Optimal Strategy of Energy retailer in Integrated Market Using Smart Energy Hub Framework
In this paper, a bi-level optimization problem is formulated to find the optimal strategy of energy retailer in integrated energy market using the smart energy hub concept. In the upper level problem, the energy retailer determines the price of energy carriers and the purchase amount from the wholesale market while aiming to maximize his own profits. The consumers decide on their purchase amount of energy carriers minimizing their energy bills. All market participants, including energy retailer, rival retailers, and consumers are assumed to be smart energy hubs to increase the competition in the market. In other words, all market participants have the ability to generate power. To evaluate the performance of the proposed model, the research has implemented a case study with one main energy retailer, two rivals, and 10 consumers. The results show the optimal behavior of the energy retailer in the market.
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