TY - GEN
T1 - Real Options based Optimal Planning for Integrated Energy Systems under Long-term Uncertainties
AU - Cheng, Shuang
AU - Gu, Chenghong
AU - Yang, Xinhe
AU - Li, Junlong
PY - 2021/12/31
Y1 - 2021/12/31
N2 - 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.
AB - 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.
KW - Flexibility value
KW - Integrated energy system
KW - Long-term uncertainty
KW - Real options
UR - http://www.scopus.com/inward/record.url?scp=85124151181&partnerID=8YFLogxK
U2 - 10.1109/PESGM46819.2021.9638245
DO - 10.1109/PESGM46819.2021.9638245
M3 - Chapter in a published conference proceeding
AN - SCOPUS:85124151181
T3 - IEEE Power and Energy Society General Meeting
BT - 2021 IEEE Power and Energy Society General Meeting, PESGM 2021
PB - IEEE
T2 - 2021 IEEE Power and Energy Society General Meeting, PESGM 2021
Y2 - 26 July 2021 through 29 July 2021
ER -
