A STUDY ON THE INFLUENCE OF ENERGY PRICE ELASTICITY OF DEMAND ON OPTIMAL OPERATION OF ENERGY HUB

Abstract

The energy market plays an important role in the optimal operation of an energy hub (EH) model. Using energy prices as a controllable resource is expected to further encourage optimization of the integration among various forms of energy, such as electricity and natural gas, within the energy center. This paper proposes a generalized linear modeling method for the energy balance equation of EH considering the price elasticity of demand. With the goal of maximizing EH revenue, the optimal operation problem is established based on energy price control and solved using the GAMS (CPLEX) programming language. To determine the effectiveness of the proposed modeling method and analyze the impact of energy prices on regulation (considering different price elasticities on adjusted results), the model is tested through calculations applied within the scope of a very small energy network. The results show that maximizing the profit of EH by fully utilizing the price flexibility of the load is beneficial for reducing the variance and peak-to-valley difference of the load and can lead to further optimization potential of this model.