Economic and Optimal Dispatch Model of Electricity
Economic and Optimal Dispatch Model of Electricity
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problem of VPPs. The objectives adopted in the economic of energy in the production, transmission and distribution
dispatch model include the minimum total cost and the horizontally, while the user-side interaction is fully tapped,
maximum total profit [13]-[15]. In reference [16], a VPP– which effectively improves the flexibility of the the source
load game model was developed with the highest VPP return network, and is connected to the information interaction
as the objective function. In reference [17], researchers systems of the electricity, heat and gas networks to take part
developed an economically optimised dispatch model for a in the large grid dispatch model, reduce carbon costs and
VPP by adding electric vehicles to enhance its flexibility. In optimise system profits [24]. In this paper, a VPP system in
[18], VPPs in separate regions were optimised with the the park which contains P2G is constructed, as shown below.
objective of maximising their overall revenue, and bidding The supply side is supplied by distributed energy, the upper
strategies for VPP participation in the different markets were grid and the gas grid, which provide the energy source for the
obtained. In reference [19], researchers have proposed a VPP system; The conversion side contains the electrolysis tank,
scheduling approach with two stages in order to study impact hydrogen storage tank and methane reactor unit for P2G
of energy storage equipment and customer revenue on VPP system, the waste heat boiler and gas turbine unit for CHP
revenue. Some scholars [20] considered the uncertainties of units and the gas boiler unit; The combined electrical, gas,
electricity prices over time and developed an improved VPP hydrogen and thermal loads form the load side of the system.
multistage stochastic optimisation model. In reference [21], The electrolysis tank converts potentially discarded wind-
in order to obtain the best operational strategy to promote new generated or low-cost electricity into hydrogen, part of which
energy consumption, the researchers established a two-level is injected into the natural gas (NG) system via a methane
electricity-thermal energy trading strategy with an objective reactor to produce methane for direct supply to the gas load
function to reduce the cost of energy acquired by the VPP. or gas turbine cogeneration, reducing the amount of gas
The above studies have mainly enhanced the operational purchased from the upper gas grid and reducing the system's
performance of the energy market by adding energy storage energy purchase costs. The remaining portion, which can
devices, improving the dispatching strategy and tapping into achieve the arbitrage of "high generation and low storage," is
the demand response of consumers; this strategy lacks the stored in the hydrogen storage tanks and supplied towards the
complexity of energy migration, and it assumes the hydrogen load during the times when electricity prices are at
minimisation of operational costs as the objective their highest. This reduces the energy loss brought on by the
optimisation function without sufficiently considering carbon methanation step's use and increases the system's overall
emission costs. efficiency in terms of energy utilization.
According to data published by the International Energy China's first power-to-gas conversion unit using wind and
Agency, carbon emissions from industrial parks in China solar energy has been completed in Dalian and has achieved
account for approximately 31% of the country's total good results. In the future, as the relevant technology
emissions and exhibit continuous growth. As the core unit of develops and matures, the use of the above-mentioned multi-
industrial clustering and development, industrial parks have energy coupled units to optimise VPP scheduling and
become a driving force in China's economic growth and an operation will achieve even better economic benefits.
important factor for achieving scientific and precise carbon Therefore, this paper studies the optimal scheduling of VPP
emission reduction and eventual carbon neutrality [22-24]. with power to gas conversion, which is forward-looking and
Based on the above analysis, we take a park as the context for of theoretical guidance.
our study, consider the operating and carbon emission costs
of a VPP in the park, and assemble a two-stage power-to-gas Power flow Heat flow Fuel flow Hydrogen flow
conversion model with the minimal costs for all systems in Supply side Conversion side Load side
the park as the scheduling target. Through this study, we
refine power-to-gas (P2G) conversion into a two-stage Electrical
Upper grid
operation of electricity-to-hydrogen transformation and Electric
load
P2G
hydrogen methanation, prioritising the high-grade utilisation WT、PV energy storage
Electrolysis tank
of hydrogen energy in the hydrogen production link, which H2 Hydrogen
can reduce the energy loss caused by step conversion in the storage tanks
Hydrogen
CHP
whole operation process. The energy loss caused by Methane reactors load
GT
conversion can be reduced throughout the operation process. CH4
A VPP that aggregates multiple energy sources is constructed, Upper Gas
Gas
load
and an optimal control model under multiple scenarios is Network
HRSG Gas storage
determined by using CPLEX with YALMIP in MATLAB to
Thermal storage GB
evaluate the recommended model's performance.
Heat network Heat load
II. SYSTEM STRUCTURE OF THE VPP
The VPP system covers a wide range of energy supply and Fig. 1. VPP structure
conversion devices, including wind power plants (WPPs), PV
generators, combined heat and power (CHP), P2G, gas
boilers and energy storage devices. The system can prioritise
the advantages of interactively coupling electricity, heat and
gas to achieve synergistic optimisation among different
energy sources vertically, coordinate and optimise each type
0 v vin (8)
3 − PES (t + 1) / ηES ]t
release release
av + bv + cv + d vin v ve
2
t
store release
ele
PGT (t )(1 − ηGT − ηq ) where 𝑃GS (𝑡) and 𝑃GS (𝑡) refer to gas storage and
P heat
HRSG (t ) = K he
HRSG M sr
HRSG
(4) bleeding power of the GS system; 𝜂GS store release
and 𝜂GS refer to
ηGT
gas storage efficiency and gas discharge efficiency of GS
H HRSG (t ) = PHRSG
heat
(t )t (5) system, respectively; 𝛿 GS is the self-loss rate of the GS
system; and 𝑄GS (𝑡) refers to NG volumes stored by the GS
𝑒𝑙𝑒
where 𝑃𝐺𝑇 (𝑡) and 𝑄𝐺𝑇 (𝑡) refer to the output electric system during periods 𝑡, respectively.
power and the GT's volumetric consumption of NG; 𝐿𝑔𝑎𝑠
D. Model of power-to-gas equipment
refers to the low calorific value of NG; the thermal power
output and the heat output value of HRSG are denoted as (1) Power to gas (P2G)
heat
𝑃HRSG (𝑡) and 𝐻HRSG (𝑡); 𝜂𝐺𝑇 refers to GT’s power generation There are two types of P2G equipment: one converts
efficiency ; 𝜂𝑞 refers to the heat dissipation loss rate of the electric energy into hydrogen with an efficiency of 75%–85%,
he sr and the other converts hydrogen into electric energy into
HRSG; 𝐾HRSG and 𝑀HRSG are the heating coefficient and flue
natural gas with an efficiency of 45%–60% through
gas recovery rate of the bromine cooler, respectively; and Δt
methanation. A two-step chemical equation is shown in
is the unit scheduling period. Equation (11).
(2) Gas boiler (GB)
A GB is a type of energy conversion equipment that 2H 2 O ⎯⎯⎯⎯
electrolysis
→ 2H 2 + O 2
produces heat by consuming natural gas. A commonly used (11)
CO 2 +4H 2 ⎯⎯⎯→ CH 4 +2H 2 O
catalyst
mathematical model expression is
QGB (t ) Lgas A traditional P2G system produces natural gas by
heat
PGB (t ) = ηGB (6)
t methanating all the hydrogen generated by water electrolysis,
and if there is a demand for hydrogen load in the system, it is Equation (15).
purchased from the higher gas network, which not only PMR = ηMR PMRi (15)
reduces safety but also prevents efficient P2G use. This paper
considers the high efficiency of an initial electricity-to- where 𝑃MR and 𝑃MRi are the output power and input power
hydrogen process and the developing trend of a hydrogen of the methane reactor during period 𝑡, respectively, and 𝜂MR
energy demand in the future; the two factors are combined to refers to the conversion efficiency of the methane reactor.
draw a two-stage P2G operation process, as shown in Figure (4) Hydrogen storage tank
2. The first stage is the hydrogen energy generation stage, The model is shown in Equation (16).
where the wind power that may originally be discarded PHSTo,t
through rectification flows into the electrolyser through the EHST,t = EHST,t-1 + ηHSTi,t PHSTi,t − (16)
electrolysis of water to convert electrical energy. The ηHSTo
electrolyser converts electricity into hydrogen energy by
water electrolysis, and at the same time, to improve where 𝐸HST,t refers to capacity of the hydrogen storage
operational flexibility, hydrogen energy is stored in tank; the input and output power of the hydrogen storage tank
additional storage tanks to supply hydrogen. The second stage are denoted as 𝑃HSTi and 𝑃HSTo during period 𝑡, respectively;
is the consumption of hydrogen energy, and if there is any 𝜂HSTi and 𝜂HSTo refer to hydrogen storage efficiency and
surplus hydrogen, it is fed into the methane reactor and hydrogen release efficiency.
converted into CH4. This is used by the CHP and the GB, thus E. Integrated demand response load
not only achieving an efficient use of energy but also
With the increase in flexible loads such as electric vehicles
reducing risk when purchasing and transporting hydrogen,
and inverter air conditioners on the energy consumption side,
thus achieving a win‒win situation.
it is increasingly important to study demand response loads
to improve the flexible operation of integrated energy
systems. It is characterised by the fact that the total amount
O2 H2O H2O CO2 of load and the amount of load in each time period is not
Wind power, Methane Natural Gas
constant during the dispatch time. Within the defined time
Electrolyser period and the amount of load, the demand response load can
upper grid reactors CH4 Network
be shifted, reduced and substituted to achieve the desired
electricity
requirements by processing the different transgressive loads.
H2
In general, demand response loads can be shifted, curtailable
Hydrogen or substitutable loads. In this paper, only thermal loads are
storage tanks replaced by electrical loads. The specific model is as follows:
Fig. 2. Two-stage P2G operation process Pload (t ) = Pload
'
(t ) + Pload
cut
(t ) + Pload
tran
(t ) + Pload
rep
(t ) (17)
A conventional P2G conversion process produces natural H load (t ) = H load
'
(t ) + H load
cut
(t ) + H load
tran
(t ) − Pload
rep
(t ) (18)
gas by consuming electrical energy to meet demand of the
system. The power output is modelled as Equation (12-13): − Pload,max
cut
(t ) − Pload
cut
(t ) 0 (19)
P (t ) = P (t )ηP2G
gas
P2G
ele
P2G
(12)
T
QP2G (t ) =
P (t ) t
gas
P2G
(13)
P
t =1
tran
load
(t ) t = 0, tran
Pload (t ) Pload,max
tran
(t ) (20)
Lgas
′ ′
where 𝑃load (𝑡), 𝑃load (𝑡) , 𝐻load (𝑡) and 𝐻load (𝑡) refer to the
where the NG power output and the electric power electrical load demand value, predicted value of electrical
gas
consumed by the P2G system are denoted as 𝑃P2G (𝑡) and load demand, thermal load demand value and predicted value
ele cut
𝑃P2G (𝑡); 𝑄P2G (𝑡) refers to the NG volume generated by the of thermal load demand of the VPP, respectively; 𝑃load (𝑡),
tran rep
P2G system during period 𝑡; and 𝜂P2G refers to electrical 𝑃load (𝑡) and 𝑃load (𝑡) are the reducible, transferable and
conversion efficiency of the P2G process. replaceable electrical loads of the VPP system, respectively;
cut tran
(2) Electrolyser 𝐻load (𝑡) and 𝐻load (𝑡) are the reducible and transferable heat
The electrolyser can convert electrical energy into loads; and the maximum values of the reducible and
cut
hydrogen by the electrolysis of water, the mathematical transferable electrical loads are denoted as 𝑃load,max (𝑡) and
model of which is shown in Equation (14). tran
𝑃load,max (𝑡).
PEC = ηEC PECi (14)
IV. ECONOMIC OPTIMAL DISPATCH MODEL FOR VPPS
where 𝑃EC and 𝑃ECi are the output power and input power
of the electrolyser, respectively; and 𝜂EC refers to conversion A. Target function
efficiency of the electrolyser. To achieve economic optimisation and minimise carbon
(3) Methane reactor emissions, we transform a multiobjective problem into a
Hydrogen reacts with CO2 in a methane reactor via the single-objective optimisation problem by introducing a
Sabatier process to form CH4 and water, where the carbon tax 𝑐𝑡𝑎𝑥 , which converts carbon emissions into carbon
mathematical model of the methane reactor is shown in costs. With the objective function of minimising the sum of
the operating cost 𝐶1 and the carbon emission cost 𝐶2 of the CMAIN = [ f PV (t ) PPV (t ) + f WT (t ) PWT (t )
VPP in the park, the optimisation objective is established as
follows: + f CHP ( PGTele (t ) + PHRSG
heat
(t ))
+ f GB PGB
heat
(t ) + f P2G PP2G
gas
(t )
min C = C1 + C2 (24)
+ f ES ( PESstore (t ) − PESrelease (t ))
24
1400
Wind power forecast
600 Electrical load
Photovoltaic predicted power
Heat load
1200 Gas load
500 Wind power forecast Electrical load
400 1000
Heat load
Power/kW
Power/kW
300 800
200
600
TABLE I
EQUIPMENT PARAMETERS
Type of Minimum output Maximum output power
Efficiency Maintenance costs (yuan/kWh)
equipment power (kW) (kW)
CHP 0 1000 0.45 0.15
TABLE II
PARAMETERS OF ENERGY STORAGE EQUIPMENT
Type of Maximum power for Maximum power of Self-consumption Maintenance costs
equipment charging (kW) discharging (kW) rate of equipment (yuan/kWh)
TABLE Ⅲ
DEMAND RESPONSE LOAD COMPENSATION PRICE
Type of load Cost (yuan/kWh)
developed in this paper). under the selected typical day under different scenarios
(1) Impacts of the VPP build method on costs allows the system operating costs for each scenario to be
The simulation study of the VPP in this industrial park obtained, as shown in Table Ⅳ.
TABLE Ⅳ
EACH SCENARIO COST COMPARISON
Cost category/yuan Scenario 1 Scenario 2 Scenario 3
Cost of system interaction with the parent grid/yuan 1608.1 458.6 634.7
According to the analysis in Table Ⅳ, since Scenario 1 is the use of wind power to produce hydrogen, which provides
operated in a traditional manner without considering the a certain capacity of hydrogen for the system, and this method
integrated demand responses of electricity and heat and the also reduces the danger in the process of transporting
two-stage P2G conversion process, the system purchases hydrogen and improves the efficiency of the multienergy
more energy and has the highest electricity purchase costs and coupling within the VPP. In addition, the total cost of
sale interactions with the superior grid, but there is no demand Scenario 3 is reduced by 26.5% and 24.2% compared to
response load compensation cost. On the basis of Scenario 1, Scenario 1 and Scenario 2, respectively, so the optimisation
Scenario 2 addresses the combined demand response for heat model proposed in this paper, i.e., Scenario 3 has better
and electricity, so Scenario 2 has an additional demand economics in the operation of the VPP.
response load compensation cost of $415 compared to (2) Analysis of the P2G operation
Scenario 1. However, due to the addition of demand response As seen in Figure 5, during the periods of 1:00–7:00 and
loads, the baseline load decreases during peak periods, 22:00–24:00, when wind power is high and the price of
reducing the pressure on the generating units compared to electricity is low, the P2G output is high, while during the
scenarios where demand response is not considered, other periods from 7:00 to 22:00, the wind power output
effectively relieving the internal load of the virtual power decreases and the P2G output is basically nonexistent,
plant and making the system in Scenario 2 reduce the cost of converting electricity from the low-cost periods into other
electricity purchase and sale interaction with the superior grid forms of energy to supply the load during the high-cost
by 70.5% compared to Scenario 1. Scenario 3 has the highest periods. The hydrogen produced in the electrolyser is fed into
operation and maintenance cost because its two-stage the methane reactor to produce natural gas to supply the gas
electricity to gas equipment is considered compared to load, and the hydrogen produced in most of the remaining
Scenario 2. Due to the operation of the electrolyser and other hours is stored directly in the hydrogen storage tank to supply
equipment, its purchased electricity cost is slightly higher, but the hydrogen load, reducing the energy loss caused by
the purchased gas cost is substantially lower, mainly due to multistage conversion compared to methanation again
.
2000
1800
Methane reactor output
Electrolyser output
1600
Hydrogen storage tanks
1400
Power/kW
1200
1000
800
600
400
200
0
0 4 8 12 16 20 24
Time/h
Fig. 5. Output of the electrolyser and the methane reactor
3000
Grid interactive power ES charging and discharging capacity
Photovoltaic power output Electrolyser power consumption
2500 CHP electrical output Electrical load
Wind turbine output
2000
1500
Power/kW
1000
500
−500
−1000
−1500
0 4 8 12 16 20 24
Time/h
Fig. 6. Scenario 3 power balance operation result
2000
HS charge and discharge heat
GB heat output
1500 CHP heat output
Heat load
1000
Power/kW
500
−500
−1000
0 4 8 12 16 20 24
Time/h
Fig. 7. Scenario 3 thermal balance operation result
2000
Power/kW
1000
−1000
−2000
0 4 8 12 16 20 24
Time/h
Fig. 8. Scenario 3 natural gas balance operation result
(3) Scheduling optimisation results analysis met by the thermal power output of the CHP units and the GB
Figures 6–8 show the results of the electricity balance, heat output, while the HS system exerts heat, reducing the
balance and gas balances under Scenario 3. operating costs of the system.
As seen in Figure 6, since the incorporated demand The natural gas balance optimisation results in Scenario 3
response of electricity and heat, as well as the two-stage P2G are shown in Figure 8. The gas load demand is mainly met by
conversion process, are taken into account in Scenario3, the the system purchasing external gas throughout the 24-hour
system load power demand is met at this time by the system's day, while the CHP unit consumes more gas to output
purchase of energy out from upper power system, the electrical and thermal energy to meet the electrical and
electrical power output of the CHP units, and the outputs of thermal loads due to its low power output cost. When the
the wind and PV units. During the 1:00–7:00 and 22:00– system reaches its maximum purchase of gas from the upper
24:00 periods, when wind power is abundant and electricity grid, the output is supplemented by the GS system and
prices are low, the P2G conversion output is higher; however, methane reactors. During the period 1:00–7:00, when
during the other periods, the P2G conversion output is electricity prices are low, the methane reactor starts working
basically nonexistent, converting the electricity during the and produces natural gas by consuming electricity, and the
low-cost hours into other forms of energy to supply the load excess gas is stored by the GS system. During the hours of
during the high-cost hours. This phenomenon reduces the 11:00–21:00, when electricity prices are high, the methane
system operating costs. As the wind turbines produce more reactor, which more expensively produces gas, stops working,
power at night, the excess power is still stored by the ES and the gas load demand is mainly met by the system
system at this time. Since the PV unit output is higher during purchasing gas from external sources and by the GS bleeding
the day and the electrical load after the demand response is gas. The various pieces of equipment work synergistically to
not much different from that at night, the system prioritises reduce system operating costs.
using the wind turbine generation during the daytime period (4) Sensitivity analysis
to fully use the clean energy output. During the 11:00–21:00 Different weights 𝑟1 and 𝑟2 are assigned to the system
period at the peak of the electricity tariff, the ES system is operating cost 𝐶1 and the carbon emission cost 𝐶2 ,
used to meet the electrical load demand by discharging. respectively, as shown in Equation (40). Their impacts on the
The results of the system heat balance optimisation in system are analysed. The weight coefficients are used to
Scenario 3 are shown in Figure 7. During the 1:00–7:00 indicate the amount of attention being given, and 𝑟1 + 𝑟2 = 1.
period, the heat load demand is mainly met by the CHP output When 𝑟1 > 𝑟2 , more attention is given to the system's
because it is at a low electricity price at this time; when the operating cost, i.e., economy; when 𝑟1 < 𝑟2 , more attention is
CHP system reaches its output limit, the GB output is used, given to the system's carbon emission cost, i.e.,
and the excess heat generated is stored by the HS system. environmental friendliness. Figure 9 shows the variation
During the 8:00–10:00 period, the EB system has sufficient curves of economic indicators, environmental indicators and
power input because the scenic units are out of power; thus, the total costs for different weighting factors.
the EB system remains in working condition during this
min C ' = λ1C1 + λ2C2 (36)
period. From 11:00–21:00, due to the higher electricity prices
and the lower gas unit prices, the heat load demand is mainly where 𝐶 ′ is the total cost after adding the weighting factor.
60000 35000
Running costs
55000
Cost of carbon emissions
50000 Total cost Total cost 34500
45000
40000 34000
Total cost/yuan
Costs/yuan
35000
30000 33500
25000
20000 33000
15000
10000 32500
5000
0 32000
1.0,0.0 0.9,0.1 0.8,0.2 0.7,0.3 0.6,0.4 0.5,0.5 0.4,0.6 0.3,0.7
Weighting factor
Fig. 9 Comparison of indicators under different weight coefficients
Different coefficient settings affect the final optimisation plant system in the period of high cost is met, the economic
results: When 𝑟2 is large, decision-makers pay more attention goal is achieved, and the energy utilization rate and low-
to environmental protection, the carbon emission cost carbon cleanliness are improved.
decreases, and the operating cost significantly increases, and (2) In the coordinated electricity-heat-gas optimal control
vice versa. Figure 9 shows that when the weight coefficient of virtual power plants, consideration of electricity and heat
changes from extreme attention to economic benefits (𝑟1 =1, load demand response and low-carbon objectives can
𝑟2 =0) to slight attention to economic benefits (𝑟1 =0.7, 𝑟2 =0.3), promote multienergy synergistic optimisation, ensuring a
with the reduction in attention to the economy, the operating symmetrical power balance between system electricity, heat
cost increases, and the carbon emission cost decreases. and gas, improving the stability and flexibility of system
However, paying excessive attention to carbon emissions operation, and facilitating energy flow and interaction
leads to a significant increase in operating costs; at this time, between system sources, storage and load.
the reduction in carbon emissions is very limited. Therefore, (3) By introducing weighting coefficients for the
the coefficient range on the right side of the coordinate axis sensitivity analysis of the system to form a comparison of
has no actual reference value, and the cost performance is optimal allocation options under different scenarios, the
very low. In summary, the ranges of reasonable coefficients results show that different optimisation preference settings
are as follows: (𝑟1 =0.7, 𝑟2 =0.3) ~ (𝑟1 =0.4, 𝑟2 =0.6). can significantly affect the system allocation results. The
reasonable dispatch coefficients for the economic and
VI. CONCLUSION environmental aspects of the VPP studied in the paper range
In this paper, by introducing the multienergy coupled from (𝑟1 =0.7, 𝑟2 =0.3) ~ (𝑟1 =0.4, 𝑟2 =0.6). In the future, by
operation of power-to-gas and virtual power plants with considering the degree of concern for different aspects in the
internal CHP units and gas turbines and constructing a model optimisation process, suitable weighting coefficients can be
for the optimal dispatch operation of participating VPPs, with selected to achieve flexible dispatch control of economic and
the objective of minimising the sum of operating costs and environmental indicators.
carbon emission costs, combined with arithmetic simulations,
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