Energy Management Scheme in Hierarchical Integrated Energy Systems with Coalition

Often, coalitions are formed by the hierarchical integrated energy systems (HIESs) and their evolutionary process which is driven by the benefits of stakeholders and consolidate energy consumers and producers. Several literature have failed to analyze the operation of HIES under the impact of multiple coalitions. At the lower level, multiple users, in the middle level, the multiple distributed energy stations (DESs) and at the upper level, one natural gas and one electricity utility company structure is used for analyzing the HIES operation with a trading scheme. The Lagrange function is used for deriving the optimal operation strategy based analytical function for each probable coalition and each market participant comprising of users and the DESs. It is evident from the results that in a single coalition, the profits linked to other DESs will decrease while increasing the profit of one DES with technological enhancements, users show an aversion towards DESs with high generation coefficient while they are attracted to the ones that enable reduction of heat and electricity price. Maintaining their isolation is preferred by high heat and electricity consuming DESs at the same energy price. Other coalitions and their operations are not affected by the change in parameters of one coalition.