Electricity Market Bidding Strategy for Combined Heat and Power Unit Considering Cooperation of Heat Demand Control

Abstract

Electro-thermal coupling limits the flexibility of combined heat and power (CHP) units and affects their profit when participating in the electricity market. Based on this, this paper proposes a CHP unit electricity market bidding strategy model considering the cooperation of heat demand control, that is, when CHP units bid in the electricity market, they actively adjust the heat users' energy through price-based demand response (DR) to release the electric operational flexibility, so as to achieve the optimal profit. The problem of CHP unit joint electricity market bidding and heat-side DR pricing problem is expressed as a bi-level model, in which the upper model is the CHP unit decision model, and the lower models are the day-ahead electricity market clearing and the heat user decision model respectively. Karush- Kuhn- Tucker conditions and linearization methods are used to convert the bi-level model to mixed integer linear programming model. The feasibility and effectiveness of the model are verified by a case study.