Multiple Perspective-Cuts Outer Approximation Method for Risk-Averse Operational Planning of Regional Energy Service Providers

In the smart grid and future energy internet environment, a regional energy service provider (RESP) may be able to integrate multiple energy resources such as generator units, demand response, electrical vehicle charging/swapping stations, and carbon emission trading to participate in the market. By imploring a well-known portfolio optimization theory conditional value-at-risk to tackle electricity price uncertainty, this paper formulates the risk-averse day-ahead operational planning for such a RESP as a mixed-integer quadratically constrained programming (MIQCP), named as RA-RESP. A global optimization method, named as multiple perspective-cuts outer approximation method (MPC-OAM) is proposed to solve this model efficiently. A remarkable stronger and tighter mixed integer linear programing master problem is designed to accelerate the convergence of the proposed method. Comprehensive simulation results show that, compared with existing day-ahead planning models, the RA-RESP is a good compromise between profit-based models and cost-based ones. The proposed MPC-OAM can solve complicated RA-RESP problem efficiently, and compared with state-of-the-art solution techniques, the MPC-OAM outperforms in both computing speed and solution quality, especially for scenario which includes more nonlinear factors. © 2005-2012 IEEE.