Optimal Operation of an AA-CAES Based Energy Hub in Electricity and Heating Markets

Coupling of electricity and heating systems is conducive to efficiency improvement and peak-to-valley demand adjustment. AA-CAES (Advanced adiabatic compressed air energy storage) with the capability of cogeneration can integrate power and heating systems. This paper establishes a bi-level operation model for an AA-CAES based energy hub interacts with electricity and heating systems, where the heating system is modeled considering flexible demands. Finally, a multi-parametric programming based method is proposed to reformulate and solve the bi-level model. Case studies show that the proposed model can provide optimal bidding and operation strategies of electricity and heat for the AA-CAES based energy hub.