An adaptive bi-level optimization model for market integration of community energy storage in local trading and upstream energy and regulation services

The emergence of community energy storage (CES) in smart energy systems presents a critical opportunity to enhance flexibility within local energy markets while also enabling participation in both local energy trading and upstream energy and regulation markets. Advanced CES systems, comprising integ...

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Main Author: Dorahaki, Sobhan (author)
Other Authors: Amjady, Nima (author), Muyeen, S.M. (author)
Format: article
Published: 2025
Subjects:
Online Access:http://dx.doi.org/10.1016/j.est.2025.116715
https://www.sciencedirect.com/science/article/pii/S2352152X25014288
http://hdl.handle.net/10576/65653
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author Dorahaki, Sobhan
author2 Amjady, Nima
Muyeen, S.M.
author2_role author
author
author_facet Dorahaki, Sobhan
Amjady, Nima
Muyeen, S.M.
author_role author
dc.creator.none.fl_str_mv Dorahaki, Sobhan
Amjady, Nima
Muyeen, S.M.
dc.date.none.fl_str_mv 2025-06-22T07:31:10Z
2025-07-01
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv http://dx.doi.org/10.1016/j.est.2025.116715
Dorahaki, S., Amjady, N., & Muyeen, S. M. (2025). An adaptive bi-level optimization model for market integration of community energy storage in local trading and upstream energy and regulation services. Journal of Energy Storage, 123, 116715.
2352152X
https://www.sciencedirect.com/science/article/pii/S2352152X25014288
http://hdl.handle.net/10576/65653
123
2352-1538
dc.language.none.fl_str_mv en
dc.publisher.none.fl_str_mv Elsevier
dc.rights.none.fl_str_mv http://creativecommons.org/licenses/by/4.0/
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Adaptive market participation
Bi-level optimization
Community energy storage
Energy trading
Hydrogen energy systems
Regulation services
dc.title.none.fl_str_mv An adaptive bi-level optimization model for market integration of community energy storage in local trading and upstream energy and regulation services
dc.type.none.fl_str_mv Article
info:eu-repo/semantics/publishedVersion
info:eu-repo/semantics/article
description The emergence of community energy storage (CES) in smart energy systems presents a critical opportunity to enhance flexibility within local energy markets while also enabling participation in both local energy trading and upstream energy and regulation markets. Advanced CES systems, comprising integrated battery and hydrogen storage units alongside fuel cells and electrolyzers, play a pivotal role in enabling energy communities to optimize resource utilization, offer storage services to prosumers, and participate in upstream markets. This study models the competitive interaction between the CES operator and prosumers using a Stackelberg game-theoretic framework, where the CES operator acts as the leader and the prosumers as followers. The CES maximizes its profit through local energy trading and participation in upstream energy and regulation markets, while prosumers minimize their billing costs by trading energy with the CES and participating in demand response programs. The proposed structure is modeled using a mixed integer linear programming (MILP) approach and solved with the CPLEX solver, allowing for precise optimization of CES operations. Various scenarios are analyzed to assess system performance under diverse market and operational conditions. The results demonstrate that the adaptive bi-level optimization model effectively integrates CES into energy trading and regulation markets, providing reliable reserve services with minimal impact on profitability. This approach highlights the potential of CES in advancing sustainable and economically viable energy communities.
eu_rights_str_mv openAccess
format article
id qu_cb1c733cbd39fe555533340262c260ca
identifier_str_mv Dorahaki, S., Amjady, N., & Muyeen, S. M. (2025). An adaptive bi-level optimization model for market integration of community energy storage in local trading and upstream energy and regulation services. Journal of Energy Storage, 123, 116715.
2352152X
123
2352-1538
language_invalid_str_mv en
network_acronym_str qu
network_name_str Qatar University repository
oai_identifier_str oai:qspace.qu.edu.qa:10576/65653
publishDate 2025
publisher.none.fl_str_mv Elsevier
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rights_invalid_str_mv http://creativecommons.org/licenses/by/4.0/
spelling An adaptive bi-level optimization model for market integration of community energy storage in local trading and upstream energy and regulation servicesDorahaki, SobhanAmjady, NimaMuyeen, S.M.Adaptive market participationBi-level optimizationCommunity energy storageEnergy tradingHydrogen energy systemsRegulation servicesThe emergence of community energy storage (CES) in smart energy systems presents a critical opportunity to enhance flexibility within local energy markets while also enabling participation in both local energy trading and upstream energy and regulation markets. Advanced CES systems, comprising integrated battery and hydrogen storage units alongside fuel cells and electrolyzers, play a pivotal role in enabling energy communities to optimize resource utilization, offer storage services to prosumers, and participate in upstream markets. This study models the competitive interaction between the CES operator and prosumers using a Stackelberg game-theoretic framework, where the CES operator acts as the leader and the prosumers as followers. The CES maximizes its profit through local energy trading and participation in upstream energy and regulation markets, while prosumers minimize their billing costs by trading energy with the CES and participating in demand response programs. The proposed structure is modeled using a mixed integer linear programming (MILP) approach and solved with the CPLEX solver, allowing for precise optimization of CES operations. Various scenarios are analyzed to assess system performance under diverse market and operational conditions. The results demonstrate that the adaptive bi-level optimization model effectively integrates CES into energy trading and regulation markets, providing reliable reserve services with minimal impact on profitability. This approach highlights the potential of CES in advancing sustainable and economically viable energy communities.This publication was made possible by the first Cycle of ARG Grant No. ARG01-0504-230073, from the Qatar Research, Development and Innovation (QRDI) Council, Qatar. The findings herein reflect the work, and are solely the responsibility, of the authors. The authors also gratefully acknowledge support from Qatar University. Open Access funding provided by the Qatar National Library.Elsevier2025-06-22T07:31:10Z2025-07-01Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://dx.doi.org/10.1016/j.est.2025.116715Dorahaki, S., Amjady, N., & Muyeen, S. M. (2025). An adaptive bi-level optimization model for market integration of community energy storage in local trading and upstream energy and regulation services. Journal of Energy Storage, 123, 116715.2352152Xhttps://www.sciencedirect.com/science/article/pii/S2352152X25014288http://hdl.handle.net/10576/656531232352-1538enhttp://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessoai:qspace.qu.edu.qa:10576/656532025-06-22T19:08:03Z
spellingShingle An adaptive bi-level optimization model for market integration of community energy storage in local trading and upstream energy and regulation services
Dorahaki, Sobhan
Adaptive market participation
Bi-level optimization
Community energy storage
Energy trading
Hydrogen energy systems
Regulation services
status_str publishedVersion
title An adaptive bi-level optimization model for market integration of community energy storage in local trading and upstream energy and regulation services
title_full An adaptive bi-level optimization model for market integration of community energy storage in local trading and upstream energy and regulation services
title_fullStr An adaptive bi-level optimization model for market integration of community energy storage in local trading and upstream energy and regulation services
title_full_unstemmed An adaptive bi-level optimization model for market integration of community energy storage in local trading and upstream energy and regulation services
title_short An adaptive bi-level optimization model for market integration of community energy storage in local trading and upstream energy and regulation services
title_sort An adaptive bi-level optimization model for market integration of community energy storage in local trading and upstream energy and regulation services
topic Adaptive market participation
Bi-level optimization
Community energy storage
Energy trading
Hydrogen energy systems
Regulation services
url http://dx.doi.org/10.1016/j.est.2025.116715
https://www.sciencedirect.com/science/article/pii/S2352152X25014288
http://hdl.handle.net/10576/65653