Reducing Uncertainty in Energy Hub Operation: A Demand Response Approach for Improved Cost-Efficiency

Abstract

In this article, a daily programming was performed for an energy hub (EH). This EH has a typical electricity generation unit, a boiler, a combined heat and power (CHP), two hectares of solar farm, three wind turbines with different capacities, a battery, and a heat storage unit. This hub can obtain electricity from the upstream grid and is also responsible for fully supplying the electrical and thermal loads. Herein, power generation uncertainty by renewable energy sources (RESs), the consumer’s electrical and thermal demands, as well as the upstream grid electricity market price are modeled by appropriate probability functions. In addition, the combined thermal and electrical energies to consumer are optimized. Moreover, the effect of uncertainty of uncertain parameters is reduced using a demand response program (DRP) by the load shifting method. The DRP is applied to both energy forms (electrical and thermal), which reduces hub costs by shifting the load from the hours when energy is expensive and unavailable to the hours when energy is cheap and available. Energy storage devices also shift energy from expensive to cheap hours. The integration of a demand response program effectively minimizes operational costs and enhances the efficiency of the energy hub by optimizing energy usage in response to fluctuating prices and availability.