A Multi-Objective Optimization Framework for Distributed Energy Storage in Multi-Energy Systems: A Case Study of the Hubei Electric Power Special Network

Renewable energy development and the pressing demand for optimized energy management make distributed energy storage Systems in multi-energy systems more relevant to China. This paper will discuss an optimization strategy for the “Hubei Electric Power Special Network” using distributed energy storage and multi-energy coupling within a P2P market mechanism based on VPP IoT frameworks. We develop an innovative, advanced P2P market structure based on optimized energy exchange algorithms, storage management algorithms and cooperative behaviors between prosumers. Multi-energy coupling is used among electricity, heat and gas to ensure strategy-based storage virtualization in terms of cost efficiency, a multi-objective optimization model and maximized battery storage efficiency. The whole transaction process uses blockchain for safe registration, while the use of Nash bargaining under uncertainty can ensure the fair distribution of multi-energy trading as the contribution from each party. Performance test in the Hubei Electric Power Special Network is discussed along with the performance in terms of time, heating power, electricity demand, storage price and energy trading efficiency. Implementing the proposed strategy on top of the VPP operation and advanced energy management may effectively support a further possibility of being added to China’s changing energy future scenario, which can be considered in such contexts.