Real Options based Optimal Planning for Integrated Energy Systems under Long-term Uncertainties

Research output: Chapter or section in a book/report/conference proceedingChapter in a published conference proceeding

Abstract

Integrated energy system (IES) has the potential to increase the exploitation of renewable energy resources and improve overall energy efficiency. Nevertheless, demand-side uncertainties introduce high risks to the planning of IES, which cannot be resolved by traditional methods. This paper presents a novel real options (RO) based optimal planning approach for integrated electricity, natural gas system and heating systems. First, the random behaviors of load growth are captured through a stochastic module. Thereafter, the optimal planning strategy is obtained through a real option-based planning module and an optimal operation module. Both the total financial value of planning schemes and embedded strategic flexibility value are assessed. The proposed methodology is validated on a large-scale IES consisting of an IEEE 33-bus electricity system, 20-node gas system and 6-node heating system. Results illustrate the effectiveness of the proposed method in planning IES while including long-term uncertainties.

Original languageEnglish
Title of host publication2021 IEEE Power and Energy Society General Meeting, PESGM 2021
PublisherIEEE
ISBN (Electronic)9781665405072
DOIs
Publication statusPublished - 31 Dec 2021
Event2021 IEEE Power and Energy Society General Meeting, PESGM 2021 - Washington, USA United States
Duration: 26 Jul 202129 Jul 2021

Publication series

NameIEEE Power and Energy Society General Meeting
Volume2021-July
ISSN (Print)1944-9925
ISSN (Electronic)1944-9933

Conference

Conference2021 IEEE Power and Energy Society General Meeting, PESGM 2021
Country/TerritoryUSA United States
CityWashington
Period26/07/2129/07/21

Keywords

  • Flexibility value
  • Integrated energy system
  • Long-term uncertainty
  • Real options

ASJC Scopus subject areas

  • Energy Engineering and Power Technology
  • Nuclear Energy and Engineering
  • Renewable Energy, Sustainability and the Environment
  • Electrical and Electronic Engineering

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