Optimal Strategy of Energy retailer in Integrated Market using smart energy hub framework

In this paper, a bi-level optimization problem is formulated to find the optimal strategy of energy retailer in integrated energy market using smart energy hub concept. In the upper level problem, the energy retailer determines the price of energy carriers and the purchase amount from the wholesale market aiming to maximize his own profit. The consumers decide on their purchase amount of energy carriers minimizing their energy bill. All market participants including energy retailer, rival retailers, and consumers are assumed to be smart energy hubs to increase the competition in the market. In other words, all market participants have the ability to generate power. To evaluate the performance of the proposed model, it has been implemented on a case study with one main energy retailer, two rivals, and 10 consumers. The results show the optimal behavior of energy retailer in the market.