this paper.

Original language | English |
---|---|

Pages (from-to) | 685-696 |

Number of pages | 12 |

Journal | Zhongguo Dianji Gongcheng Xuebao/Proceedings of the Chinese Society of Electrical Engineering |

Volume | 38 |

Issue number | 3 |

DOIs | |

Publication status | Published - 23 Mar 2018 |

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### Keywords

- Discrete profit model
- Dynamic programming
- Maximum profit
- Network-connected combined heat and power
- Open energy market
- Price forecasting

### ASJC Scopus subject areas

- Electrical and Electronic Engineering

### Cite this

*Zhongguo Dianji Gongcheng Xuebao/Proceedings of the Chinese Society of Electrical Engineering*,

*38*(3), 685-696. https://doi.org/10.13334/j.0258-8013.pcsee.161760

**Optimal Profit Operation Strategy of the Network-connected CHP in Open Energy Market.** / Xie, Da; Luo, Tian; Gu, Chenghong; Li, Guojie; Tai, Jun.

Research output: Contribution to journal › Article

*Zhongguo Dianji Gongcheng Xuebao/Proceedings of the Chinese Society of Electrical Engineering*, vol. 38, no. 3, pp. 685-696. https://doi.org/10.13334/j.0258-8013.pcsee.161760

}

TY - JOUR

T1 - Optimal Profit Operation Strategy of the Network-connected CHP in Open Energy Market

AU - Xie, Da

AU - Luo, Tian

AU - Gu, Chenghong

AU - Li, Guojie

AU - Tai, Jun

PY - 2018/3/23

Y1 - 2018/3/23

N2 - In a completely open energy market, the network-connected combined heat and power system (CHPs) is built in an energy supplying area. After the loads in the area are satisfied, its surplus heat and electricity will be imported to the corresponding heat and electric networks to gain additional profits. A maximum profit controller was proposed in this paper, together with the economic operation strategy. Through the status combination of the heat and electricity export to the network from the CHP or import to the energy supplying area from the network, we establish four profit models for the network-connected CHP and divid the CHP operation curve into several optimizing intervals of a day. Each interval corresponds to a specific profit model. Then, in each interval, we use gray forecasting model combined with least square method to work out the energy prices. Based on these prices, the discrete optimal solution of each interval's profit model can be obtained. Considering ramp rate, we use dynamic programming method to obtain optimal operation strategy in real time. Finally, we send all operation data into historical database as feedback control. Through all the steps above, the network-connected CHP's optimal operation strategy can be obtained with the maximum profit. Also, a demonstration example is conducted with a 1MW network-connected CHP in this paper.

AB - In a completely open energy market, the network-connected combined heat and power system (CHPs) is built in an energy supplying area. After the loads in the area are satisfied, its surplus heat and electricity will be imported to the corresponding heat and electric networks to gain additional profits. A maximum profit controller was proposed in this paper, together with the economic operation strategy. Through the status combination of the heat and electricity export to the network from the CHP or import to the energy supplying area from the network, we establish four profit models for the network-connected CHP and divid the CHP operation curve into several optimizing intervals of a day. Each interval corresponds to a specific profit model. Then, in each interval, we use gray forecasting model combined with least square method to work out the energy prices. Based on these prices, the discrete optimal solution of each interval's profit model can be obtained. Considering ramp rate, we use dynamic programming method to obtain optimal operation strategy in real time. Finally, we send all operation data into historical database as feedback control. Through all the steps above, the network-connected CHP's optimal operation strategy can be obtained with the maximum profit. Also, a demonstration example is conducted with a 1MW network-connected CHP in this paper.

KW - Discrete profit model

KW - Dynamic programming

KW - Maximum profit

KW - Network-connected combined heat and power

KW - Open energy market

KW - Price forecasting

UR - http://www.scopus.com/inward/record.url?scp=85046881224&partnerID=8YFLogxK

U2 - 10.13334/j.0258-8013.pcsee.161760

DO - 10.13334/j.0258-8013.pcsee.161760

M3 - Article

VL - 38

SP - 685

EP - 696

JO - Zhongguo Dianji Gongcheng Xuebao/Proceedings of the Chinese Society of Electrical Engineering

JF - Zhongguo Dianji Gongcheng Xuebao/Proceedings of the Chinese Society of Electrical Engineering

SN - 0258-8013

IS - 3

ER -