Increasing efficiency and cost-effectiveness through optimizing the interaction between energy hub systems and distribution networks in modern energy distribution networks

Energy hub systems (EHSs) have emerged as critical components in modern energy networks, providing the necessary flexibility to effectively respond to diverse energy needs. These systems operate within distribution networks (DNs), where various input energy carriers undergo conversion into diverse forms of energy, including electricity and heat. This versatility enables energy hub operators (EHOs) to efficiently meet different energy needs while competing with similar EHOs to ensure cost-effective operation. In this article, we present a thorough multi-follower two-level optimization framework (2-LOF) developed to enhance the interaction between energy hubs (EHs) and DNs. The main high-level objective of this framework is to minimize the operating cost of the entire DN while adhering to network constraints. Simultaneously, at a lower level, the focus is on minimizing the total costs incurred by each EH connected to the DN. It is worth noting that each EH has the ability to participate in energy exchange with other EHs, increasing its ability to optimally meet energy demand. The primary objective of this research is to identify the best power exchange tactics between DN and EH, with the overall goal of minimizing the collective operating cost related to EHs and DNs. The resulting 2-LOF represents a nonlinear problem, which needs to consider Karush–Kuhn–Tucker optimal conditions to solve it. To facilitate practical implementation and analysis, the Archimedes optimization algorithm is employed. This model is then evaluated using the IEEE 33-bus test system. Results of our strategic optimization efforts are carefully analyzed, verifying the efficiency and effectiveness of the proposed optimization model in optimizing the coordination between EHs and DNs.