Optimal Operation of Rich Renewable Energy Power Systems Considering Coordination of Demand Side with Nash Bargaining Theory

Managing the unpredictable renewable energy sources of the grid is one of the primary issues facing power systems. This is particularly important in arid areas where there is a growing need for desalinated water. However, because of their historical independence, little is known about the interactions between power systems and water. This paper incorporates Nash bargaining theory into a two-stage stochastic co-optimization model in order to fill this gap. The objective of this model is to reduce joint operating costs and optimize resource allocation between grid-connected desalination facilities and renewable energy systems. The model takes operational restriction into account, and maximizes the energy exchange and the efficiency of renewable energy usage. It is realized by treating desalination plants as demand-side resources that may be adjusted. Case Studies are conducted and the results of the simulation show that the proposed approach lowers operating expenses, enhances the integration of renewable energy sources, and lessens operational risks.