Multiparty Energy Management for Grid-Connected Microgrids With Heat- and Electricity-Coupled Demand Response

Combined heat and power (CHP) is an important distributed generation type for the microgrids (MGs) with both thermal and electricity demand. In this paper, a multiparty energy management framework with electricity and heat demand response is proposed for the CHP-MG. First, in order to decide the electricity and thermal prices, an optimization profit model of a microgrid operator (MGO) is formulated including the cost of gas, the income of energy sold to the consumers, and the income of surplus electricity feed to the utility grid. The CHP system is operated in a hybrid mode by dynamically selecting the following-thermal-load mode and the following-electric-load mode. Moreover, for the building energy consumers, an optimization model is formulated containing the utility of electricity consumption, the expenditure of purchasing electricity/heat, and the comfortable degree of indoor temperature. The trading process between the MGO and consumers is designed as a one-leader
$N$
-follower Stackelberg game, and the existence and uniqueness of the Stackelberg equilibrium is proved. Finally, the case study of a CHP-MG system containing six building users is provided to show the effectiveness of the proposed method.